12. Operating Results and Financial Standing

1) Summary of auditor’s opinion

The past unqualified opinion of the auditor for the 5 years between 2002
to 2006 confirms that the company’s financial statements, operating
results and accompanying cash flows conform materially to the generally
accepted accounting principles.

+-----+------------+------------------------------+---------+--------+
| Fis | Certified  | Auditor’s Office             | Regis   | Aud    |
| cal | Public     |                              | tration | itor’s |
| Y   | Accountant |                              | No.     | o      |
| ear |            |                              |         | pinion |
|     | (Thailand) |                              |         |        |
+-----+------------+------------------------------+---------+--------+
| 2   | Nachalee   | Deloitte touché Tohmatsu     | 3126    | Unqua  |
| 006 | Boo        | Jaiyos Audit Co., Ltd.       |         | lified |
|     | nyakarnkul |                              |         |        |
+-----+------------+------------------------------+---------+--------+
| 2   | Somporn    | Deloitte touché Tohmatsu     | 3709    | Unqua  |
| 005 | Dulyavit   | Jaiyos Co., Ltd.             |         | lified |
+-----+------------+------------------------------+---------+--------+
| 2   | Somporn    | Deloitte touché Tohmatsu     | 3709    | Unqua  |
| 004 | Dulyavit   | Jaiyos Co. Ltd.              |         | lified |
+-----+------------+------------------------------+---------+--------+
| 2   | Somporn    | Deloitte touché Tohmatsu     | 3709    | Unqua  |
| 003 | Dulyavit   | Jaiyos Co. Ltd.              |         | lified |
+-----+------------+------------------------------+---------+--------+
| 2   | Somporn    | Deloitte touché Tohmatsu     | 3709    | Unqua  |
| 002 | Dulyavit   | Jaiyos Co., Ltd.             |         | lified |
+-----+------------+------------------------------+---------+--------+

  2) Summary of operating results and financial standing

Summary of Pico’s operating results and financial condition for 2004 to
2006 are as follows:

  Thousand Baht

+-------------------------+------+-----+------+------+------+------+
|                         | Cons |     |      | Com  |      |      |
|                         | olid |     |      | pany |      |      |
|                         | ated |     |      |      |      |      |
+-------------------------+------+-----+------+------+------+------+
|                         | 2006 | 2   | 2004 | 2006 | 2005 | 2004 |
|                         |      | 005 |      |      |      |      |
+-------------------------+------+-----+------+------+------+------+
| Total Revenue           | 1    | 7   | 642  | 962  | 626  | 559  |
|                         | ,112 | 20, | ,003 | ,150 | ,313 | ,861 |
|                         | ,375 | 220 |      |      |      |      |
+-------------------------+------+-----+------+------+------+------+
| Total Expenses          | 1    | 6   | 578  | 873  | 575  | 503  |
|                         | ,017 | 62, | ,015 | ,737 | ,901 | ,089 |
|                         | ,772 | 664 |      |      |      |      |
+-------------------------+------+-----+------+------+------+------+
| Net Income              | 71   | 41, | 41   | 71   | 41   | 41   |
|                         | ,254 | 702 | ,167 | ,254 | ,702 | ,167 |
+-------------------------+------+-----+------+------+------+------+
| Earnings per share      | 0.62 | 0   | 0.39 | 0.62 | 0.36 | 0.39 |
|                         |      | .36 |      | 114  |      |      |
| Weighted average no. of | 114  |     | 102  | ,670 | 114  | 102  |
| ordinary share          | ,670 | 1   | ,652 |      | ,670 | ,652 |
|                         |      | 14, |      |      |      |      |
|                         |      | 670 |      |      |      |      |
+-------------------------+------+-----+------+------+------+------+
| Total Assets            | 527  | 4   | 369  | 487  | 391  | 337  |
|                         | ,333 | 29, | ,983 | ,802 | ,816 | ,191 |
|                         |      | 237 |      |      |      |      |
+-------------------------+------+-----+------+------+------+------+
| Total Liabilities       | 209  | 1   | 125  | 180  | 116  | 100  |
|                         | ,762 | 44, | ,998 | ,245 | ,413 | ,534 |
|                         |      | 869 |      |      |      |      |
+-------------------------+------+-----+------+------+------+------+
| Total company           | 317  | 2   | 243  | 307  | 275  | 236  |
| shareholder’s equity    | ,571 | 84, | ,986 | ,557 | ,403 | ,657 |
|                         |      | 368 |      |      |      |      |
+-------------------------+------+-----+------+------+------+------+
| Book value per share    | 2.78 | 2   | 2.38 | 2.68 | 2.40 | 2.31 |
| (Baht)                  |      | .48 |      |      |      |      |
+-------------------------+------+-----+------+------+------+------+
| No. of shares issued    | 115  | 1   | 65   | 115  | 115  | 65   |
| and outstanding as at   | ,000 | 15, | ,000 | ,000 | ,000 | ,000 |
| year end (Thousand      |      | 000 |      |      |      |      |
| shares)                 |      |     |      |      |      |      |
+-------------------------+------+-----+------+------+------+------+
|                         |      |     |      |      |      |      |
+-------------------------+------+-----+------+------+------+------+

