2. BUSINESS DESCRIPTION

2.1 Company History

  1980: Bumrungrad Hospital was the first private hospital to open in
  central Bangkok with a capacity of 220 beds.

  1989: Bumrungrad Hospital Public Company Limited (“the Company”)
  became a listed company on the Stock Exchange of Thailand.

  1997: The hospital opened the new replacement facility with capacity
  of 554 beds.

  1999: Bumrungrad Hospital received ISO9002 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 quality, Bumrungrad
  Hospital received ISO14001 standard for its environmental management,
  and was the first hospital in Asia to receive ISO9001:2000
  accreditation. In addition, it was the first hospital to receive the
  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
  patients, and formally opened the International Patient Center to
  accommodate the increasing demand. In addition, the Company launched a
  business unit, BH International, 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, BH
  International is operated under Bumrungrad International Limited, a
  31.5% associated 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 the Joint Commission of the United
  States 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 Stock Exchange of Thailand 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, BH International business unit was
  transferred to be under the responsibility of Bumrungrad International
  Limited, the Company’s 100% subsidiary at the time. Bumrungrad
  International Limited’s policy was changed from providing consulting
  and management services to investments in hospitals in the region.

  2005: Bumrungrad International Limited invested an effective
  shareholding of 43.25% in Asian Hospital Inc. (“AHI”) which is the
  operator of 253-bed private hospital in Manila, the Philippines.

  2006: Bumrungrad International Limited invested a 49% stake in
  Bumrungrad Hospital Dubai LLC, the operator of a 250-bed private
  hospital in Dubai, United Arab Emirates. The investment size is
  expected to be Baht 388 million, of which Bumrungrad International
  Limited paid the initial investment of Baht 25.8 million in 2006. The
  hospital is currently under construction and is expected to be
  operational in 2009. In addition, in 2006, Bumrungrad International
  Limited increased its capital through an issuance of 5,764,701 new
  shares to strategic partners, Temasek, Istithmar and Bangkok Bank
  Public Company Limited. As a result, the Company’s shareholding in
  Bumrungrad International Limited was decreased from 100% to 51%.

  2007: For the expansion of the Bangkok facility, the Company completed
  the construction of the new Bumrungrad International Clinic and opened
  the Health Screening Center on the 11^(th) floor and the parking in
  the beginning of 2007. In addition, the Company started construction
  of seven additional floors, consisting of sky lobby, restaurants, a
  service level for pharmacy and laboratory, and four additional floors
  of outpatient clinics, one of which will be the new Heart Center. The
  seven floors are expected to be open in May 2008.

  In April 2007, Bumrungrad International Limited increased its capital
  from Baht 1,176,470,100 to Baht 1,904,760,900 through an issuance of
  7,282,908 new shares of Bumrungrad International Limited at Baht
  153.52 per share, totaling Baht 1,118 million. The Company waived its
  rights to subscribe to the 3,714,283 new shares of Bumrungrad
  International Limited to allow AFH International Company Limited
  ("AFH"), Asia Financial Holdings Limited’s wholly-owned subsidiary, to
  subscribe such shares. As a result, the Company’s shareholding in
  Bumrungrad International Limited was reduced to 31.5% from 51.0% and
  AFH's shareholding was increased to 19.5% from 0%. Bumrungrad
  International Limited’s status was changed from the Company’s
  subsidiary to the Company’s associated company.

  In June 2007, Bumrungrad International Limited increased its
  registered and paid up capital from Baht 1,904,760,900 to Baht
  2,749,336,700 by issuing 8,445,758 new shares at a subscription price
  of Baht 100.00 per share. The Company subscribed to its shareholding
  proportion of such new shares, or 2,660,413 shares in the amount of
  Baht 266,041,300, resulting in the Company's shareholding in
  Bumrungrad International Limited to remain unchanged at 31.5%.

  In June 2007, Bumrungrad International Limited invested in a 100%
  stake of Asia Renal Care Limited (“ARC”), the largest private provider
  of dialysis and related services in Asia. ARC is headquartered in
  Singapore and operates 77 clinics in 6 countries, including Taiwan,
  Korea, Singapore, Malaysia, Philippines and Japan. The investment size
  was approximately US$ 75 million.

