4. Nature of Business by Business Group

4.1 Product Characteristics

The Company separates its core business operations into 3 groups as
follows: (1) Property Development (2) Hotel, Hospitality, Property
Management and Services, and (3) Project Management.

Business 1: Property Development Business

Thana City Project on Bangna-Trad Road Km. 14

The Thana City project located on Bangna-Trad Road Km. 14 is operated by
the Company. The project location offers convenient access to
Bangna-Trad road and the expressway, to On-Nuch and Bangkok-Chonburi
motorway. The project also offers easy access to Central City Bangna
Shopping Complex, Krirk University, Assumption University, King
Mongkut’s Institute of Technology Ladkrabang, Hospitals, Suvarnabhumi
Airport as well as the Airport Link, which will facilitate access to the
city in the future.

The total project area of more than 1,600 rais has been developed with
utilities, infrastructure and a flood prevention system in the midst of
green space. For health, residents can become a member of the sports
club, which consists of an outdoor sports ground including 8 tennis
courts and Olympic sized swimming pool as well as indoor sport
facilities including badminton courts, basketball courts, squash courts,
snooker room, sauna, play area for kids, fitness and aerobic rooms with
trainers to provide professional advice. There is an 18 hole golf
course, par 72 designed by a world class professional golfer as well as
a golf driving range located within the project area.

Since Thana City is a large project that serves the needs of all
clients, the Company has developed various types of property to fulfill
clients’ demand. Parts of the project such as Prestige House 1, which is
a single detached house project with land of 400 sq.wah and above, is
already completed and sold out.

At present, there are property development projects within Thana City
for all clients as follows:

Single detached houses with land

1. Prestige House II

2. Prestige House III (Habitat)

3. Thana Place King Kaew

Townhouses

1. Townhouse beside the lake and garden

2. Townhouse (Habitat)

Condominiums

1. Prestige Condominium

2. Nouvelle Condominium

3. King Kaew Condominium

Land

1. Prestige Prime and also land around golf course

2. Californian

Single detached House with Land

+-------------+------------------+------------------+------------------+
| Details     | Prestige House   | Prestige House   | Thana Place      |
|             | II               | III              |                  |
|             |                  |                  | King Kaew        |
|             |                  | (Habitat)        |                  |
+-------------+------------------+------------------+------------------+
| Location    | Bangna-Trad Road | Bangna-Trad Road | Bangna-Trad Road |
|             | Km.14            | Km.14            | Km.14            |
+-------------+------------------+------------------+------------------+
| Project     | 73-0-0 rais      | 130-0-0 rais     | 101-2-80 rais    |
| Area        |                  |                  |                  |
+-------------+------------------+------------------+------------------+
| Investment  | 144.4 MB         | 242.2 MB         | 231.7 MB         |
| Capital     |                  |                  |                  |
+-------------+------------------+------------------+------------------+
| Project     | 662.2 MB         | 844 MB           | 439.9 MB         |
| Value       |                  |                  |                  |
+-------------+------------------+------------------+------------------+
| Project     | Single house     | Single house     | Single house     |
| Type        | with land 200    | with land        | with land 100    |
|             | sq.wah up        | 100-250 sq.wah   | sq.wah up        |
+-------------+------------------+------------------+------------------+
| Units       | 85 units         | 288 units        | 307 units        |
+-------------+------------------+------------------+------------------+
| Price per   | 38,000-42,000    | 38,000-42,000    | 29,000-35,000    |
| Unit        | baht/sq.wah      | baht/sq.wah      | baht/sq.wah      |
+-------------+------------------+------------------+------------------+
| Sold Value  | 315.3 MB         | 601.5 MB         | 242.8 MB         |
+-------------+------------------+------------------+------------------+
| Units Sold  | 42 units         | 204 units        | 215 units        |
| and         |                  |                  |                  |
|             |                  |                  |                  |
| Transferred |                  |                  |                  |
+-------------+------------------+------------------+------------------+
| Backlog     | 43 units         | 84 units         | 92 units         |
+-------------+------------------+------------------+------------------+

The Company has already sold out Prestige House I with land plots sized
at 400 sq.wah and above. Presently, Prestige House II, Prestige House
III and Thana Place King Kaew are single detached house projects with
smaller land plots of approximately 50-400 sq.wah. There are various
sizes of land plot and types of houses to suit a client’s preference.

Townhouse

+----------------------+----------------------+-----------------------+
| Details              | Townhouse            | Townhouse             |
|                      |                      |                       |
|                      | Beside the Lake and  | (Habitat)             |
|                      | Garden               |                       |
+----------------------+----------------------+-----------------------+
| Location             | Bangna-Trad Road Km. | Bangna-Trad Road Km.  |
|                      | 14                   | 14                    |
+----------------------+----------------------+-----------------------+
| Project Area         | 12-0-0 rais          | 2-3-20 rais           |
+----------------------+----------------------+-----------------------+
| Investment Capital   | 118.7 MB             | 15.2 MB               |
+----------------------+----------------------+-----------------------+
| Project Value        | 188.1 MB             | 24.7 MB               |
+----------------------+----------------------+-----------------------+
| Project Type         | Townhouse 8 meters   | Commercial townhouse  |
|                      | width                |                       |
|                      |                      | 3.5 storey            |
|                      | 3 storey/4 storey    |                       |
|                      |                      | utility space 40-60   |
|                      | utility space 40-50  | sq.wah                |
|                      | sq.wah               |                       |
+----------------------+----------------------+-----------------------+
| Units                | 72 units             | 20 units              |
+----------------------+----------------------+-----------------------+
| Price per Unit       | 3.8 - 4.6 MB         | 3.0 – 5.1 MB          |
+----------------------+----------------------+-----------------------+
| Sold Value           | 134.4 MB             | 5.5 MB                |
+----------------------+----------------------+-----------------------+
| Units Sold and       | 54 units             | 4 units               |
| Transferred          |                      |                       |
+----------------------+----------------------+-----------------------+
| Backlog              | 18 units             | 16 units              |
+----------------------+----------------------+-----------------------+

The townhouse project beside the lake and garden emphasizes a design
with a large utility space of 250-300 sq.m. on 40-50 sq.wah of land
under a resort concept. There are 3 and 4 storey versions with 3-4
bedrooms. Currently, there are only 18 units available. For reasons of
surrounding beauty, all power lines are built underground throughout the
project.

