3. DESCRIPTION OF EACH BUSINESS LINE

3.1 Product Description 

  Bumrungrad Hospital Public Company Limited (“the Company”)

  The Company is the operator of Bumrungrad International Hospital,
  Bangkok, which is the main revenue contributor. The Company’s revenue
  from hospital operations is 87.4% of total revenues. The hospital is
  supported by the advanced Hospital 2000 Medical Information System
  (“H2000”).

  The Hospital’s Services:

  The services of Bumrungrad International Hospital, Bangkok can be
  detailed as follows:

  1. Outpatient service has 34 outpatient clinics with 150 examination
  rooms, and capacity to service 3,500 patients per day, with the
  following details:

+---------------------------------+------------------------------------+
|   • Allergy Center              |   • Horizon Regional Cancer Center |
+---------------------------------+------------------------------------+
|   • Aviation Medicine Center    |   • Medical Center                 |
+---------------------------------+------------------------------------+
|   • Behavioral Health Center    |   • Neurology Center               |
+---------------------------------+------------------------------------+
|   • Breast Screening Center     |   • Orthopedic Center              |
+---------------------------------+------------------------------------+
|   • Children’s Center           |   • Pathology Center               |
+---------------------------------+------------------------------------+
|   • Dental Center               |   • Physiotherapy Center           |
+---------------------------------+------------------------------------+
|   • Diabetes Center             |   • Plastic Surgery Center         |
+---------------------------------+------------------------------------+
|   • Dialysis Center             |   • Pulmonary Physiology Center    |
+---------------------------------+------------------------------------+
|   • Digestive Disease Center    |   • Radiology Center               |
+---------------------------------+------------------------------------+
|   • Early Intervention Center   |   • Rehabilitation Center          |
+---------------------------------+------------------------------------+
|   • Emergency Center            |   • Skin Center                    |
+---------------------------------+------------------------------------+
|   • Endoscopic Center           |   • Skin Laser Center              |
+---------------------------------+------------------------------------+
|   • Eye and ENT Center          |   • Sleep Disorders Center         |
+---------------------------------+------------------------------------+
|   • Eye Laser Refraction Center |   • Stroke Center                  |
+---------------------------------+------------------------------------+
|   • Fertility Center            |   • Surgical Center                |
+---------------------------------+------------------------------------+
|   • Health Screening Center     |   • Urology Center                 |
+---------------------------------+------------------------------------+
|   • Heart Center                |   • Women’s Center                 |
+---------------------------------+------------------------------------+

  2. Inpatient service has 554 beds, of which 26 are adult intensive
  care beds, 14 are cardiac care beds, 9 are pediatric intensive care
  beds and 5 are level III neonatal intensive care beds. As at 31
  December 2007, the hospital has 458 beds in operation.

  3. Emergency care and special facilities: The Company has 24-hour
  emergency care including emergency cardiac catheterization. In
  addition, the Company has 19 operating theaters fully equipped with
  modern medical equipment, 2 cardiac catheterization laboratories and 2
  cardiac operating theaters. The facility is fully equipped with MRI,
  CT and lithotripsy and 64-slice CT scanner. It also offers nuclear
  medicine and surgical navigation system.

  In 2007, the Company treated a total of over one million patients. The
  revenue contribution by inpatient and outpatient in 2007 are as
  follows:

  Inpatient and outpatient (% of total revenue)

  -----------------------------------------------------------------------
  []

  -----------------------------------------------------------------------

  Data as at 31 December 2007

  International Services:

  The Company has a strong and successful track record in increasing its
  presence in the international market. It has an International Patient
  Services Center to facilitate and accommodate international patients.
  The services offered include interpreters, international insurance
  coordination and international medical coordinators, referral center,
  email correspondences, visa extension counter, embassy assistance,
  airport reception and travel assistance. In addition, the Company
  operates two serviced apartments: Bumrungrad Hospital Residence (BH
  Tower) with 74 fully serviced apartments connected to the hospital and
  Bumrungrad Hospitality Suites with 51 fully serviced apartments for
  patients and families. The Company also has seventeen overseas
  representative offices in fifteen countries.

  In 2007, Bumrungrad International Hospital, Bangkok treated
  approximately 430,000 international patients from over 190 countries.
  The top three highest revenue contributors by country continue to be
  United Arab Emirates, the United States and Oman. The following graph
  shows the historical revenue contribution of international patients
  over the past five years.