  Remarks - Fiscal year of the company October 31

-   In 2006 there are 330,000 preferred shares and 114,669,980 common
      shares both at Baht 1 par value

-   The comparison of earning per share and book value per share 2005
      and 2006 of shares based on weighted average of shares

    Pico (Thailand) Public Company Limited

Balance Sheets

As at October 31

Thousand Baht

[TABLE]

  Pico (Thailand) Public Company Limited

Balance Sheets (Continued)

As at October 31

Thousand Baht

+-------------------------+------+-----+-------+-------+-------+-----+
|                         | Cons |     |       | The   |       |     |
|                         | olid |     |       | co    |       |     |
|                         | ated |     |       | mpany |       |     |
|                         |      |     |       | only  |       |     |
+-------------------------+------+-----+-------+-------+-------+-----+
|                         | 2006 | 2   | 2004  | 2006  | 2005  | 2   |
|                         |      | 005 |       |       |       | 004 |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Liabilities and       |      |     |       |       |       |     |
|   Shareholder’s Equity  |      |     |       |       |       |     |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Current Liabilities   |      |     |       |       |       |     |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Trade accounts        |      |     |       |       |       |     |
|   payable               |      |     |       |       |       |     |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Related parties       | 3    | 1,  | 1,344 | 7,099 | 4,358 | 5,  |
|                         | ,374 | 727 |       |       |       | 984 |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Others                | 104  | 80, | 6     | 9     | 6     | 52, |
|                         | ,372 | 817 | 8,093 | 2,491 | 4,246 | 523 |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Total trade accounts  | 107  | 82, | 6     | 9     | 6     | 58, |
|   payables              | ,746 | 544 | 9,437 | 9,590 | 8,604 | 507 |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Short-term loan from  | 1    | -   | -     | -     | -     | -   |
|   a related party-Joint | ,550 |     |       |       |       |     |
|   Venture               |      |     |       |       |       |     |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Current portion of    | 2    | 1,  | 1,731 | 2,199 | 1,830 | 1,  |
|   obligations under     | .214 | 831 |       |       |       | 731 |
|   hire-purchase         |      |     |       |       |       |     |
|   agreement             |      |     |       |       |       |     |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Amount due to related | 11   | 4,  | 7,142 | 1     | 4,573 | 7,  |
|   parties               | ,720 | 536 |       | 1,720 |       | 136 |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Amount due to a       | 974  | -   | -     | -     | -     | -   |
|   related party-Joint   |      |     |       |       |       |     |
|   Venture               |      |     |       |       |       |     |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Other current         |      |     |       |       |       |     |
|   liabilities           |      |     |       |       |       |     |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Accrued expenses      | 33   | 24, | 2     | 2     | 1     | 18, |
|                         | ,645 | 626 | 3,143 | 8,635 | 7,238 | 105 |
+-------------------------+------+-----+-------+-------+-------+-----+
|   The gross amount due  | 5    | 9,  | 5,696 | 1,821 | 5,455 | 1,  |
|   to customers for      | ,483 | 144 |       |       |       | 905 |
|   contract work         |      |     |       |       |       |     |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Deposits received     | 7    | 644 | 32    | 8,051 | 644   | 32  |
|   from customers        | ,434 |     |       |       |       |     |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Dividend payable      | -    | -   | 1,307 | -     | -     | -   |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Others                | 26   | 17, | 1     | 2     | 1     | 11, |
|                         | ,519 | 386 | 5,509 | 2,940 | 3,821 | 117 |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Others-Joint Venture  | 7    | -   | -     | -     | -     | -   |
|                         | ,187 |     |       |       |       |     |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Total Current         | 204  | 1   | 12    | 17    | 11    | 98, |
|   Liabilities           | ,472 | 40, | 3,997 | 4,956 | 2,255 | 533 |
|                         |      | 711 |       |       |       |     |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Non Current           |      |     |       |       |       |     |
|   Liabilities           |      |     |       |       |       |     |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Obligations under     | 5    | 4,  | 2,001 | 5,289 | 4,158 | 2,  |
|   hire-purchase         | ,290 | 158 |       |       |       | 001 |
|   agreements            |      |     |       |       |       |     |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Total Non-current     | 5    | 4,  | 2,001 | 5,289 | 4,158 | 2,  |
|   Liabilities           | ,290 | 158 |       |       |       | 001 |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Total liabilities     | 209  | 1   | 12    | 18    | 11    | 1   |
|                         | ,762 | 44, | 5,998 | 0,245 | 6,413 | 00, |
|                         |      | 869 |       |       |       | 534 |
+-------------------------+------+-----+-------+-------+-------+-----+

  Pico (Thailand) Public Company Limited

Balance Sheets (Continued)