Townhouse (Habitat) emphasizes the multi-function utility space and is
suitable as a commercial townhouse. There are only 16 units available at
present.

Condominium

+-------------+------------------+------------------+------------------+
| Details     | Prestige         | Nouvelle         | King Kaew        |
|             |                  |                  |                  |
|             | Condominium      | Condominium      | Condominium      |
+-------------+------------------+------------------+------------------+
| Location    | Bangna-Trad Road | Bangna-Trad Road | Bangna-Trad Road |
|             | Km.14            | Km.14            | Km.14            |
+-------------+------------------+------------------+------------------+
| Project     | 24-0-0 rais      | 25-0-0 rais      | 6-2-10 rais      |
| Area        |                  |                  |                  |
+-------------+------------------+------------------+------------------+
| Investment  | 1,169.8 MB       | 1,026.1 MB       | 384.0 MB         |
| Capital     |                  |                  |                  |
+-------------+------------------+------------------+------------------+
| Project     | 993.9 MB         | 1,386.4 MB       | 300.3 MB         |
| Value       |                  |                  |                  |
+-------------+------------------+------------------+------------------+
| Project     | 16 storey        | 17 storey        | 6-7 storey       |
| Type        | condominium      | condominium      | condominium 15   |
|             |                  |                  | buildings        |
|             | 6 buildings      | 6 buildings      |                  |
+-------------+------------------+------------------+------------------+
| Units       | 340 units        | 905 units        | 456 units        |
+-------------+------------------+------------------+------------------+
| Price per   | 15 MB            | 1.2-7.9 MB       | 0.8-1.3 MB       |
| Unit        |                  |                  |                  |
+-------------+------------------+------------------+------------------+
| Sold Value  | 979.3 MB         | 950.6 MB         | 159.3 MB         |
+-------------+------------------+------------------+------------------+
| Units Sold  | 338 units        | 774 units        | 320 units        |
| and         |                  |                  |                  |
|             |                  |                  |                  |
| Transferred |                  |                  |                  |
+-------------+------------------+------------------+------------------+
| Backlog     | 2 units          | 131 units        | 136 units        |
+-------------+------------------+------------------+------------------+

Prestige Condominium

There are currently only 2 units available, both of which are 2-storey 5
bedroom penthouses with 428 sq.m. of space at the price of approximately
15 million baht. Front balcony offers beautiful panoramic views of the
golf course.

Nouvelle Condominium

The project consists of six 17-storey condominium buildings and 3
swimming pools among landscaped gardens with each swimming pool
connected between 2 buildings for the convenience of the residents.

All units are fitted with stylish furniture. Unit size ranges from 1
bedroom with 60 sq.m. of usable space at 1.20 million baht; 2 bedroom
with space of 97 sq.m. at 1.94 million baht and 3-4 bedroom 2-storey
penthouse units with 250 sq.m. of usable space at 5.0 million baht.

King Kaew Condominium

The project consists of fifteen 6-7 storey condominium buildings with
41-45 sq.m. space for 1 bedroom units at 800,000 baht, 60 sq.m. space
for 2 bedroom units at 1.1 million baht and 98 sq.m. space for 3 bedroom
2-storey duplex units at 1.6 million baht.

Both Nouvelle and King Kaew condominiums are pre-built residential
condominiums offering convenience to clients as all units are fitted
with furniture and air-conditioned and ready to move in. All units are
well designed with spacious bedroom and separated kitchen area with a
ventilation system.

Thana City’s condominium project is the only condominium in Suvarnabhumi
area offering easy access to various industrial estates and the city’s
major business centers.

Land

  ----------------------- ----------------------- -----------------------
  Details                 Prestige Prime Land     Californian

  Location                Bangna-Trad Road Km. 14 Bangna-Trad Road Km. 14

  Project Area            106-0-0 rais            14-3-7.5 rais

  Investment Capital      172.9 MB                41.5 MB

  Project Value           1,223.5 MB              161.4 MB

  Project Type            land plot around golf   Single-detached house
                          course                  

  Units                   123 units               63 units

  Price per Unit          3.8-23.2 MB             1.2- 4.7 MB

  Sold Value              970.2 MB                75.5 MB

  Units Sold and          91 units                32 units
  Transferred                                     

  Backlog                 32 units                31 units
  ----------------------- ----------------------- -----------------------

Land plots are allocated for both sale and build-to-order to serve
client’s demand. The Company has various sizes of land plot to suit the
need of each client group such as Prestige Prime Land with land plot of
approximately 250 sq.wah. at approximately 35,000 baht per sq.wah.
Californian projects comprise land plots with approximately an area of
80 sq.wah at approximately 35,000 baht per sq.wah.

-   Marketing and Competitive Overview

Competitive Strategy

1.  Reposition existing products in line with current market demand by
    focusing on modifying concept and pricing strategy.

2.  Emphasize product differentiation for new products with regards to
    design, eminent quality and uniqueness.

3.  Further develop the community feel and liveliness of the
    environment.

4.  Recreate the landscaping of selected projects within Thana City.

5.  Enhance and increase distribution channels and integrated marketing
    communication (IMC) especially direct marketing to clients, target
    clients or general investors.

6.  Highlight clients’ satisfaction and fully integrated services.

Client Characteristics and Target Clients

1.  Residential housing projects: individuals or families with medium to
    high incomes. Most clients are those who prefer modern houses with
    large utility space, first-class surroundings and serene atmosphere.

2.  Townhouse projects: target families that require rooms which are
    suitable for diverse purposes.

3.  Condominium projects: target both Thai and foreign clients with
    medium to relatively high incomes who look for a good investment
    opportunity, second home or work near the Suvarnabhumi airport and
    require a residence with all the facilities.

4.  Land plot projects: individuals who want to build personalized
    design homes with the facilities offered by the projects.

Pricing Policy

The Company has policies regarding price setting that take into
consideration market suitability, competitiveness of each project such
that the Company shall select pricing in conjunction with the promotion
strategy for success based on suitability of each project.