  Thais vs. international patients (% of total revenue)

  []

  The Bangkok Facility:

  At present, the majority of the outpatient services and all of
  inpatient services are located in the 12-storey main hospital
  building. To accommodate the continuous patient volume growth, the
  Company has a master plan to expand and upgrade its Bangkok facility
  over the next four to six years. The plan includes the expansion of
  outpatient services into Bumrungrad International Clinic, the new
  outpatient building, expansion of its inpatient capacity to BH Tower
  and renovation and upgrade of the existing hospital building as it has
  reached its tenth year of operation.

  Bumrungrad International Clinic is a new 22-storey outpatient
  facility, with the first 10 floors being used as parking spaces and
  the top 12 floors as outpatient clinics. The parking facility and
  health screening center on 11^(th) floor are now open and operational.
  In addition, the Company plans to open seven additional floors for
  services in mid-2008.

  BH Tower, which is currently used as serviced apartments, will be
  converted into inpatient beds in the next 2-3 years. The Company plans
  to gradually occupy both the remaining floors of Bumrungrad
  International Clinic and BH Tower floor by floor as the additional
  space is needed. It is expected to take four to six years before the
  buildings are fully occupied, which will ultimately increase the
  capacity to 650 beds and 6,000 outpatients per day, almost doubling
  its current earning capacity, and making Bumrungrad International
  Hospital, Bangkok one of the largest outpatient clinics in the world.

  Bumrungrad International Limited

  Bumrungrad International Limited, the Company’s 31.5% associated
  company, makes investments in overseas healthcare-related businesses
  through joint ventures with local partners and provides consulting and
  management services for those businesses. Currently, Bumrungrad
  International Limited has investments in two hospitals and one network
  of dialysis clinics.

  Bumrungrad International Limited has a 45.5% effective investment in
  Asian Hospital Inc. (“AHI”) in the Philippines as at 31 December 2007.
  AHI commenced its operations on 15 March 2002 as the first major
  private hospital with tertiary care facilities in southern Luzon
  corridor of metropolitan Manila. It is a 253-bed hospital, well known
  for its modern medical equipment and experienced physicians,
  particularly in cardiology. Similar to the Bangkok facility, AHI also
  targets the middle class population.

  Bumrungrad International Limited has a 49% joint venture with
  Istithmar PJSC, an investment arm of United Arab Emirates government,
  to operate a 250-bed private hospital under the name Bumrungrad
  Hospital Dubai. Currently, the hospital is under construction and is
  expected to be operational in 2009.

  Bumrungrad International Limited has a 100% investment in Asia Renal
  Care Limited (“ARC”), the leading private provider of dialysis and
  related services in Asia for patients suffering from chronic kidney
  failure. ARC was founded in 1997 and is headquartered in Singapore.
  ARC currently operates 77 clinics (as of 31 December 2007) and treats
  over 4,400 patients in six countries, including Taiwan, Korea,
  Singapore, Malaysia, Philippines and Japan.

  In addition, Bumrungrad International Limited has a four-year
  management agreement with the Health Authority of Abu Dhabi to operate
  Bumrungrad Al Mafraq Hospital in Abu Dhabi, United Arab Emirates.
  Bumrungrad International Limited is among the three hospitals
  including Johns Hopkins and Cleveland Clinic of the United States to
  have been awarded such management contract. Bumrungrad Al Mafraq
  Hospital is a public hospital with 460 acute care beds, 14 intensive
  care and 14 special care baby unit beds. It treats 310,000 patients,
  including more than 25,000 inpatients annually.

  In addition to the three existing investments, Bumrungrad
  International Limited is aggressively pursuing other investment
  opportunities in the region. Its strategic partners, including
  Istithmar, Temasek, Asia Financial Holdings and Bangkok Bank Public
  Company Limited, are sources of new investment opportunities and
  network in their respective regions, which are the Middle East,
  Southeast Asia, China and North Asia.

3.2 Industry and Competition

  As at 2006, there were 344 private hospitals in Thailand, of which 102
  are in Bangkok. The demand for healthcare continues to grow with the
  growth of GDP, the increasing trend of aging population, and the rise
  of life expectancy. Moreover, with the introduction of Baht 30 Scheme
  in 2001, where patients pay Baht 30 per hospital visit or admission at
  public and participating private hospitals, most of the Thais now have
  access to healthcare. However, due to the low reimbursement rate and
  sudden influx of patients, many public and participating private
  hospitals have accumulated a large amount of debt and their staff are
  overworked. This problem results in two trends: 1) Many clinical staff
  is moving towards the private sector; and 2) Patients who find the
  wait unbearable are going to private hospitals. However, since the
  political instability in September 2006, the domestic economy saw a
  slow-down, resulting in slower growth in consumption of private
  healthcare. Supply of private healthcare facilities in Thailand
  remains in excess of domestic demand and as a result competition for
  Thai patients remains intense. Many private hospitals have undergone
  upgrades both in terms of quality of service and building renovations
  and expansion in order to remain competitive. In any case, the private
  healthcare industry in Thailand is a fragmented market and only a few
  hospitals are operating close to its full capacity.