As at October 31

Thousand Baht

+---------------------------------+-----+-----+-----+-----+-----+-----+
|                                 | Con |     |     | The |     |     |
|                                 | sol |     |     | c   |     |     |
|                                 | ida |     |     | omp |     |     |
|                                 | ted |     |     | any |     |     |
|                                 |     |     |     | o   |     |     |
|                                 |     |     |     | nly |     |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|                                 | 2   | 2   | 2   | 2   | 2   | 2   |
|                                 | 006 | 005 | 004 | 006 | 005 | 004 |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   Shareholders’ Equity          |     |     |     |     |     |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   Share Capital                 |     |     |     |     |     |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   330,000 preferred shares of   | 330 | 330 | 330 | 330 | 330 | 330 |
|   Baht 1 each                   |     |     |     |     |     |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   64,670,000 ordinary shares of | -   | -   | 64, | -   | -   | 64, |
|   Baht 1 each                   |     |     | 670 |     |     | 670 |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   114,670,000 ordinary shares   | 1   | 1   | -   | 1   | 1   | -   |
|   of Baht 1 each                | 14, | 14, |     | 14, | 14, |     |
|                                 | 670 | 670 |     | 670 | 670 |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|                                 | 1   | 1   | 65, | 1   | 1   | 65, |
|                                 | 15, | 15, | 000 | 15, | 15, | 000 |
|                                 | 000 | 000 |     | 000 | 000 |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   Issued and paid-up share      |     |     |     |     |     |     |
|   capital                       |     |     |     |     |     |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   330,000 preferred shares of   | 330 | 330 | 330 | 330 | 330 | 330 |
|   Baht1 each, fully paid        |     |     |     |     |     |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   64,670,000 ordinary shares of | -   | -   | 64, | -   | -   | 64, |
|   Baht 1 each, fully paid       |     |     | 670 |     |     | 670 |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   114,669,980 ordinary shares   | 1   | 1   | -   | 1   | 1   | -   |
|   of Baht 1 each, fully paid    | 14, | 14, |     | 14, | 14, |     |
|                                 | 670 | 670 |     | 670 | 670 |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|                                 | 1   | 1   | 65, | 1   | 1   | 65, |
|                                 | 15, | 15, | 000 | 15, | 15, | 000 |
|                                 | 000 | 000 |     | 000 | 000 |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
| Additional Paid-in Capital      |     |     |     |     |     |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
| Premium on ordinary shares, net | 1   | 1   | 1   | 1   | 1   | 1   |
|                                 | 01, | 01, | 01, | 01, | 01, | 01, |
|                                 | 250 | 250 | 250 | 250 | 250 | 250 |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   Land Revaluation Surplus      | 27, | 27, | 9,  | 27, | 27, | 9,  |
|                                 | 917 | 917 | 217 | 917 | 917 | 217 |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   Retained Earnings             |     |     |     |     |     |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   Appropriated                  | 10, | 7,  | 5,  | 10, | 7,  | 5,  |
|                                 | 713 | 150 | 065 | 713 | 150 | 066 |
|   Legal reserve                 |     |     |     |     |     |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   Unappropriated                | 52, | 24, | 56, | 52, | 24, | 56, |
|                                 | 677 | 086 | 124 | 677 | 086 | 124 |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   Total company shareholders’   | 3   | 2   | 2   | 3   | 2   | 2   |
|   equity                        | 07, | 75, | 36, | 07, | 75, | 36, |
|                                 | 557 | 403 | 656 | 557 | 403 | 657 |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   Minority Interest             | 10, | 8,  | 7,  | -   | -   | -   |
|                                 | 014 | 965 | 329 |     |     |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   Total shareholders’ equity    | 3   | 2   | 2   | 3   | 2   | 2   |
|                                 | 17, | 84, | 43, | 07, | 75, | 36, |
|                                 | 571 | 368 | 985 | 557 | 403 | 657 |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   Total Liabilities and         | 5   | 4   | 3   | 4   | 3   | 3   |
|   Shareholders’ Equity          | 27, | 29, | 69, | 87, | 91, | 37, |
|                                 | 333 | 237 | 983 | 802 | 816 | 191 |
+---------------------------------+-----+-----+-----+-----+-----+-----+