-   Industry Overview

In 2008, property development industry faced various negative factors
including fluctuating prices of construction materials, political
uncertainty, the global economic crisis and its influence on the local
economy, which significantly affected the confidence of investors and
consumers. Economic slowdown has placed downward pressure on income and
purchasing power of prospective home buyers, most of whom have reacted
by delaying decision-making or cut their budgets for purchasing
residential units. Moreover, toward the end of the year, financial
institutions also became more stringent regarding property loans. These
factors shall remain as key influences in 2009. To stimulate the economy
and property development business, in March 2008, the Cabinet approved
the economic stimulus policy with measures that directly and positively
affect property development business as follows:

Tax measures to increase personal income

1.  Increase the personal income tax waiver from the first 100,000 baht
    in annual income to 150,000 baht.

2.  Increase personal income tax deduction for annual insurance premium
    payments from 50,000 baht to 100,000 baht.

3.  Increase personal income tax deduction for annual investment in
    retirement funds (RMF) and long term equity funds (LTF) from 300,000
    baht to 500,000 baht.

4.  Increase personal income tax deduction for taxpayers with
    handicapped dependents by 30,000 baht per handicapped person.

Tax measures to stimulate investment and competitive advantages of
private business operators

The tax measures to stimulate investment and competitive advantages of
private business operators, which were initially approved as a 1 year
policy and later extended to 2 years until March 2010 are as follows:

1.  Reduce specific business tax for property from 3.3 percent to 0.11
    percent

2.  Reduce property transfer fee from 2.0 percent to 0.01 percent and
    mortgage registration fee from 1.0 percent to 0.01 percent

To further stimulate property development business, in January 2009, the
Cabinet approved additional tax measures allowing home-buyers to deduct
up to 300,000 baht of principal and up to 100,000 baht of interest on
purchase expenditures of new property in which the ownership must be
transferred within the year 2009.

However, many developers believe that the main factors affecting the
decision of property buyers still remain consumer confidence, certainty
regarding their future income that will directly affect purchasing power
and the economic situation. These tax measures should be viewed as
supporting factors only.

[]Newly Registered Residential Units in Bangkok and its Vicinity

Source: Real Estate Information Center

Note: Bangkok and Vicinity Includes Samutprakarn, Nonthaburi,
Patumthani, Nakorn Prathom and Samutsakorn

+-------------------+---------+---------+---------+---------+---------+
|                   | 2004    | 2005    | 2006    | 2007    | 2008    |
+-------------------+---------+---------+---------+---------+---------+
| Number of         | 48,441  | 45,164  | 49,662  | 49,769  | 59,048  |
| residential units |         |         |         |         |         |
|                   |         |         |         |         |         |
| built by          |         |         |         |         |         |
| Developers        |         |         |         |         |         |
+-------------------+---------+---------+---------+---------+---------+
| Changes (%)       | 32.4%   | -46.8%  | 10.0%   | 0.2%    | 18.6%   |
+-------------------+---------+---------+---------+---------+---------+
| Number of         | 19,859  | 25,244  | 28,949  | 25,341  | 24,017  |
| residential units |         |         |         |         |         |
|                   |         |         |         |         |         |
| built by Owners   |         |         |         |         |         |
+-------------------+---------+---------+---------+---------+---------+
| Changes (%)       | N.A.    | 27.1%   | 14.7%   | -12.5%  | -5.2%   |
+-------------------+---------+---------+---------+---------+---------+

Source: Real Estate Information Center

Note: Bangkok and Vicinity Includes Samutprakarn, Nonthaburi,
Patumthani, Nakorn Prathom and Samutsakorn

There has been a declining trend for owners to build their own housing
units with the growing supply of residential units from various
developers. In 2008, the total number of newly registered
single-detached houses continued to decline with a reduction of 18.02
percent. There was also a significant decline of 20.01 percent in the
new supply of townhouse and commercial buildings. On the contrary,
semi-detached houses saw the highest increase since 2005 with a 48.54
percent growth rate. Condominium had the highest growth rate of 85.37
percent after a slight decline in 2007 as a substantial amount of
condominium units were completed and transferred in 2008.

Overall during the last 5 years, the number of newly registered housing
units has been within the range of 70,000-80,000 units, which can be
viewed as the natural level for Bangkok and its vicinity. Outlook for
2009, the number of newly registered housing units is expected to fall
as the effect of economic conditions on job security and hence
purchasing power remains uncertain. Some pundits expect property prices
to decline.

New Property Development Projects Opened in 2008 by Price Range

+---------+-------+-------+------+---------+-------+-------+-------+
| Price   | Singl | Sem   | T    | Com     | Co    | Land  | Total |
|         | e-Det | i-Det | own- | mercial | ndo-m | Plot  |       |
| (       | ached | ached |      |         | inium |       |       |
| Million | House | House | h    | B       |       |       |       |
| Baht)   |       |       | ouse | uilding |       |       |       |
+---------+-------+-------+------+---------+-------+-------+-------+
| < 0.501 | -     | -     | -    | -       | 80    | -     | 80    |
+---------+-------+-------+------+---------+-------+-------+-------+
| 0.501 - | -     | 96    | 5    | -       | 4,014 | -     | 9,235 |
| 1.000   |       |       | ,125 |         |       |       |       |
+---------+-------+-------+------+---------+-------+-------+-------+
| 1.001 - | 449   | 1,027 | 9    | -       | 1     | 6     | 2     |
| 2.000   |       |       | ,240 |         | 1,562 |       | 2,284 |
+---------+-------+-------+------+---------+-------+-------+-------+
| 2.001 - | 3,860 | 1,388 | 2    | 333     | 7,478 | -     | 1     |
| 3.000   |       |       | ,684 |         |       |       | 5,743 |
+---------+-------+-------+------+---------+-------+-------+-------+
| 3.001 - | 4,028 | 843   | 3    | 472     | 5,243 | -     | 1     |
| 5.000   |       |       | ,003 |         |       |       | 3,589 |
+---------+-------+-------+------+---------+-------+-------+-------+
| 5.001 - | 2,965 | -     | 138  | 301     | 2,374 | -     | 5,778 |
| 10.000  |       |       |      |         |       |       |       |
+---------+-------+-------+------+---------+-------+-------+-------+
| 10.001  | 405   | -     | 29   | -       | 520   | 51    | 1,005 |
| -20.000 |       |       |      |         |       |       |       |
+---------+-------+-------+------+---------+-------+-------+-------+
| > 20    | -     | -     | 24   | -       | 51    | 2     | 77    |
+---------+-------+-------+------+---------+-------+-------+-------+
| Total   | 1     | 3,354 | 20   | 1,106   | 3     | 59    | 6     |
|         | 1,707 |       | ,243 |         | 1,322 |       | 7,791 |
+---------+-------+-------+------+---------+-------+-------+-------+

