2. BUSINESS DESCRIPTION

2.1 Company History

  1980: Bumrungrad Hospital ( “the Company”) was the first private
  hospital to open in central Bangkok with a capacity of 220 beds. The
  Hospital saw continuous growth and in 1989, the Company became a
  listed company on the Stock Exchange of Thailand.

  1997: The Hospital opened the new building with capacity of 554 beds.

  1999: Bumrungrad Hospital received ISO 9002 certification and was the
  first private hospital in Thailand to receive Thai Hospital
  Accreditation (HA).

  2000: The Company voluntarily requested for the suspension of the
  trading of its shares on the SET, as the Company was in the process of
  negotiating with its creditors on the debt restructuring. In August of
  the same year, the Company successfully completed its debt
  restructuring.

  2001: With its commitment to being the leader in the quality, the
  Hospital received ISO 14001 standard for its environmental management,
  and was the first hospital in Asia to receive ISO 9001:2000
  accreditation. In addition, it was the first hospital to receive a
  renewal of Thai Hospital Accreditation, making it the first hospital
  in Thailand to have received all three standards at the same time.
  Regarding business expansion, the Company saw the opportunity to
  expand into the “preventive medicine” segment, and opened Vitallife
  Corporation Limited (“Vitallife”), which commenced its operation as an
  anti-aging clinic on 28 August 2001.

  2002: The Company continued to expand its services for international
  patient, and formally opened the International Patient Center to
  accommodate the increasing demand of international patients. In
  addition, the Company launched a business unit, BH International or
  BHI, with the objective at that time to provide management and
  consultancy services, and hospital planning and design services to
  hospitals in the region. At present, BHI is operated under Bumrungrad
  International Limited (“BIL”), a subsidiary of the Company. In
  addition, in the same year, Bumrungrad Hospital was the first hospital
  in Asia to receive the highly prestigious international standard
  hospital accreditation by the US-based Joint Commission on
  International Accreditation (“JCIA”). JCIA is an organization under
  Joint Commission on Accreditation of Healthcare Organization (“JCAHO”)
  with the objective to improve the quality of patient care worldwide
  through its international consultation and accreditation.

  2003: The Company succeeded in transferring its securities to the
  Healthcare Service Sector and the Company’s shares commenced trading
  on the SET again on 29 October 2003. In addition, the Company started
  its expansion plan by building a new outpatient facility to
  accommodate the increase in demand.

  2004: The Company reduced its par value from Baht 10 per share to Baht
  5 per share and used all the reduced paid-up share capital to settle
  against retained loss. In addition, the Company changed its par value
  from Baht 5 per share to Baht 1 per share (share split). On the
  international expansion, BHI was transferred to be under the
  responsibility of Bumrungrad International Limited (BIL), the
  Company’s 100% subsidiary. BIL’s policy was changed from providing
  consulting and management services to investments in hospitals in the
  region.

  2005: BIL invested a 43.25% stake in Asian Hospital Inc. (AHI) which
  is the operator of 258-bed private hospital in Manila, the
  Philippines.

  2006: BIL invested a 49% stake in Bumrungrad Hospital Dubai LLC, the
  operator of a private hospital in Dubai, United Arab Emirates. The
  investment size is expected to be Baht 388 million, of which BIL has
  paid the initial investment of Baht 25.8 million. The hospital is
  currently under construction and is expected to be operational in the
  beginning of 2009. In 2006, BIL increased its capital through an
  issuance of 5,764,701 new shares to strategic partners, Temasek,
  Istithmar and Bangkok Bank Pcl.. As a result, the Company’s
  shareholding in BIL was decreased from 100% to 51%.

  For the expansion of the Bangkok facility, the Company finished the
  construction of the new Bumrungrad International Clinic in 2006, and
  opened the health screening center on the 11^(th) floor and the
  parking in the beginning of 2007.

2.2 Business Overview 

  Corporate structure:

[]

  Notes:

  * As at 31 December 2006

  ** L.S. Cleaning Co., Ltd., the Company’s previous 25% subsidiary,
  registered the liquidation with the Ministry of Commerce on 22 May
  2006.

  Bumrungrad Hospital Public Company Limited (“the Company”) operates a
  private hospital business in Bangkok with capacity of 554 beds and
  3,500 outpatients per day. The Company is one of the leading
  healthcare providers in Thailand and in the Southeast Asian region,
  providing complete healthcare services for both outpatients and
  inpatients.

  The Company has always emphasized the importance of quality healthcare
  and experienced physicians and staff. The Company is the first
  hospital in Asia to receive the US standard accreditation from Joint
  Commission International Accreditation (JCIA).

  The Company is expanding and upgrading its Bangkok facilities over the
  next 5 years to accommodate the increasing demand for private
  healthcare. The expansion will ultimately increase the Company’s
  ability to service patients to 650 beds and 6,000 outpatients per day,
  almost doubling its current capacity. In addition, the Company is
  looking to expand its operations overseas through its 51% subsidiary,
  Bumrungrad International Limited (BIL). Currently, BIL has two
  investments, one in Asian Hospital Inc. in the Philippines, which is
  currently in operation, and the other investment in Bumrungrad
  Hospital Dubai LLC, which is currently under construction. BIL is
  aggressively looking for other healthcare opportunities in the region.

  The Company has three subsidiaries, including 100% shareholding in
  Bumrungrad Medical Center Limited, 100% in Vitallife Corporation
  Limited and 51% in Bumrungrad International Limited and a 14%
  investment in Global Care Solutions S.A.