  Pico (Thailand) Public Company Limited

Statements of Income

For the years ended October 31

Thousand Baht

+----------------------------+------+------+-----+-----+-----+------+
|                            | Cons |      |     | The |     |      |
|                            | olid |      |     | c   |     |      |
|                            | ated |      |     | omp |     |      |
|                            |      |      |     | any |     |      |
|                            |      |      |     | o   |     |      |
|                            |      |      |     | nly |     |      |
+----------------------------+------+------+-----+-----+-----+------+
|                            | 2006 | 2005 | 2   | 2   | 2   | 2004 |
|                            |      |      | 004 | 006 | 005 |      |
+----------------------------+------+------+-----+-----+-----+------+
|   Revenues                 |      |      |     |     |     |      |
+----------------------------+------+------+-----+-----+-----+------+
|   Revenues from the        | 1    | 716  | 6   | 9   | 6   | 547  |
|   rendering of             | ,037 | ,499 | 39, | 49, | 11, | ,347 |
|                            | ,604 |      | 065 | 030 | 994 |      |
|   services                 |      |      |     |     |     |      |
+----------------------------+------+------+-----+-----+-----+------+
|   Revenues from the        | 71   | -    | -   | -   | -   | -    |
|   rendering of             | ,191 |      |     |     |     |      |
|                            |      |      |     |     |     |      |
|   services –Joint Venture  |      |      |     |     |     |      |
+----------------------------+------+------+-----+-----+-----+------+
|   Other income             | 3    | 3    | 2,  | 5,  | 4,  | 4    |
|                            | ,269 | ,278 | 094 | 409 | 216 | ,042 |
+----------------------------+------+------+-----+-----+-----+------+
|   Share of profits from    | 311  | 443  | 844 | 7,  | 10, | 8    |
|   investments              |      |      |     | 711 | 103 | ,472 |
|                            |      |      |     |     |     |      |
|   using the equity method  |      |      |     |     |     |      |
+----------------------------+------+------+-----+-----+-----+------+
|   Total revenues           | 1    | 720  | 6   | 9   | 6   | 559  |
|                            | ,112 | ,220 | 42, | 62, | 26, | ,861 |
|                            | ,375 |      | 003 | 150 | 313 |      |
+----------------------------+------+------+-----+-----+-----+------+
|   Expenses                 |      |      |     |     |     |      |
+----------------------------+------+------+-----+-----+-----+------+
|   Cost of the rendering of | 815  | 533  | 4   | 7   | 4   | 413  |
|   services                 | ,889 | ,995 | 66, | 45, | 72, | ,384 |
|                            |      |      | 926 | 086 | 309 |      |
+----------------------------+------+------+-----+-----+-----+------+
|   Cost of the rendering of | 45   | -    | -   | -   | -   | -    |
|   service                  | ,579 |      |     |     |     |      |
|                            |      |      |     |     |     |      |
|   –Joint Venture           |      |      |     |     |     |      |
+----------------------------+------+------+-----+-----+-----+------+
|   Selling and              | 155  | 128  | 1   | 1   | 1   | 89   |
|   administrative expenses  | ,917 | ,669 | 11, | 28, | 03, | ,705 |
|                            |      |      | 089 | 652 | 591 |      |
+----------------------------+------+------+-----+-----+-----+------+
|   Selling and              | 387  | -    | -   | -   | -   | -    |
|   administrative expenses  |      |      |     |     |     |      |
|                            |      |      |     |     |     |      |
|   –Joint Venture           |      |      |     |     |     |      |
+----------------------------+------+------+-----+-----+-----+------+
|   Total expenses           | 1    | 662  | 5   | 8   | 5   | 503  |
|                            | ,017 | ,664 | 78, | 73, | 75, | ,089 |
|                            | ,772 |      | 015 | 738 | 900 |      |
+----------------------------+------+------+-----+-----+-----+------+
|   Income Before Interest   | 94   | 57   | 63, | 88, | 50, | 56   |
|   Expenses and Income Tax  | ,603 | ,556 | 988 | 412 | 413 | ,772 |
+----------------------------+------+------+-----+-----+-----+------+
|   Interest expenses        | (    | (    | (   | (5  | (3  | (1,  |
|                            | 565) | 318) | 1,6 | 62) | 18) | 611) |
|                            |      |      | 53) |     |     |      |
+----------------------------+------+------+-----+-----+-----+------+
|   Income tax               | (20, | (12, | (1  | (1  | (   | (13, |
|                            | 233) | 899) | 7,9 | 6,5 | 8,3 | 994) |
|                            |      |      | 80) | 96) | 93) |      |
+----------------------------+------+------+-----+-----+-----+------+
|   Income After Income Tax  | 73   | 44   | 44, | 71, | 41, | 41   |
|                            | ,805 | ,339 | 355 | 254 | 702 | ,167 |
+----------------------------+------+------+-----+-----+-----+------+
|   Net Income of Minority   | (2,  | (2,  | (   | -   | -   | -    |
|   Interest                 | 551) | 637) | 3,1 |     |     |      |
|                            |      |      | 88) |     |     |      |
+----------------------------+------+------+-----+-----+-----+------+
|   Net income               | 71   | 41   | 41, | 71, | 41, | 41   |
|                            | ,254 | ,702 | 167 | 254 | 702 | ,167 |
+----------------------------+------+------+-----+-----+-----+------+
|   Basic earnings per share | 0.62 | 0.36 | 0   | 0   | 0   | 0.39 |
|                            |      |      | .39 | .62 | .36 |      |
+----------------------------+------+------+-----+-----+-----+------+
|   Weighted average number  | 115  | 115  | 1   | 1   | 1   | 102  |
|   of ordinary shares       | ,000 | ,000 | 02, | 15, | 15, | ,652 |
|                            |      |      | 652 | 000 | 000 |      |
+----------------------------+------+------+-----+-----+-----+------+