Source: Agency for Real Estate Affairs

Total Property Development Projects Offered in the Market as at the end
of 2008 by Price Range

+---------+-------+-------+------+---------+-------+-------+-------+
| Price   | Singl | Sem   | T    | Com     | Co    | Land  | Total |
|         | e-Det | i-Det | own- | mercial | ndo-m | Plot  |       |
| (       | ached | ached |      |         | inium |       |       |
| Million | House | House | h    | B       |       |       |       |
| Baht)   |       |       | ouse | uilding |       |       |       |
+---------+-------+-------+------+---------+-------+-------+-------+
| < 0.501 | -     | -     | 1    | -       | 4     | 1,370 | 4     |
|         |       |       | ,005 |         | 8,079 |       | 9,084 |
+---------+-------+-------+------+---------+-------+-------+-------+
| 0.501 - | 2,161 | 1,339 | 33   | 90      | 2     | 663   | 5     |
| 1.000   |       |       | ,253 |         | 0,960 |       | 7,803 |
+---------+-------+-------+------+---------+-------+-------+-------+
| 1.001 - | 8,162 | 8,612 | 37   | 3,031   | 4     | 1,226 | 10    |
| 2.000   |       |       | ,141 |         | 4,150 |       | 1,096 |
+---------+-------+-------+------+---------+-------+-------+-------+
| 2.001 - | 3     | 7,534 | 9    | 1,378   | 2     | 941   | 7     |
| 3.000   | 1,240 |       | ,476 |         | 0,493 |       | 0,121 |
+---------+-------+-------+------+---------+-------+-------+-------+
| 3.001 - | 4     | 3,763 | 9    | 3,212   | 1     | 649   | 7     |
| 5.000   | 3,940 |       | ,045 |         | 5,987 |       | 5,947 |
+---------+-------+-------+------+---------+-------+-------+-------+
| 5.001 - | 2     | 168   | 1    | 568     | 9,900 | 100   | 3     |
| 10.000  | 2,445 |       | ,528 |         |       |       | 4,609 |
+---------+-------+-------+------+---------+-------+-------+-------+
| 10.001  | 4,226 | -     | 62   | 35      | 3,105 | 155   | 7,428 |
| -20.000 |       |       |      |         |       |       |       |
+---------+-------+-------+------+---------+-------+-------+-------+
| > 20    | 771   | -     | 24   | -       | 1,044 | 5     | 1,839 |
+---------+-------+-------+------+---------+-------+-------+-------+
| Total   | 11    | 2     | 91   | 8,314   | 16    | 5,109 | 39    |
|         | 2,945 | 1,416 | ,534 |         | 3,718 |       | 7,927 |
+---------+-------+-------+------+---------+-------+-------+-------+

Source: Agency for Real Estate Affairs

From these price ranges, most of property development projects opened in
2008 and offered in the market as at the end of 2008 were in price
ranges of 1-2 million baht with the majority of properties being
condominiums and townhouses. Whereas single-detached houses were in the
price range of 3-5 million baht and most of semi-detached houses were in
the price range of 1-3 million baht with the majority of land plots in
the price range less than 0.5 million baht. Based on the outstanding
number of residential units as at the end of 2008, single detached
houses and condominiums account for approximately 70 percent of the
total supply carried forward in 2009. In terms of pricing, the majority
of the units are in the low to middle price range in line with the
expected increasing demand for lower priced residential units due to
declining purchasing power.

[]Housing Price Index

Source: Real Estate Information Center

Since the second half of 2007, many property developers have adjusted
their strategy to target the lower priced housing market as they foresee
increasing demand in this market segment. Hence the price of single
detached houses and townhouses continued to grow but only at a
diminishing rate and the growth was solely due to persistent rising land
prices.

Issuances of Land Development Permits in 2008 by Type of Property
Developments

+-----------+--------+--------+--------+--------+--------+---------+
| Region    | Sin    | S      | Town-  | Comm   | Land   | Total   |
|           | gle-De | emi-De |        | ercial | Plot   |         |
|           | tached | tached | house  |        |        |         |
|           | House  | House  |        | Bu     |        |         |
|           |        |        |        | ilding |        |         |
+-----------+--------+--------+--------+--------+--------+---------+
| Bangkok   | 3,614  | 1,776  | 9,922  | 200    | 357    | 15,869  |
+-----------+--------+--------+--------+--------+--------+---------+
| Vicinity  | 8,761  | 5,612  | 14,578 | 659    | 510    | 30,120  |
| Area      |        |        |        |        |        |         |
+-----------+--------+--------+--------+--------+--------+---------+
| Total     | 12,375 | 7,388  | 24,500 | 859    | 867    | 45,989  |
+-----------+--------+--------+--------+--------+--------+---------+

Source: Real Estate Information Center

Based on the number of outstanding residential units and issuance of
land development permits in 2008, the competition in the property
development business remains very intense especially in the highly
competitive areas where there is lower demand and an excess supply.
Despite a high number of newly issued land development permits, the
level of new supply in 2009 may not be as high because many developers
have limited inventory accumulation in response to the expected economic
slowdown. Moreover, liquidity has been tight towards the end of the year
2008 and is expected to remain tight as commercial banks limit their
exposure to the sector in response to the economic crisis. Consequently,
the level of new supply and demand in 2009 shall be significantly
influenced by liquidity of loans to property developers and home buyers.