  Bumrungrad Medical Center Limited (“BMC”) is the owner of the existing
  hospital building, which is leased to the Company.

  Vitallife Corporation Limited (“Vitallife”) is a pioneer in wellness
  and anti-aging which provides preventive care services targeted at
  health-conscious individuals. The Vitallife program brings together
  experienced medical professionals and world-class technologies to
  provide customers with a customized exercise programs, nutrition
  plans, and food and vitamin supplements for healthy living.

  Bumrungrad International Limited (“BIL”) is the Company’s
  international investment arm. BIL’s policy is to enter into management
  contracts only when BIL has an equity stake with management control,
  or there is an evident pathway towards an equity stake. BIL currently
  has 2 investments: a 43% stake in Asian Hospital, Inc. in the
  Philippines and 49% investment in Bumrungrad Hospital Dubai LLC in the
  United Arab Emirates.

  Global Care Solutions S.A. (“GCS”) is a healthcare software
  development company headquartered in Luxemburg.

2.3 Revenue Structure

  Unit: Bt Million

  -------------------------------------------------------------------------------------------------
  Product line Operate by      % Shareholding 2006              2005              2004      
  / Business                   by Company                                                   
  Group                                                                                     
  ------------ --------------- -------------- --------- ------- --------- ------- --------- -------
                                              Revenue   %       Revenue   %       Revenue   %

  Healthcare   Bumrungrad                     7,572     95.9    6,586     96.8    2,482     42.7
               Hospital Pcl.                                                                

  Healthcare   Bumrungrad      100.00         -         -       -         -       3,167     54.5
               Medical Center                                                               
               Ltd.                                                                         

  Healthcare   Vitallife       100.00         78        1.0     61        0.8     37        0.7
               Corporation                                                                  

  Total                                       7,650     96.9    6,647     97.6    5,686     97.9
  Healthcare                                                                                

  Hospital     Bumrungrad      51.00          57        0.7     7         0.1     -         -
  Management   International                                                                
               Ltd.                                                                         

  Total                                       57        0.7     7         0.1     -         -
  Hospital                                                                                  
  Management                                                                                

  Rental       Bumrungrad                     118       1.5     89        1.3     41        0.7
               Hospital Pcl.                                                                

  Rental       Bumrungrad      100.00         -         -       -         -       12        0.2
               Medical Center                                                               
               Ltd.                                                                         

  Total Rental                                118       1.5     89        1.3     53        0.9

  Others       Bumrungrad                     57        0.7     58        0.9     36        0.6
               Hospital Pcl.                                                                

  Others       Bumrungrad      100.00         1         -       -         -       34        0.6
               Medical Center                                                               
               Ltd.                                                                         

  Others       Bumrungrad      100.00         12        0.2     6         0.1     -         -
               International                                                                
               Ltd.                                                                         

  Total Others                                70        0.9     64        1.0     70        1.2

  Total                                       7,895     100.0   6,807     100.0   5,809     100.0
  -------------------------------------------------------------------------------------------------

2.4 Company’s Business Goal

  The Company has business goals as follows:

  1. Expansion and upgrade of the Bangkok facility in the next 5 years:
  With the continuous and rapid growth in number of patients, the
  Company expects to be under capacity constraint, particularly for its
  outpatient facilities in 1-2 years. The Company has therefore
  constructed a new 22-storey building to accommodate the rising demand.
  In addition, the Company is in the process of renovating and upgrading
  its existing hospital building, and has a plan to convert BH Tower
  building, which is currently used as serviced apartment for patient
  family and relatives, into inpatient beds.

  2. Be the leader of healthcare provider in the region: The Hospital is
  committed to maintain its leadership status in healthcare, both within
  Thailand and in the region, with continuous development in the quality
  of services.

  3. International expansion: The Company has the policy to extend its
  business abroad. Other than bringing international patients to
  Thailand, the Company has the plan to bring revenues into the country
  through its network of hospitals overseas. Bumrungrad International
  Limited (“BIL”) is responsible for conducting the feasibilities study
  and making investments in hospitals in target market.

  4. Opportunities in ancillary businesses: The Company is the first
  hospital to expand its business into a comprehensive wellness center
  specializing in anti-aging and preventive medicine. The Company looks
  for similar opportunities in order to support its hospital business.

  Progress on the business goals

  1. Expansion and upgrade of the Bangkok facility: The construction of
  the new Bumrungrad International Clinic was completed in 2006 and is
  partially open for service, including the first 10 floors of parking
  in 2005 and 11^(th) floor for the new health screening center in the
  beginning of 2007. The existing hospital building is in the process of
  renovation of inpatient beds and other facilities.

  2. Leader in medical service provider in the region: Bumrungrad
  Hospital has continuously developed its quality of service. As a
  result, the Hospital is a leader in terms of quality, as evidenced
  that the Hospital was the first private hospital to be accredited by
  HA, and the first in Asia to receive the international standard JCIA
  accreditation.

  3. International expansion: The Company made investments in hospitals
  in the region through BIL. In 2005, BIL invested in Asian Hospital
  Inc. in the Philippines and in 2006, BIL invested 49% in Bumrungrad
  Hospital Dubai LLC. In addition, BIL has prepared for additional
  investments in the region where in 2006, BIL increased its capital by
  issuing 5,764,701 new shares to strategic partners, Temasek, Istithmar
  and Bangkok Bank Pcl. As a result, BIL has raised Baht 885 million and
  has strategic partners who can introduce new investment opportunities
  and regional network.