  Pico (Thailand) Public Company Limited

Statements of Cash flows

For the years ended October 31

Thousand Baht

+---------------------------+------+-----+------+------+------+------+
|                           | Cons |     |      | The  |      |      |
|                           | olid |     |      | com  |      |      |
|                           | ated |     |      | pany |      |      |
|                           |      |     |      | only |      |      |
+---------------------------+------+-----+------+------+------+------+
|                           | 2006 | 2   | 2004 | 2006 | 2005 | 2004 |
|                           |      | 005 |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Cash flows from         |      |     |      |      |      |      |
|   operating activities    |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Net income              | 71   | 41, | 41   | 71   | 41   | 41   |
|                           | ,254 | 702 | ,167 | ,254 | ,702 | ,167 |
+---------------------------+------+-----+------+------+------+------+
|   Items to reconcile net  |      |     |      |      |      |      |
|   income to net cash      |      |     |      |      |      |      |
|   flows                   |      |     |      |      |      |      |
|                           |      |     |      |      |      |      |
|   from operating          |      |     |      |      |      |      |
|   activities:             |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|                           |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Depreciation and        | 14   | 11, | 11   | 8    | 6    | 5    |
|   amortization of         | ,495 | 776 | ,504 | ,109 | ,349 | ,975 |
|   intangible assets       |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Doubtful accounts and   | 655  | 1,  | 1    | 228  | 702  | 1    |
|   bad debt                |      | 406 | ,969 |      |      | ,651 |
+---------------------------+------+-----+------+------+------+------+
|   Gain on sale of fixed   | (    | (   | 7    | (    | (    | (30) |
|   assets                  | 907) | 1,0 |      | 960) | 263) |      |
|                           |      | 20) |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Loss on writing off of  | 2    | 310 | 32   | 2    | 288  | 5    |
|   fixed assets            | ,631 |     |      | ,612 |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Unrealized gain on      | (22) | (   | (62) | (23) | -    | (42) |
|   exchange rate           |      | 18) |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Dividend received from  | -    | 337 | 403  | 4    | 6    | 1    |
|   investments using the   |      |     |      | ,498 | ,303 | ,932 |
|                           |      |     |      |      |      |      |
|   equity method           |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Share of profits from   | (    | (4  | (    | (7,  | (10, | (8,  |
|   investments using the   | 311) | 43) | 844) | 711) | 102) | 472) |
|                           |      |     |      |      |      |      |
|   equity method           |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Net income of minority  | 2    | 2,  | 3    | -    | -    | -    |
|   interest                | ,551 | 637 | ,188 |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Income from operations  | 90   | 56, | 57   | 78   | 44   | 42   |
|   before changes in       | ,346 | 687 | ,365 | ,007 | ,979 | ,187 |
|   operating assets and    |      |     |      |      |      |      |
|   liabilities             |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|                           |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Operating assets        |      |     |      |      |      |      |
|   (increase) decrease     |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Current investment –    |      | -   | -    |      | -    | -    |
|   investment in trading   |      |     |      |      |      |      |
|   security                |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Trade accounts          | (8,  | (1  | (23, | (16, | (11, | (12, |
|   receivable              | 471) | 2,4 | 741) | 888) | 992) | 661) |
|                           |      | 03) |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Amounts due from        | (    | 61  | 111  | 82   | 5    | 1    |
|   related parties         | 251) |     |      |      |      | ,583 |
+---------------------------+------+-----+------+------+------+------+
|   Inventories             | (96) | 285 | (    | (96) | 285  | (    |
|                           |      |     | 155) |      |      | 155) |
+---------------------------+------+-----+------+------+------+------+
|   The gross amount due    | (9,  | 13, | (45, | (9,  | 16   | (48, |
|   from customers for      | 959) | 982 | 970) | 619) | ,461 | 405) |
|                           |      |     |      |      |      |      |
|   contract work           |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Other current assets    | (22, | (   | (4,  | (25, | (5,  | (3,  |
|                           | 770) | 6,2 | 022) | 304) | 693) | 712) |
|                           |      | 67) |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Other current assets    | (9,  | -   | -    | -    | -    | -    |
|   -Joint Venture          | 880) |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Other non-current       | (    | 519 | (1,  | (    | 476  | (1,  |
|   assets                  | 155) |     | 734) | 105) |      | 727) |
+---------------------------+------+-----+------+------+------+------+
|   Operating liabilities   |      |     |      |      |      |      |
|   increase (decrease)     |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Trade accounts payable  | 25   | 13, | 17   | 31   | 10   | 10   |
|                           | ,224 | 106 | ,124 | ,008 | ,096 | ,939 |
+---------------------------+------+-----+------+------+------+------+
|   Amounts due to related  | 7    | (   | 1    | 7    | (2,  | 1    |
|   parties                 | ,188 | 2,6 | ,866 | ,150 | 563) | ,860 |
|                           |      | 06) |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Amounts due to related  | 974  | -   | -    | -    | -    | -    |
|   parties- Joint Venture  |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Accrued expenses        | 9    | 1,  | 2    | 11   | (    | 1    |
|                           | ,018 | 483 | ,934 | ,307 | 778) | ,272 |
+---------------------------+------+-----+------+------+------+------+
|   The gross amount due to | (3,  | 3,  | 1    | (3,  | 3    | 1    |
|   customers for contract  | 661) | 448 | ,017 | 633) | ,550 | ,233 |
|                           |      |     |      |      |      |      |
|   work                    |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Deposits received from  | 6    | 612 | (    | 7    | 612  | (    |
|   customers               | ,790 |     | 206) | ,407 |      | 206) |
+---------------------------+------+-----+------+------+------+------+
|   Other payable           | -    | -   | (4,  | -    | -    | (4,  |
|                           |      |     | 682) |      |      | 682) |
+---------------------------+------+-----+------+------+------+------+
|   Other current           | 6    | 1,  | 2    | 6    | 1    | 237  |
|   liabilities             | ,065 | 171 | ,499 | ,284 | ,862 |      |
+---------------------------+------+-----+------+------+------+------+
|   Other current           | 7    | -   | -    | -    | -    | -    |
|   liabilities – Joint     | ,187 |     |      |      |      |      |
|   Venture                 |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Net cash provided by    | 97   | 70, | 2    | 85   | 57   | (12, |
|   operating activities    | ,549 | 078 | ,406 | ,600 | ,300 | 237) |
+---------------------------+------+-----+------+------+------+------+