  Also in June 2007, Bumrungrad International Limited signed a four-year
  agreement with the Health Authority of Abu Dhabi to manage Bumrungrad
  Al Mafraq Hospital in Abu Dhabi, United Arab Emirates. Bumrungrad Al
  Mafraq Hospital is a 460-bed public hospital that treats 310,000
  patients each year.

  In addition, in 2007, Bumrungrad International Limited converted
  management fees received from AHI in the Philippines into equity
  stake. As a result, its shareholding in AHI increased from 43.25% to
  45.5% as at 31 December 2007.

  In September 2007, the Company announced a 30% investment in Global
  Care Solution (Thailand) Company Limited ("GCS Thailand") in the
  amount of US $630,000 or an equivalent of approximately Baht 21
  million, in addition to the Company’s existing 14% stake in Global
  Care Solutions S.A. in Luxemburg ("GCS Luxemburg"). Subsequently in
  December 2007, GCS Thailand completed the sale of its software and
  other assets to Microsoft Corporation in the United States and
  Microsoft (Thailand) Co., Ltd. As a result, the Company recorded share
  of profit from GCS Thailand of Baht 829 million in the fourth quarter
  of 2007. In addition, GCS Thailand changed its name from Global Care
  Solutions (Thailand) Company Limited to CDE Trading Company Limited.

2.2 Business Overview 

Corporate structure:

[]

  Bumrungrad Hospital Public Company Limited (“the Company”) operates a
  private hospital business in Bangkok with a licensed 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 the
  Joint Commission on International Accreditation (JCIA).

  The Company is expanding and upgrading its flagship Bangkok facilities
  over the next four to six 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 earning capacity. In
  addition, the Company is looking to expand its operations overseas
  through its 31.5% associated company, Bumrungrad International
  Limited. Bumrungrad International Limited is aggressively looking for
  additional healthcare opportunities in the region.

  The Company has two 100%-owned subsidiaries, including Bumrungrad
  Medical Center Limited and Vitallife Corporation Limited, two
  associated companies, including 31.5% stake in Bumrungrad
  International Limited and 30% stake in CDE Trading Company Limited
  (previously Global Care Solutions (Thailand) Company Limited), and one
  related company, which is a 14% investment in Global Care Solutions
  S.A. in Luxemburg.

  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 is the Company’s international
  investment arm. Bumrungrad International Limited’s strategy is to own
  and manage hospitals and healthcare service providers outside of
  Thailand. Bumrungrad International Limited currently has 80 hospital
  and clinic locations in 7 countries outside of Thailand. Bumrungrad
  International Limited’s strategic partners are Istithmar, an
  investment arm of the United Arab Emirates government, Temasek of
  Singapore, Asia Financial Holdings in Hong Kong and Bangkok Bank
  Public Company Limited. These strategic partners are internationally
  well known with strong presence in their respective regions, thereby
  providing important sources of new investment opportunities and
  referral network especially in the Middle East, Southeast Asia, China
  and North Asia.

  CDE Trading Company Limited (previously Global Care Solutions
  (Thailand) Company Limited) was a software development company for
  healthcare business. In December 2007, Global Care Solutions
  (Thailand) Company Limited completed the sale of its core assets,
  which was the hospital software, and other assets to Microsoft
  Corporation and Microsoft (Thailand) Co., Ltd. It also changed its
  name from Global Care Solutions (Thailand) Company Limited to CDE
  Trading Company Limited and is in the process of studying new
  investment opportunities.

  Global Care Solutions S.A. (“GCS Luxemburg”) is currently a dormant
  company.

2.3 Revenue Structure

  Unit: Baht Million

  -------------------------------------------------------------------------------------------------
  Product line Operate by      % Shareholding 2007              2006              2005      
  / Business                   by Company                                                   
  Group                                                                                     
  ------------ --------------- -------------- --------- ------- --------- ------- --------- -------
                                              Revenue   %       Revenue   %       Revenue   %

  Healthcare   Bumrungrad                     8,227     87.4    7,572     95.9    6,586     96.8
               Hospital Pcl.                                                                

  Healthcare   Vitallife       100.00         97        1.0     78        1.0     61        0.8
               Corporation                                                                  
               Ltd.                                                                         

  Total                                       8,324     88.4    88.4      96.9    6,647     97.6
  Healthcare                                                                                