[]Outstanding and New Personal Housing Loans

Source: Real Estate Information Center

Outstanding and New Loans to Property Developers by Type of Properties

[] Outstanding Loans New Loans

Source: Real Estate Information Center

Mortgage financing has always been the key for the majority of
homebuyers and one of the key factors influencing the sales of property
developers. In 2008, new personal housing loans increased by 6.10
percent while outstanding personal housing loans increased by 7.74
percent due to the lowering trend of interest rates and intense
competition among commercial banks in the housing loans market. Demand
for housing loans in 2009 is expected to remain high with the stimulus
policy allowing tax deduction for home buyers but at the same time
commercial banks will be cautious in approving housing loans.
Nevertheless, higher income groups are willing to pay cash for property
purchases.

On the supply side, new loans to property developers in 2008 reached
65,855 million baht, an increase of 109.41 percent from 2007 due to
substantial increase in new loans for development of land and housing,
which grew by 147.42 percent.

Single-Detached Houses and Townhouses

Single-Detached houses still accounted for nearly one-third of the total
supply of residential units outstanding as at the end of 2008. However,
in recent years, there has been a growing trend in supply and demand for
townhouses. The number of townhouse units is nearly twice the number of
single-detached house units in new property development projects
launched in 2008. Many property developers have adjusted their product
mix and placed more emphasis on townhouses and some developers have
developed and marketed townhouses under the home office or mixed use
concepts. Simultaneously, townhouses have become more attractive for
homebuyers as the price is lower compared to single detached houses but
more spacious than condominiums and still offer landownership.
Subsequently, demand for townhouses has increased especially in the
price range of 1-2 million baht.

At Thana City, the Company offers single-detached houses, townhouses and
land with ranges of size and prices to meet demand of all the different
groups of customers.

Condominiums

Supply of condominium units continued to increase reaching new heights
since 2001 with 31,535 newly registered units in 2008. Condominiums have
always been in demand by both Thai and foreign buyers for living as well
as investment especially those located along the routes of BTS skytrain
or MRT underground. Several condominium projects with price ranges under
3 million baht especially those in the price range of 1-2 million baht
have been launched and received good response from customers. The demand
for condominiums in these price ranges is expected to remain strong in
2009. Prospective demand for expensive luxury condominium projects for
the upper market is uncertain especially foreign buyers due to economic
and local political situations. However, potential target clients for
2009 will be high income groups with high purchasing power that are
looking for opportunities to invest in good assets.

Factors that make the condominium market so attractive are (1) the
changing life style with travel by skytrain becoming more popular (2)
more opening of inexpensive condominiums especially along the routes of
BTS skytrain and MRT underground which offer convenient transportation
with lower cost and less travel time and therefore appeal to the
customer group with lower incomes (3) condominium units competently
serving demand for those who live alone and families with no children
(4) speculative purchase where re-sale offers higher return than bank
interest.

Thana City offers 3 condominium projects covering ranges of pricing from
0.8–15 million baht. Hence, the Company has condominium units to fully
serve all customer groups and offer convenient travel by Bangna-Trad
road and expressway to Suvarnabhumi Airport and city center.

Business 2: Hotel, Hospitality, Property Management and Services
Business

Hotel, Hospitality, Property Management and Services Business comprises
(1) Hotels (2) Office Building for rent and (3) Residential Condominiums
for rent.

(1) Hotel

The Company operates 3-4 star hotels under the brand ‘U Hotels &
Resorts’, to build and manage by Absolute Hotel Services Co., Ltd.
(AHS), a joint venture company between the Company and partners with
experience in the hotel business. For 5-6 star hotel projects, the
Company cooperates with international hotel chains to manage these
hotels as these international hotel chains are well established and
already have their own clientele. In the past, the Company was a
shareholder of the Regent Hotel on Rajadamri road and the Empress Hotel
in Chiang Mai as well as operating hotels such as the Empress Bangkok,
which is currently known as Eastin Hotel Makkasan Bangkok

Currently the Company operates two hotels namely, Eastin Lakeside Hotel
and U Chiang Mai which is the first hotel under the hotel chain “U
Hotels & Resorts”.

Eastin Lakeside Hotel

Eastin Lakeside Hotel is operated by Muangthong Assets Company Limited.
It is a 3 star hotel located in Muangthong Thani near Impact Exhibition
and Convention Center with convenient access to the expressway level 3
and Chaengwattana road. The hotel offers a beautiful panoramic view of
the lake.

The hotel consists of 143 rooms, each with its own distinctive style
unlike other hotels. All rooms comprise bedroom, living room and pantry.
Hotel rooms provide facilities for guests who just stay over night as
well as to rent a room on a monthly basis. The hotel offers a variety of
rooms ranging from 1-3 bedrooms to 3 bedrooms in a 2-storey penthouse
unit.

In addition, the hotel provides the following services: restaurant,
meeting rooms, banquet rooms and karaoke together with free limousine
services between the exhibition center and the hotel for clients.

-   Marketing and Competitive Overview

Client Characteristics and Target Clients

The key market segment is Meeting, Incentive, Convention and Exhibition
(MICE) clientele. The guests include government ministries, businesses
from the nearby industrial parks, attendees of the various convention
events held at the Impact Exhibition and Convention Center.

U Chiang Mai

U Chiang Mai is the Company’s first hotel under the hotel chain “U
Hotels & Resorts”, which opened on June 1, 2008. It is a 4 star boutique
hotel with Lanna architecture on Rachadamnern Road in the city center of
Chiang Mai near the famous walking street ‘Ratchadamnern Road’. The
hotel offers 41 rooms of luxurious accommodation all tastefully
decorated to reflect the history of the region, combined with
contemporary design. The former residence of Chiang Mai’s governor has
been skillfully converted into the Residents’ Lounge in keeping with the
original Chiang Mai architectural style combined with a modern Thai
accent interior design in keeping with its heritage setting.

As part of the hotel chain “U Hotels & Resorts”, U Chiang Mai emphasizes
unique services on top of the usual international standard services. The
free supplementary services include 24-hour use of the room such that
clients can check-in and check-out at their convenience, breakfast at
any time and place selected by clients, Wi-Fi internet access throughout
the hotel, i-pod and docking station with speakers in all rooms, a
selection of DVD movies. Additionally, the hotel has converted a 100
year old building into a Reading Room that offers access to computers,
extensive collection of magazines, books ranging from general topics to
local Lanna history and culture for hotel guests.