  Pico (Thailand) Public Company Limited

Statements of Cash flows (Continued)

For the years ended October 31

Thousand Baht

+----------------------------+-----+-----+-----+-----+-----+-------+
|                            | Con |     |     | The |     |       |
|                            | sol |     |     | c   |     |       |
|                            | ida |     |     | omp |     |       |
|                            | ted |     |     | any |     |       |
|                            |     |     |     | o   |     |       |
|                            |     |     |     | nly |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|                            | 2   | 2   | 2   | 2   | 2   | 2004  |
|                            | 006 | 005 | 004 | 006 | 005 |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash flows from          |     |     |     |     |     |       |
|   investing activities     |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash received from       | -   | 2,  | -   | -   | 2,  | -     |
|   deposit at bank used as  |     | 000 |     |     | 000 |       |
|   collateral               |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash payment from        | -   | -   | (3  | -   | -   | -     |
|   deposit at bank used as  |     |     | 10) |     |     |       |
|   collateral               |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash payment from        | (   | -   | -   | -   | -   | -     |
|   deposit at bank used as  | 4,9 |     |     |     |     |       |
|   collateral – Joint       | 20) |     |     |     |     |       |
|   Venture                  |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash payment for         | (3  | (1  | (   | (2  | (   | (1    |
|   purchases of fixed       | 7,1 | 0,6 | 7,1 | 3,5 | 7,8 | ,509) |
|                            | 04) | 45) | 41) | 53) | 72) |       |
|   assets                   |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash payment for         | (4  | (3  | (   | (2  | (3  | (1    |
|   purchase of              | 08) | 28) | 1,3 | 37) | 25) | ,244) |
|                            |     |     | 55) |     |     |       |
|   Intangible assets        |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash payment for capital | -   | -   | -   | (1  | -   | -     |
|   investment in            |     |     |     | 60) |     |       |
|   Joint-Venture            |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Purchase of investments  | (   | -   | -   | (   | -   | -     |
|   in associated companies  | 4,3 |     |     | 4,3 |     |       |
|                            | 50) |     |     | 50) |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Purchase of investment   | (2  | (4  | (6  | -   | -   | (250) |
|   in other                 | 80) | 50) | 10) |     |     |       |
|                            |     |     |     |     |     |       |
|   company                  |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash received from sale  | -   | -   | 197 | -   | -   | 197   |
|   of investment            |     |     |     |     |     |       |
|                            |     |     |     |     |     |       |
|   in trading security      |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Short-term loan to a     | (   | -   | -   | (   | -   | -     |
|   related company          | 5,0 |     |     | 8,4 |     |       |
|                            | 55) |     |     | 25) |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Proceeds from short –    | -   | -   | -   |     | 300 | 250   |
|   term loan to a related   |     |     |     |     |     |       |
|   parties                  |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash received from sale  | 1,  | 1,  | 97  | 1,  | 806 | 61    |
|   of fixed assets          | 068 | 992 |     | 050 |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash received from sale  | -   | -   | 250 | -   | -   | 250   |
|   of investment            |     |     |     |     |     |       |
|                            |     |     |     |     |     |       |
|   in other company         |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash payment for         | -   | -   | -   | -   | -   | (300) |
|   short-term loan to a     |     |     |     |     |     |       |
|                            |     |     |     |     |     |       |
|   related company          |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Net cash used in         | (5  | (   | (   | (3  | (   | (2    |
|   investing activities     | 1,0 | 7,4 | 8,8 | 5,6 | 5,0 | ,545) |
|                            | 49) | 31) | 72) | 75) | 91) |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash Flows from          |     |     |     |     |     |       |
|   Financing Activities     |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash received from       | -   | -   | 5,  | -   | -   | 5,000 |
|   long-term loan           |     |     | 000 |     |     |       |
|                            |     |     |     |     |     |       |
|   from financial           |     |     |     |     |     |       |
|   institution              |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Proceed from issuance of | -   | -   | 1   | -   | -   | 15    |
|   share capital            |     |     | 51, |     |     | 1,250 |
|                            |     |     | 250 |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash payment for         | (   | (   | (   | (   | (   | (2    |
|   obligations under        | 2,9 | 1,7 | 3,7 | 2,8 | 1,7 | ,902) |
|                            | 17) | 93) | 30) | 57) | 93) |       |
|   hire-purchase agreements |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Dividends paid           | (3  | (2  | (7  | (3  | (2  | (72   |
|                            | 9,1 | 1,6 | 2,0 | 9,1 | 1,6 | ,060) |
|                            | 00) | 55) | 60) | 00) | 55) |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Dividends of subsidiary  | (   | (   | (2  | -   | -   | -     |
|   paid to                  | 1,5 | 2,3 | 01) |     |     |       |
|                            | 02) | 07) |     |     |     |       |
|   minority shareholders    |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash payment for         | -   | -   | (1  | -   | -   | (14   |
|   long-term loan           |     |     | 4,8 |     |     | ,821) |
|                            |     |     | 21) |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Short-term loan from a   | 1,  | -   | -   | -   | -   | -     |
|   relate company-Joint     | 550 |     |     |     |     |       |
|   Venture                  |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Net cash used in         | (4  | (2  | 65, | (4  | (2  | 6     |
|   financing activities     | 1,9 | 5,7 | 438 | 1,9 | 3,4 | 6,467 |
|                            | 69) | 55) |     | 57) | 48) |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Net increase in cash and | 4,  | 36, | 58, | 7,  | 28, | 5     |
|   cash equivalents         | 531 | 892 | 972 | 968 | 761 | 1,685 |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash and cash            | 1   | 95, | 36, | 1   | 74, | 2     |
|   equivalents balance as   | 32, | 243 | 271 | 03, | 491 | 2,806 |
|   at beginning             | 135 |     |     | 252 |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash and cash            | 1   | 1   | 95, | 1   | 1   | 7     |
|   equivalents balance as   | 36, | 32, | 243 | 11, | 03, | 4,491 |
|   at ending                | 666 | 135 |     | 220 | 252 |       |
+----------------------------+-----+-----+-----+-----+-----+-------+