  The bigger market that is growing faster than domestic demand is
  medical tourism. The global medical tourism industry is expected to
  see continued strong growth as more and more people are traveling
  abroad for healthcare services. In Thailand alone, number of foreign
  patients treated in private hospitals has increased from 630,000 in
  2002 to 1.4 million in 2006. Thailand’s regional competitors are
  hospitals in countries such as Singapore, Malaysia and India. Private
  hospitals in Thailand have a competitive advantage compared to many of
  the countries, as Thailand has a unique combination of high quality
  healthcare, accessibility and affordability, coupled with Thailand
  being a popular tourist destination with a good supporting
  infrastructure. Within Thailand itself, there are only a few private
  hospitals that have the technology and sophistication to address the
  needs of international patients.

  The Company’s strategy is to maintain quality superiority through a
  differentiated product that includes Bumrungrad International
  Hospital, Bangkok as Asia’s first internationally accredited hospital.
  Also, pricing is targeted within the top tier of Thai hospitals while
  remaining price competitive in the region.

  For regional competition, in addition to maintaining the quality and
  the pricing strategy, the Company also seeks to continue as the
  dominant player by operating hospitals and healthcare facilities in
  key markets through investments abroad, which at present includes the
  Philippines, Singapore, Malaysia, Taiwan, Korea, Japan and the Middle
  East. In addition, the Company operates seventeen overseas
  representative offices in its major markets and has the International
  Patient Center to accommodate the needs of international patients. The
  Company is also a tertiary referral center for both domestic and
  international hospitals.

Target Markets

  For domestic market, the Company targets middle to upper class Thais.

  International market can be divided into two types, expatriate
  community in Thailand and in the region and medical tourism from
  countries where the healthcare services are not up to standard or too
  expensive, or there is a long waiting list for the healthcare
  services.

  In addition, the Company also targets patients from corporate
  contracts, insurance companies and referral patients both within
  Thailand and from abroad.

Distribution and Marketing Channels 

  An effective way to attract customers is by way of obtaining patient
  referrals, both within Thailand and from other countries. With
  Bumrungrad Hospital as a reputable tertiary hospital of over 27 years,
  specializing in the treatments of complicated diseases, the Company
  has established excellent referral connections with hospitals and
  doctors both within Thailand and abroad.

  The hospital maintains over one thousand corporate and insurance
  contracts as a method for directing patients to the hospital.

  For its international marketing, the Company has set up seventeen
  representative offices in fifteen countries.

3.3 Sources of Products and Services

Capacity

As at 31 December

  -----------------------------------------------------------------------
  Inpatients                      2007         2006          2005
  ------------------------------- ------------ ------------- ------------
  Total number of beds            554          554           554

  Beds in operation               458          449           457

  Total capacity*                 167,170      163,885       166,805

  Occupied beds per year (beds)   124,871      124,685       123,202

  Capacity Utilization (percent)  74.70        76.08         73.85
  -----------------------------------------------------------------------

  * Total capacity is calculated by multiplying the number of beds in
  operation with the number of days of service

As at 31 December

  -------------------------------- ------------ ------------- ------------
  Outpatients                      2007         2006          2005

  Capacity per day (persons)       3,500        3,500         3,500

  Average outpatients per day      2,800        2,833         2,768
  (persons)                                                   

  Capacity Utilization (percent)   80.00        80.94         79.09
  -------------------------------- ------------ ------------- ------------

  The Hospital recently finished the construction of a 22-storey
  Bumrungrad International Clinic building to accommodate the rising
  demand, especially of the outpatient service. Details of the plan are
  in Section 6, Future Plan.

Raw Materials and Suppliers 

  Primary raw materials of the hospital business are pharmaceuticals,
  medical supplies and medical equipment. Suppliers of the raw materials
  are mainly companies with offices in Thailand. There are over 500
  suppliers and the Company has no trouble sourcing supplies. In
  addition, the Company has an efficient purchasing and inventory
  control system, which evaluates the appropriateness of the price, and
  effectiveness and quality of the raw materials.

Environmental Compliance 

  The Company values the significance of the environment, energy and
  natural resources conservation. The Company has set up an
  environmental policy to communicate to employees its views on
  environment preservation and encourages employees to help protect
  global environment. The Company is committed to controlling
  environmental impact to neighboring communities and efficiently
  utilizing natural resources by practicing energy conservation and
  supporting material recycling. All employees and contractors of the
  Company are expected to follow the government environmental
  regulations and the Company’s environmental policies.