The hotel’s Eat & Drink restaurant offers “no menu” cuisine in a bistro
setting while U Spa offers locally accented spa with Asian and European
style massages. Fitness facilities include wellness gym and swimming
pool. Additionally, the hotel also encourages environmental friendly
policies by providing heritage talks, guided walking and bicycle tours
and free bikes for all guests.

-   Marketing and Competitive Overview

Competitive Strategy

Hotels under the “U Hotels & Resorts” chain will be boutique hotels with
a difference that emphasize the history of the place, distinctive design
with uniqueness, as well as a focus on guests’ satisfaction and fully
integrated services.

The hotel is promoted via the hotel website and other websites for hotel
reservation such as Asiarooms.com, Zuji.com and Hotelrooms.com, etc.

High standard 24 hour services for the utmost satisfaction of customers
are provided so as to encourage repeat visits.

Client Characteristics and Target Clients

The guest mix is composed of Thai nationals and international tourists;
mostly from Germany, United Kingdom, Scandinavia and Europe; with market
segments covering both Business and Leisure travelers.

-   Industry Overview

[]Number of International Tourists

Source: Tourism Authority of Thailand

The number of international tourists has continued to grow although at a
diminishing rate. In 2008, the number of international tourist arrivals
was 14.54 million tourists, an increase of 0.55 percent from 2007.
During January to February 2009, the number of international tourist
arrivals at Suvarnabhumi Airport was 1.62 million tourists, a decline of
22.70 percent from the same period in 2008. The number of tourist
arrivals to Thailand by country of residence were East Asia (52.37%),
Europe (27.22%), America (6.19%), Oceania (5.47%), South Asia (4.85%),
Middle East (3.09%) and Africa (0.81%). All the markets have shown a
growing trend especially Vietnam, Laos, U.A.E., Malaysia, Norway and
Russia, with over 10 percent growth from 2007.

Factors affecting the tourism business in 2008 were the global economic
crisis, the prolonged unrest in the southern provinces, the political
instability especially the declaration of the state of emergency in
September, the closing down of Suvanabhumi Airport and Don Muang
Airports for ten days by the political group from the end of November to
mid December, which was the high season for tourism. All of these
incidents have significantly affected the image of the country. However,
the high number of international tourists during January to March 2008,
the off-season promotional activities by The Tourism Authority of
Thailand (TAT) and support from the Ministry of Foreign Affairs as well
as other agencies and authorities in ensuring the safety of tourists in
Thailand have helped to lessen the impact.

TAT targets the number of international tourist arrivals in 2009 at
14.00 million and revenue of 505 billion baht. As for domestic tourism,
TAT targets the number of Thai tourists at 87.00 million and revenue of
407.90 billion baht. To stimulate the Thai tourism business, the Cabinet
has approved budgets to organize roadshows, activities to promote
Thailand’s image by emphasizing (1) Thailand as a Meeting, Incentive,
Convention and Exhibition (MICE) Centre of Asia-Pacific with MICE Fast
Track (2) niche markets such as golf, diving and health tourism (3)
primary targets such as China, Japan, Russia and Arab Emirates (4)
secondary targets such as India, South Korea, Europe, Australia and New
Zealand. Additionally, the government has implemented the scheme waiving
visa fees for 42 nationalities for three months, starting March 2009.
TAT in conjunction with Thai Airways International Public Company
Limited will organize activities to enhance the Thailand tourism
industry as “Amazing Thailand Amazing Value” and increase the number of
tourists as part of the tourism recovery plan. As for domestic tourism,
the Cabinet approved a new stimulus policy allowing tax deductions from
organizing seminars and workshops related to tourism. The measure aims
at stimulating hotel businesses as well as tourism agencies.

According to various international surveys, Thailand is still one of the
most popular tourism destinations. In the 2008 Country Brand Index
(CBI), Thailand remains the world’s best value-for-money brand for the
third consecutive year. As per the New Post Office Holiday Costs
Barometer of tourist staples in 15 long-haul countries, Thailand heads
the field as the least expensive destination where costs are
significantly lower for UK tourists in five leading destinations than in
the Euro-zone. Furthermore, Bangkok has been voted by CondeNast
Traveler, USA to be the “Best International Business City 2008” and
again has been voted the ‘Best Tourist Country in The World’ in the 2009
Norwegian Grand Travel Award and Swedish Grand Travel Award, and more
recently, “The 2009 Travelers’ Choice Award” from the
TripAdvisor-branded website.

World Travel & Tourism Council (WTTC) has estimated the economic impact
of Travel & Tourism for Thailand such that in 2009 Thailand should have
an estimated market share of 24.43% of the South East Asia Tourism
Market in term of number of tourists, a decline of 4.4%. The revenues
from various segments of tourism as forecasted by WTTC are as follows:

Thailand Travel & Tourism Economic Research by WTTC

Unit : Billion Baht

  ----------------- --------- --------- --------- --------- --------- --------- ---------
                    2004      2005      2006      2007      2008E     2009F     2019F

  Personal Travel & 404.3     418.3     470.2     486.2     531.6     507.5     1,325.5
  Tourism                                                                       

  Business Travel & 144.4     154.5     154.7     163.8     171.6     155.5     356.3
  Tourism                                                                       

  Corporate         132.2     140.6     141.0     149.0     157.5     142.5     327.8

  Government        12.1      13.8      13.7      14.8      14.1      13.0      28.4

  Government        5.8       6.9       7.6       8.5       8.7       9.0       18.0
  Expenditures -                                                                
  Individual                                                                    

  Visitor Exports   525.1     486.7     629.4     711.9     722.7     692.2     1,707.1

  Travel & Tourism  1,079.6   1,066.4   1,261.9   1,370.4   1,434.7   1,364.2   3,406.9
  Consumption                                                                   

  Government        13.4      15.8      17.4      19.6      20.0      20.6      41.3
  Expenditure –                                                                 
  Collective                                                                    

  Capital           148.4     201.8     209.7     200.4     225.7     188.6     521.4
  Investment                                                                    

  Other Exports     122.7     145.9     165.7     175.6     193.7     190.4     554.8