Comparative financial Ratios 2004-2006

Financial ratios

+---------------------------+-------+------+-----+------+-----+-----+
|                           | Co    |      |     | The  |     |     |
|                           | nsoli |      |     | com  |     |     |
|                           | dated |      |     | pany |     |     |
|                           |       |      |     | only |     |     |
+---------------------------+-------+------+-----+------+-----+-----+
|                           | 2006  | 2005 | 2   | 2006 | 2   | 2   |
|                           |       |      | 004 |      | 005 | 004 |
+---------------------------+-------+------+-----+------+-----+-----+
|   Liquidity Ratios        |       |      |     |      |     |     |
+---------------------------+-------+------+-----+------+-----+-----+
|   Current ratio (time)    | 1.96  | 2.39 | 2   | 2.01 | 2   | 2   |
|                           |       |      | .39 |      | .52 | .61 |
+---------------------------+-------+------+-----+------+-----+-----+
|   Quick ratio (time)      | 1.94  | 1.72 | 1   | 2.00 | 1   | 1   |
|                           |       |      | .57 |      | .74 | .58 |
+---------------------------+-------+------+-----+------+-----+-----+
|   Cash current ratio      | 0.57  | 0.53 | 0   | 0.60 | 0   | -0  |
|   (time)                  |       |      | .02 |      | .54 | .13 |
+---------------------------+-------+------+-----+------+-----+-----+
|   Trade payables turnover | 9.50  | 6.65 | 7   | 9.44 | 7   | 7   |
|   (time)                  |       |      | .22 |      | .03 | .37 |
+---------------------------+-------+------+-----+------+-----+-----+
|   Receivables turnover    | 39.78 | 5    | 51  | 4    | 51  | 49  |
|   (days)                  |       | 4.16 |     | 0.63 |     |     |
+---------------------------+-------+------+-----+------+-----+-----+
|   Profitability Ratios    |       |      |     |      |     |     |
+---------------------------+-------+------+-----+------+-----+-----+
|   Gross operating profit  | 22.31 | 2    | 26  | 2    | 22  | 24  |
|   (%)                     |       | 5.47 | .94 | 1.49 | .82 | .47 |
+---------------------------+-------+------+-----+------+-----+-----+
|   Operating profit (%)    | 8.53  | 8.03 | 10  | 9.32 | 8   | 10  |
|                           |       |      | .01 |      | .24 | .37 |
+---------------------------+-------+------+-----+------+-----+-----+
|   Net profit (%)          | 6.41  | 5.82 | 6   | 7.41 | 6   | 7   |
|                           |       |      | .44 |      | .81 | .52 |
+---------------------------+-------+------+-----+------+-----+-----+
|   Net Return on           | 23.67 | 1    | 22  | 2    | 16  | 23  |
|   shareholders’ equity,   |       | 5.79 | .50 | 4.45 | .29 | .33 |
|                           |       |      |     |      |     |     |
|   (ROE) (%)               |       |      |     |      |     |     |
+---------------------------+-------+------+-----+------+-----+-----+
|   Operating Efficiency    |       |      |     |      |     |     |
+---------------------------+-------+------+-----+------+-----+-----+
|   Return on Assets (%)    | 14.90 | 1    | 13  | 1    | 11  | 14  |
|                           |       | 0.44 | .61 | 6.20 | .44 | .93 |
+---------------------------+-------+------+-----+------+-----+-----+
|   Return on Fixed Assets  | 78.41 | 5    | 67  | 6    | 68  | 85  |
|   (%)                     |       | 7.94 | .04 | 4.49 | .84 | .17 |
+---------------------------+-------+------+-----+------+-----+-----+
|   Assets Turnover (time)  | 2.33  | 1.80 | 2   | 2.19 | 1   | 2   |
|                           |       |      | .12 |      | .71 | .03 |
+---------------------------+-------+------+-----+------+-----+-----+
|   Key Financial           |       |      |     |      |     |     |
|   Indicators              |       |      |     |      |     |     |
+---------------------------+-------+------+-----+------+-----+-----+
|   Leverage (Debt to       | 0.66  | 0.51 | 0   | 0.59 | 0   | 0   |
|   Equity) (time)          |       |      | .52 |      | .42 | .42 |
+---------------------------+-------+------+-----+------+-----+-----+
|   Interest Coverage       | 2     | 26   | 38  | 18   | 207 | 35  |
|   (time)                  | 09.46 | 2.16 | .70 | 2.84 | .58 | .26 |
+---------------------------+-------+------+-----+------+-----+-----+
|   Book Value per share    | 2.78  | 2.48 | 2   | 2.68 | 2   | 2   |
|   (baht)                  |       |      | .38 |      | .40 | .31 |
+---------------------------+-------+------+-----+------+-----+-----+
|   Earning per share (EPS) | 0.62  | 0.36 | 0   | 0.62 | 0   | 0   |
|   (baht)                  |       |      | .39 |      | .36 | .39 |
+---------------------------+-------+------+-----+------+-----+-----+

