-Translation from Thai Text-

10. Internal Control

The Board of Directors has appointed an audit committee consisting of 3
independent directors none of whom holds management position. The audit
committee’s responsibility is for the oversight of the financial report
preparation for accuracy, adequate disclosure, compliance to the
governing rules and regulations and effective internal control process.
The company has engaged a consultant to supervise the internal audit
process with a report done on a quarterly basis in 2007. The consultant
regularly meets with the audit committee to review the audit results and
the adequacy of the internal control process.

The audit committee’s report is attached.

-Translation from Thai Text-

Audit Committee Report to the Shareholders

To the Shareholders of Pico (Thailand) Public Company Limited

The audit committee of Pico (Thailand) Public Company Limited consists
of Mr. Chaiyod Bunyagidj as chairman and Mr. Sern Vithespongse and Mrs.
Sasitorn Phongsatorn as members of the committee.

The audit committee performes its duty and responsibility pursuant to
the delegation of the Board of Directors. In 2007, 6 meetings were held
with executive management and the independent auditor. The results of
the meetings are as follows:

-   Financial Report Preparation: The committee diligently reviewed the
    quarterly and annual financial report for 2007 with management and
    the independent auditor to ensure that the consolidated statements
    are presented accurately and in accordance with the generally
    accepted accounting principles. Disclosures were also reviewed to
    ensure of accuracy and adequacy. Observation remarks were also made
    to management with remedial management plan received. Intercompany
    transactions were vetted for strict compliance to the rules and
    regulations of the SET.

-   Internal Control: The committee reviewed the 2007 internal audit
    program with suggestions to improve the process made. Operation of
    each department was reviewed to determine that adequate control
    process exists.

-   Related Transactions: The committee reviewed all related
    transactions to ensure that they were conducted at arms length and
    are strictly normal trade transactions and that the company closely
    abides by its commitment to good governance.

-   Compliance: The committee reviewed transactions for compliance to
    the rules and regulations of the SET and other laws. Complete
    compliance is noted.

-   Good Governance: The Company is found to abide by its commitment to
    the concept of good governance. Its operation is conducted in a
    transparent and accountable manner with all stakeholders’ interest
    in mind.

  The committee also reviewed the selection of the independent auditor
  for the Board of Directors to present to the shareholders for
  ratification. Mrs. Nachalee Boonyakarnkul certified public accountant#
  3126, Mr. Niti Jungnitnirundr certified public accountant# 3809 and
  Miss Vipavee Boonyaprasit certified public accountant# 3096 of
  Deloitte Touche Tomatsu Jaiyos Co., Ltd. are recommended to be elected
  as the company’s independent auditor for 2008 with a stipend of Baht
  2,040,000 for the financial year.

  On behalf of the audit committee

Chaiyod Bunyagidj

(Mr. Chaiyod Bunyagidj)

Chairman of the audit committee

Pico (Thailand) Public Company Limited