  Travel & Tourism  1,364.1   1,430.0   1,654.8   1,766.1   1,874.0   1,763.7   4,524.4
  Demand                                                                        

  Travel & Tourism                                                              
  Direct Industry                                                               

  Gross Domestic    458.9     435.8     527.5     588.4     598.1     575.9     1,332.9
  Product                                                                       

  Travel & Tourism                                                              
  Economy                                                                       

  Gross Domestic    1,020.3   1,034.2   1,219.6   1,328.2   1,375.3   1,309.2   3,153.5
  Product                                                                       
  ----------------- --------- --------- --------- --------- --------- --------- ---------

E – Estimate; F-Forecast

Source: Travel & Tourism Economic Impact 2009-Thailand, World Travel &
Tourism Council

Bangkok Tourism

[]

Source: Tourism Authority of Thailand and Office of Tourism Development

In 2008, there has been a decline in the number of tourist arrivals at
accommodations in Bangkok due to the political turbulence and economic
recession. Although the figures for the fourth quarter have not yet been
disclosed, the number is expected to decline due to the reduced number
of long-haul international tourists as the result of the airports
closure. However the supply of rooms and the length of stay have shown a
rising trend despite the slight decline in the occupancy rate. In 2009,
the competition is expected to be intense with more hotel room schedules
to be added to the market. Real Estate Information Center (REIC)
estimated that the number of hotel building construction permits issued
in 2008 to be 39 buildings, an increase from 12 buildings in 2007. While
the number of international tourist arrivals expects to be lower due to
the worsening state of the major economies, which constitute a large
proportion of international tourism and business travel. The tourism
sector will focus on domestic tourism with support from the government
to stimulate the sector.

Chiang Mai Tourism

[]

Source: Tourism Authority of Thailand and Office of Tourism Development

The hotel business in Chiang Mai has always been competitive especially
in 2008 when accommodations experienced a lower number of international
tourist arrivals due to the political turbulence, the economic recession
and the airports closure despite Chiang Mai’s own international airport.
Despite the reduction in the number of tourists and average length of
stay, the supply of rooms still increased resulting in a lower occupancy
rate. However, the capital city of the north remains one of the most
popular destinations for domestic tourists with the ratio of Thai
tourists exceeding that of foreigners. In 2009, the competition is
expected to become more intense with the continuous increase of
accommodation supply, with Real Estate Information Center (REIC)
estimating that the number of hotel building construction permits issued
in 2008 to be 42 buildings, a decrease from 137 buildings in 2007.
However, a declining number of tourists especially international
tourists is expected. The development of the Chiang Mai International
Exhibition and Convention Center to promote the meeting, incentive,
convention and exhibition (MICE) business has been proposed. Domestic
tourism is likely to play a significantly increasing role in stimulating
tourism including in Chiang Mai.

(2) Office Building

TST Tower is operated by DNAL Company Limited and located on
Viphavadi-Rangsit road opposite the head office of Thai Airways
International Public Company Limited. It is a 24-storey building with a
total rental area of 15,875.5 sq.m. including a 15-storey office and a
8-storey car park for 267 cars. Present occupancy rate is 99 percent
with an average rental rate of 375 baht/month/sq.m. Most tenants are
medium and large corporations with long-term lease contracts. Key
clients include Office of Small and Medium Enterprises Promotion
(OSMEP), United Overseas Bank (Thai) Pcl. - Viphavadi-Rangsit 9 branch
and Rangsit University - Viphavadee Study Center.

TST Tower is a part of the security assets under the business
rehabilitation plan. The Court ordered the auction sales of the asset
and the sales proceeds will be shared among creditors pro rata to their
debt proportion. The Company held the auction sales and got the awarded
bidder on May 14, 2009.

-   Marketing and Competitive Overview

Competitive Strategy

Principally emphasizes quality of services and client satisfaction.

Client Characteristics and Target Clients

Tenants of the office building are corporations or organizations that
require office location with easy access to transportation routes such
as Viphavadi-Rangsit road, BTS skytrain and MRT underground.

-   Industry Overview

The deteriorating global financial crisis caused many international and
local companies to scale back expansion plans while continued political
predicaments in 2008 did not facilitate the improvement of foreigners’
confidence to invest in Thailand. These developments have directly
affected the rental office business. Overall demand in 2008 was less
robust with the net take-up declining by 37.1% from the previous year,
which is largely due to the relocation of the Administrative Court to
the Government Office Center. Supply increased to 7.80 million square
meters, an increase of 3.31% from the end of 2007.

Rental Rate of Office Buildings

  ----------------- ----------------- ----------------- -----------------
  Type              Oct - Dec 2007    Oct - Dec 2008    Change (%)

  CBD Grade A       739 baht/sq.m.    743 baht/sq.m.    +0.54%

  CBD Grade B       567 baht/sq.m.    584 baht/sq.m.    +3.00%

  Non-CBD Grade A   592 baht/sq.m.    600 baht/sq.m.    +1.35%

  Non-CBD Grade B   440 baht/sq.m.    446 baht/sq.m.    +1.36%
  ----------------- ----------------- ----------------- -----------------

Source: CB Richard Ellis

Despite various negative factors in 2008, the average rental rate of
Bangkok office space slightly increased except for CBD Grade B office
that saw a moderate increase of 3.0% due to limited new supply since
most new supply in CBD has been Grade A office with high rental rates
which offered tenants more negotiating room. Therefore, CBD Grade B
office has attracted more interest with much lower rental rates but the
same prime location advantages. The Bangkok office market experienced
significant increase in vacancy rates of 1.1% to 13.5% especially for
CBD Grade A offices with the vacancy rate reaching 16.7%, an increase of
8.2% from the end of 2007.

As regards the outlook in 2009, the vacancy rate is expected to remain
elevated due to the completion of new supply and weak demand. Hence the
market will remain competitive.

Since TST Tower is a Grade B office building and most of the tenants are
Thai companies with resilient performance or organizations who have
long-term lease contracts, TST Tower’s occupancy rate of 96% will not be
affected by the political predicaments and economic slow down.