3) Explanation and Analysis

-   Operating results

The overall 2006 operation was affected by both external and domestic
events and developments. Some of these are the continued fluctuating oil
prices, bird flu and the unpredictable U.S. economy with the resultant
unsettled interest and foreign exchange rates. The domestic disturbances
are the political tension, continued and unresolved southern unrest and
the severe flooding. Despite these potentially adverse conditions we
have managed to come through with one of our best years ever with total
consolidated income at Baht 1,112 million and net profit after taxes of
Baht 71 million, an increase of 54% and 71% over the previous year.

Revenue from services rendered

The consolidated revenue from services for 2006 amounted to Baht 1,109
million, an increase of Baht 392 million or 55% over the previous year.

- The revenue from joint ventures totaled Baht 71 million. In 2006 we
participated in joint ventures with Ek Kha Thai Co., Ltd., Pico
(Thailand) Public Co., Ltd. and Bewcon Co., Ltd. These were for specific
transactions for the design and realization of display for the second
children museum which will be completed February 2007,

  - The revenue from our traditional business grew by Baht 322 million
  to total Baht 1,037 million (45%). Increases came from all of our
  product segments such as event marketing and knowledge communication
  and from all customer segments both private and public sector such as
  the automobile, telecommunication, energy and financial institutions.
  The increased turnover is consistent and evenly distributed. The
  quarterly turnover for the current year is consistently higher than
  the corresponding interval of the previous year.

-   Event marketing revenue increased by 26% to Baht 636 million.

-   Knowledge communication projects increased by 130% to Baht 236
    million.

-   Other service income increased by 50% to Baht 165 million.

Gross Profit Margin

Our operating profit for the year is at 22.3% due primarily to the
changing in scope of services in both the event marketing and knowledge
communication. Additionally the project size in monetary terms were
relatively high especially those from the public budget. Our gross
margin therefore is slightly lower due the changes noted.

.

Selling and General Administrative expenses

The selling, general and administrative expenses increased 21% of
turnover to Baht 156 million. Increases came principally from
organizational restructure, major office renovation, substantial
investment in human resource development and the improvement in staff
welfare and benefits. These developments were undertaken to prepare us
for future growth and expansion. In connection with the office
renovation we have carefully examined the existing and useable assets
and wrote off Baht 2.8 million.

Net Income

Consolidated net profit amounted to Baht 71 million, an increase of Baht
29 million or 71% relative to the previous year.

-   Financial Standing

Assets

Consolidated assets of Baht 527 million consist of:

- Baht 116 in cash or 22% of total assets representing an increase of
107%. This surplus will increase the operational flexibility.

- Other current assets consist of short term investments, trade
receivables and accrued income amounting to Baht 286 million or 54% of
total assets. This represents a 30% increase which is in line with the
total revenue growth and the recognition of income for works completed.

- Long term assets consist of land, buildings, equipments and other
investments of Baht 125 million or 24% of total assets. The 34% increase
in long term assets is attributed mainly to the value of the major
renovation undertaken in 2006.

-   Sources of Fund

The significant increase in revenue resulted in a corresponding increase
in trade receivables which was financed internally by trade payables and
equity with no bank debt. Total liabilities of Baht 210 million consist
mostly of current obligations with only Baht 5 million in long term
obligation. Total shareholder’s equity amounts to Baht 317 million
resulting in the long term debt to equity at a respectable 0.02 and
overall leverage at 0.66 representing a slightly rise due to the revenue
increase. The operation continues to be very liquid with the current
position at 1.96.

.

  Liquidity and cash generation

Internal cash generation continues to be strong and consistent. Net
operation generated cash improved by Baht 28 million resulting from
increased trade payables. Non operating needs were office renovation
(Baht 37 million), investment in associated companies (Baht 4 million)
and dividend payment (Baht 39 million). Net consolidated cash at year
end 2006 was Baht 137 million consisting of Baht 116 million in cash and
near cash and Baht 21 million in short term investment in government
bonds.

Contingent liabilities

As of 31 October 2006 total bank guarantees issued on our behalf by
commercial banks amounted to Baht 66.8 million or an increase of Baht
20.2 million. This is as expected given the substantial increase in new
and larger projects acquired.