2.2 Types of Business

  (1) Company’s Profile and its Significant Development

United Securities Public Company Limited was established by “ Sukanin”
Family on 1 April, 1971 under the name of “Silco Company Limited” to
perform securities business with an initial registered capital of Baht
500,000.

In 1989, the total business was sold to Wongkusolkit group and
Janvatanavit Group and the Company name was changed to “United
Securities Company Limited” . In the year 1991, the company was
designated broker no.38 by SET. The Company had transformed into Public
Company and was renamed accordingly to be United Securities Public
Company Limited. In 1994, we became a member of the Thai Bond Dealing
Center Member No.49.

In January, 2000, United Advisory Services Company Limited was
established in which the company had held 99.99% shares of the paid up
capital of Baht 10 million and United Advisory Services main business is
to provide Financial Advisory services.

In 2001, the company had issued IPO shares to be sold to the general
public which changed the Company’s Registered Capital to Baht
304,373,570 and all fully paid up with the total shares of 60,874,714
ordinary shares at Baht 5 par value. On 8 August, 2001, the company had
listed its shares in the Stock Exchange of Thailand and adopted the
abbreviation name as “US”.

In the year 2002, shareholders’ meeting was called and had approved a
new capital increase of a total of 555.62 million Baht or a total of
111.12 million shares at 5 Baht par value by which 30.437 million shares
were allocated to the existing shareholders in the ratio of 2 old shares
to one new share and the shareholders were also eligible to receive a
warrant (US-W1) in the ratio of 1 common share receive 2 warrants for
free. Another 15.31 million shares were allocated by way of Private
Placement and the rest 65.3 million were reserved for the conversion of
US-W1 of which 60.87 million shares were for the conversion by the
existing shareholders and 4.5 million shares were for the conversion by
the employees under ESOP scheme. Therefore, in June 2002, the Company’s
registered capital was 860 million Baht and the paid up capital had
increased to 533.12 million Baht. US-W1 was registered in the SET on 14
October, 2002.

At the end of November, 2002, the first conversion date of US-W1 to
common share, a total of 0.77 million warrants had been converted into
the same amount of common shares at the price of 5 Baht per share and
therefore, increased the Company’s paid up capital to be 537 million
Baht.

Consequently, toward the end of the year 2003, the paid up capital of
the Company became 580.6 million Baht or 116.1 shares after the 2^(nd)
year conversion of US-W1 to US common shares.

On 11 September, 2003, the Board of Directors had a resolution to buy up
the total shares of Siam Chaisri Co.,Ltd. From CNT Holdings Co.,Ltd.
(the subsidiary company of Christiani & Nielsen Co.,Ltd) to become
another subsidiary of the Company in addition to United Advisory
Services Co.,Ltd in order to expand Financial Advisory business of the
Company at the price of 3.3 million bath which the Company holds 100%
shares and upon the resolution from the shareholders toward the end of
the year 2003, Siam Chaisri Co., Ltd. was on the process of decreasing
its registered and paid up capital from 137.97 million Baht to 40
million bath and had changed its office to 6^(th) floor of Thanapoom
Tower Bldg., New Petchburi Road, Bangkok. In addition, the Company also
acquired the Financial Advisory License from SEC since 22 December,
2003.

(2) The Company’s Business

The Company’s business was done under securities license to perform 4
types of securities businesses, i.e. Securities Brokerage, Securities
Trading, Investment Advisory and Underwriting business. As at 31
December 2003, the Company has altogether 4 branches - Rangsit,
Nakornsawan, Nakornpathom and Haad Yai.

As for the Company’s subsidiary, apart from United Advisory Services
Company Limited (UAS), the Company had set up an additional subsidiary
company, i.e. Siam Chaisri Co.,Ltd. to undertake Financial Advisory
Services Business.

(3) Income Structure of the Company and its Subsidiary

+----------------------------+------+--------+-----+-----+-----+-----+
| Income                     | Acqu | % of   | 31  |     | 31  |     |
|                            | ired |        | De  |     | De  |     |
|                            |      |        | cem |     | cem |     |
|                            |      |        | ber |     | ber |     |
|                            |      |        | 2   |     | 2   |     |
|                            |      |        | 002 |     | 003 |     |
+----------------------------+------+--------+-----+-----+-----+-----+
|                            | by   | shareh | M   | %   | M   | %   |
|                            |      | olding | ill |     | ill |     |
|                            |      |        | ion |     | ion |     |
|                            |      |        |     |     |     |     |
|                            |      |        | (Ba |     | (Ba |     |
|                            |      |        | ht) |     | ht) |     |
+----------------------------+------+--------+-----+-----+-----+-----+
| 1. Securities Business     | US   | -      |     |     |     |     |
| Income                     |      |        |     |     |     |     |
+----------------------------+------+--------+-----+-----+-----+-----+
| Brokerage Fees             |      |        | 247 | 78  | 498 | 79  |
|                            |      |        | .84 | .74 | .65 | .67 |
+----------------------------+------+--------+-----+-----+-----+-----+
| Fee and Service            |      |        | *57 | 18  | **6 | 9   |
|                            |      |        | .47 | .26 | 2.5 | .99 |
+----------------------------+------+--------+-----+-----+-----+-----+
| Gain(loss) on Trading in   |      |        | -2  | -0  | 43  | 6   |
| Securities                 |      |        | .24 | .71 | .26 | .91 |
+----------------------------+------+--------+-----+-----+-----+-----+
| Interest & dividend on     |      |        | 8   | 2   | 11  | 1   |
| securities investment      |      |        | .85 | .81 | .39 | .82 |
+----------------------------+------+--------+-----+-----+-----+-----+
| Interest on loan           |      |        | 1   | 0   | 9.2 | 1   |
|                            |      |        | .79 | .57 |     | .47 |
+----------------------------+------+--------+-----+-----+-----+-----+
| Securities Business Income |      |        | 313 | 99  | 62  | 99  |
|                            |      |        | .71 | .67 | 5.0 | .86 |
+----------------------------+------+--------+-----+-----+-----+-----+
| 2. Other Income            | US   | -      | 1   | 0   | 0   | 0   |
|                            |      |        | .03 | .33 | .89 | .14 |
+----------------------------+------+--------+-----+-----+-----+-----+
| Total Income               |      |        | 314 | 100 | 625 | 100 |
|                            |      |        | .74 | .00 | .89 | .00 |
+----------------------------+------+--------+-----+-----+-----+-----+

Remark * inclusive of Financial Advisory Fee income from UAS of Baht
38.78 Million

** inclusive of Financial Advisory Fee Income from UAS of Baht 42.18
Million

  (4) The Company’s Objectives

The Objectives of the Company and its subsidiary are to focus on 4
groups of businesses namely Securities Brokerage, Research, Investment
Banking and Securities Trading which in 2004 is forecast to have the
following income earning structure:

1. Securities Brokerage Income 77.3%

2. Investment Banking Income 11.3%

3. Securities Trading Income 9.8%

4. Interest on Margin Loans Income 1.6%

As the economics and the stock market situations were recovering and the
brokerage fee or commission was fixed to the minimum rate of 0.25%, the
Company was enable to acquire additional marketing team to help increase
its brokerage fee income. At the same time, the Company still emphasizes
on the Financial Advisory and the debt instrument trading and
underwriting business which were less risky. The Company, therefore,
focuses on providing a “one-stop-service” to the customers and
developing personnel’s proficiency. Consequently, in 2003, the brokerage
fee income had increased to Baht 498million, the income from Financial
Advisory and Underwriting fees was Baht 62 million and a profit from
securities trading of Baht 43 million.