  Hospital     Bumrungrad      31.50*         17        0.2     57        0.7     7         0.1
  Management   International                                                                
               Ltd.                                                                         

  Total                                       17        0.2     57        0.7     7         0.1
  Hospital                                                                                  
  Management                                                                                

  Rental       Bumrungrad                     132       1.4     118       1.5     89        1.3
               Hospital Pcl.                                                                

  Total Rental                                132       1.4     118       1.5     89        1.3

  Others       Bumrungrad                     925       9.9     57        0.7     58        0.9
               Hospital Pcl.**                                                              

  Others       Bumrungrad      100.00         2         -       1         -       -         -
               Medical Center                                                               
               Ltd.                                                                         

  Others       Bumrungrad      100.00         13        0.1     12        0.2     6         0.1
               International                                                                
               Ltd.                                                                         

  Total Others                                940       10.0    70        0.9     64        1.0

  Total                                       9,413     100.0   7,895     100.0   6,807     100.0
  -------------------------------------------------------------------------------------------------

  * Bumrungrad International Limited changed its status from a
  subsidiary to an associated company in April 2007. Therefore, the
  revenue from hospital management of Baht 17 million in 2007 was only
  the 1Q07 revenue as Bumrungrad International Limited’s accounts were
  no longer consolidated into the Company’s in 2Q07, 3Q07 and 4Q07.

  ** In 2007, Bumrungrad Hospital Pcl. reported other revenues of Baht
  925 million, of which Baht 829 million was the share of profit from
  investments in GCS Thailand, which was primarily the one-time
  non-operating gain from sale of assets in GCS Thailand, netted off
  with GCS Thailand’s operations.

2.4 Company’s Business Goal

  The Company has business goals as follows:

  1. Expansion and upgrade of the Bangkok facility in the next four to
  six years: With the continuous and rapid growth in number of patients,
  the Company expects to be under capacity constraint, particularly for
  its outpatient facilities very soon. In order to better service its
  growing customer base, the Company has a comprehensive plan to upgrade
  and expand its Bangkok facility as follows:

  1.1 New Bumrungrad International Clinic: The Company constructed a
  22-storey outpatient clinic building, of which the first 10 floors are
  parking. The Company plans to open the floors as needed over the next
  4-6 years to accommodate the rising demand.

  1.2 Existing hospital building: As the existing hospital has been
  opened for over ten years, the Company will be renovating and
  upgrading its existing hospital building, including inpatient rooms
  and outpatient clinics, over the next three years.

  1.3 BH Tower building: Currently, BH Tower building is used as
  serviced apartment for patient family and relatives. The Company plans
  to convert the serviced apartments into inpatient beds and open the
  floors as needed, starting in 2011 to accommodate the rising demand.

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

  3. International expansion: The Company’s strategy is to expand its
  business internationally. Bumrungrad International Limited is
  responsible for conducting the feasibilities study and making
  investments in hospitals in target markets.

  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:

  1.1 New Bumrungrad International Clinic: The construction was
  completed and the building is now partially open for service,
  including the first 10 floors of parking and 11^(th) floor as the new
  Health Screening Center in the beginning of 2007. The Company plans to
  open 7 additional floors in the new building by mid-2008, which
  includes 4 floors of outpatient clinics, new outpatient ancillaries, a
  sky lobby, and a food center.

  1.2 Existing hospital building: The design of the new inpatient rooms
  are completed. Renovation starts in early 2008.

  1.3 BH Tower building: The Company purchased the BH Tower land and
  building from Bangkok Bank Public Company Limited in February 2008. BH
  Tower is currently used as serviced apartments and is expected to be
  closed for renovation in 2009, to be opened as inpatient beds in 2011.

  2. Leader in medical service provider in the region: Bumrungrad
  Hospital has continuously developed and improved 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 Bumrungrad International Limited. Bumrungrad
  International Limited invested in Asian Hospital Inc. in the
  Philippines in 2005, invested 49% in Bumrungrad Hospital Dubai LLC in
  2006; and invested 100% in Asia Renal Care Limited and received a
  management contract of the Bumrungrad Al Mafraq Hospital in Abu Dhabi
  in 2007.

  In 2007, all investments were contributing positively to Bumrungrad
  International Limited’s earnings and Bumrungrad International Limited
  itself recorded positive earnings.