5. ASSETS USED FOR BUSINESS OPERATIONS

5.1 Fixed Assets of the Company and its Subsidiaries 

  As at 31 December 2006

+------------------------+----------+-----------------------+---------+
| Type/Characteristics   | O        | Obligations           | Book    |
| of Assets              | wnership |                       | Value   |
|                        | Status   |                       |         |
|                        |          |                       | (Baht   |
|                        |          |                       | m       |
|                        |          |                       | illion) |
+------------------------+----------+-----------------------+---------+
| 11 plots of land on    | Owner    | Mortgaged for         | 290.86  |
| Sukhumvit Rd., a total |          | convertible bonds     |         |
| of 9 rai 3 ngarn       |          | totaling Baht 550     |         |
|                        |          | million               |         |
+------------------------+----------+-----------------------+---------+
| Leasehold rights and   | 30-year  | -                     | 22.21   |
| land improvement       | right    |                       |         |
+------------------------+----------+-----------------------+---------+
| 12- floor hospital     | Owner    | Mortgaged for         | 1       |
| building on Sukhumvit  |          | long-term loan of     | ,194.34 |
| Rd.                    |          | Baht 3,620 million ;  |         |
|                        |          | Principal outstanding |         |
|                        |          | as at 31 December     |         |
|                        |          | 2006 is Baht 1,751    |         |
|                        |          | million               |         |
+------------------------+----------+-----------------------+---------+
| 22 floor hospital      | Owner    | -                     | 130.51  |
| building               |          |                       |         |
+------------------------+----------+-----------------------+---------+
| Nurse dormitory        | Owner    | -                     | 53.21   |
+------------------------+----------+-----------------------+---------+
| Facility system        | Owner    | -                     | 78.65   |
+------------------------+----------+-----------------------+---------+
| Medical equipment      | Owner    | Mortgaged for the     | 814.69  |
|                        |          | long term loan of     |         |
|                        |          | Baht 3,620 million;   |         |
|                        |          | Principal outstanding |         |
|                        |          | as at 31 December     |         |
|                        |          | 2006 is Baht 1,751    |         |
|                        |          | million               |         |
+------------------------+----------+-----------------------+---------+
| Hospital equipment     | Owner    | -                     | 199.35  |
+------------------------+----------+-----------------------+---------+
| Utensils and furniture | Owner    | -                     | 128.03  |
+------------------------+----------+-----------------------+---------+
| Vehicles               | Owner    | -                     | 13.21   |
+------------------------+----------+-----------------------+---------+
| Assets under           | Owner    | -                     | 826.89  |
| construction and       |          |                       |         |
| installation           |          |                       |         |
+------------------------+----------+-----------------------+---------+
| Total                  |          |                       | 3       |
|                        |          |                       | ,751.95 |
+------------------------+----------+-----------------------+---------+

  The leasehold right in the amount of Baht 13.96 million is where
  Bumrungrad Medical Center Limited (BMC) leased the land from the
  Company to build the existing hospital building. The 30-year lease
  contract has a remaining term of 20 years, and will expire in June
  2026. The rental is approximately Baht 22.3 million per year. At
  present, BMC leases the building to the Company for 3 years, starting
  in August 2004 for the amount of Baht 84 million per year. In
  addition, The Company has entered into a 30-year lease contract to
  lease land from a third party to build the nurse dormitory. The
  leasehold right has a net book value of Baht 3.62 million, with 16
  years remaining until 2022. The Company has to pay rental of
  approximately Baht 800,000 per year.

  The new 22 storey hospital building, the Bumrungrad International
  Clinic, which is in the process of construction, shows value of only
  the areas which are open for operation.

5.2 Intangible Assets of the Company and its Subsidiaries 

  As at 31 December 2006, the Company and subsidiaries have net
  intangible assets of Baht 732.09 million, most of which are computer
  program used for hospital business and ancillary businesses of the
  Company and subsidiaries.

5.3 Investment Policy 

  As at 31 December 2006, the Company has a total investment of Baht
  1,678.67 million divided into Baht 953.69 million in Bumrungrad
  Medical Center Limited, Baht 712.69 million in Bumrungrad
  International Limited and Baht 12.29 million in Vitallife Corporation
  Limited. Total investments in the subsidiaries and affiliates account
  for 27 percent of its total asset. In addition, Company has recorded
  excess of investment over book value in subsidiary amounting Baht
  192.66 million, which was presented as a discount in shareholders’
  equity.

  The Company’s management policy of subsidiaries and affiliates is to
  appoint representatives to be on the subsidiaries and affiliates’
  board of directors in proportion to its shareholding. The appointed
  director must receive the Company’s approval in order to consider any
  decision which may significantly affect the operations of the such
  subsidiaries or affiliates.

5.4 Trademark 

  The Company and subsidiaries has 4 trademarks which have been
  registered or is in the process of registration with Department of
  Intellectual Property, Ministry of Commerce. At present, 2 trademarks
  are being used commercially as follows:

  ----------------------------------------------------------------------------
  Trademark                  Objective of use       Registration   Expiry Date
                                                    Date           
  -------------------------- ---------------------- -------------- -----------
  []                         For services including 23 May 2005    22 May 2011
                             physical therapy,                     
                             healthcare, child                     
                             care, baby delivery,                  
                             optical services,                     
                             blood bank services,                  
                             medical services,                     
                             medical assistance,                   
                             pharmaceutical                        
                             advisory, medical                     
                             clinic, dentistry,                    
                             hospital business,                    
                             plastic surgery,                      
                             rehabilitation                        
                             service, nursery and                  
                             beauty clinic                         

  []                         For services including 27 December    26 December
                             physical therapy,      2004           2014
                             healthcare, child                     
                             care, baby delivery,                  
                             optical services,                     
                             blood bank services,                  
                             medical services,                     
                             medical assistance,                   
                             pharmaceutical                        
                             advisory, medical                     
                             clinic, dentistry,                    
                             hospital business,                    
                             plastic surgery,                      
                             rehabilitation                        
                             service, nursery and                  
                             beauty clinic, and for                
                             services including                    
                             business management,                  
                             and supporting                        
                             services for the group                
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