(3) Residential Apartments

+----------------------+----------------------+-----------------------+
| Details              | The Royal Place 2    | The Grand             |
+----------------------+----------------------+-----------------------+
| Location             | Soi Mahardlekluang 2 | Soi Mahardlekluang 2  |
|                      |                      |                       |
|                      | near Rajdamri BTS    | near Rajdamri BTS     |
|                      | station              | station               |
+----------------------+----------------------+-----------------------+
| Land ownership       | Office of the Privy  | Office of the Privy   |
|                      | Purse                | Purse                 |
+----------------------+----------------------+-----------------------+
| Project type         | 26-storey            | 25-storey condominium |
|                      | condominium          |                       |
+----------------------+----------------------+-----------------------+
| Unit sold            | 315 units            | 312 units             |
+----------------------+----------------------+-----------------------+
| Remaining unit       | 56 units             | 26 units              |
| available for rent   |                      |                       |
+----------------------+----------------------+-----------------------+
| Remaining area       | 4,675.85 sq.m.       | 1,612 sq.m.           |
| available for rent   |                      |                       |
+----------------------+----------------------+-----------------------+
| Rental rate per unit | 416 baht/month/sq.m. | 426 baht/month/sq.m.  |
+----------------------+----------------------+-----------------------+

The Royal Place 2 and The Grand are residential apartments for long-term
lease of 30 years that were opened in 1993 and already closed for sale
except for fully furnished units for short-term lease of 1 year. Both
apartments consist of studio, 1 bedroom and 2 bedroom units. However,
there are only 1 bedroom units presently available. As supplementary
services, each apartment has a swimming pool and gym for residents’ use.
There are also some commercial spaces available for rent on the ground
floor for rental terms of 3 years with options to extend. Commercial
tenants are carefully selected for the harmony and convenience of the
residents and to enhance the atmosphere. Both projects are located in
Soi Mahardlekluang 2 in the city center near Rajdamri BTS station
offering convenient means of transportation.

-   Marketing and Competitive Overview

Competitive Strategy

The projects are situated in one of the best locations in Bangkok with
convenient transportation access and suitable room sizes ensuring price
competitiveness.

Client Characteristics and Target Clients

Target clients of the residential apartment projects are corporate
clients that plan to rent apartments for expatriate executives or
company’s guests as well as Thai and international clients with medium
or high income who want to rent a residential unit in the city center
with full facilities.

-   Industry Overview

Rental apartment market in Bangkok is very competitive particularly on
Rajdamri Road since there are many rental apartments, serviced
apartments as well as condominium projects located in Rajdamri and
nearby area and along BTS skytrain route. There were nearly 11,000
apartment units in downtown Bangkok as at the end of 2008. However, the
occupancy rate remained high at nearly 90%.

Rental Rate of Apartment

  ----------------- ----------------- ----------------- -----------------
  Zone              Oct - Dec 2007    Oct - Dec 2008    Change (%)

  Silom/Sathon      432 baht/sq.m.    461 baht/sq.m.    +6.71%

  Sukhumvit         420 baht/sq.m.    421 baht/sq.m.    +0.24%

  Riverside/Rama    321 baht/sq.m.    405 baht/sq.m.    +26.17%
  III                                                   

  Central Lumpini   373 baht/sq.m.    399 baht/sq.m.    +6.97%
  ----------------- ----------------- ----------------- -----------------

  ---------------- -------------------------------------------------------
  Zone             Location

  Silom/Sathon     Silom, Sathon, Surawong, and Narathiwas-Ratchanakarin
                   (north of Chan Road) Roads, as well as the sois in
                   between.

  Sukhumvit        Sukhumvit Road from Soi 1-65 and Soi 2-44, as well as
                   other sois in between.

  Riverside/Rama   Charoenkrung, Charoennakorn, Rama III, and Narathiwas-
  III              Ratchanakarin (south of Chan Road) Roads, as well as
                   the interlinking sois.

  Central Lumpini  Wireless, Ploenchit, Rajadamri, Chidlom, Langsuan,
                   Sarasin and Ruamrudee Roads, and other sois in between.
  ---------------- -------------------------------------------------------

Source: CB Richard Ellis

Despite the fact that the rental rate has significantly risen from the
end of 2007, the rental rate has declined during October - December
2008. Further weakening of the rental rate is expected in 2009 as
companies continue to cut costs, and the rental budget for executives is
one of the main options being considered. Many prospective tenants, most
of whom are salaried employees also face the prospects of payment or
benefit reduction and hence pricing will be a decisive factor.
Additionally, more condominium projects are scheduled to be completed in
2009 and many of these units will enter the rental market. With
increasing supply and weakening demand, the outlook for the rental
apartment market remains very competitive in terms of appropriate
pricing, prime location and the apartments’ environment. However, The
Royal Place 2 and The Grand offer an eminent location with very
competitive pricing compared to the market.

Business 3: Project Management

Baan Aur-Arthorn Project

+-------------+------------------+------------------+------------------+
| Details     | Baan Aur-Arthorn | Baan Aur-Arthorn | Baan Aur-Arthorn |
|             | Chonburi         | Prajuabkirikhan  | Saraburi         |
|             |                  |                  |                  |
|             | (Na Jomtien )    | (Hua Hin 3)      | (Kok Yae)        |
+-------------+------------------+------------------+------------------+
| Location    | Sukhumvit road   | Petchkasem road  | Panhonyothin     |
|             |                  | (Highway 4)      | road             |
|             | (Highway 3)      |                  |                  |
|             |                  | Km. 242-243      | Km. 91-92 (in    |
|             | Km. 155-156      |                  | Nong Khae        |
|             |                  |                  | Industrial       |
|             |                  |                  | Estate)          |
+-------------+------------------+------------------+------------------+
| Land        | National Housing | National Housing | Housing          |
| ownership   | Authority        | Authority        | Authority        |
+-------------+------------------+------------------+------------------+
| Project     | 154-0-59.6 rais  | 22-0-17.5 rais   | 72-1-98.2 rais   |
| area        |                  |                  |                  |
+-------------+------------------+------------------+------------------+
| Project     | 3-storey         | 4-storey         | 3-storey         |
| Type        | condominium      | condominium      | condominium      |
+-------------+------------------+------------------+------------------+
| Units       | 4,598 units      | 1,008 units      | 2,442 units      |
+-------------+------------------+------------------+------------------+
| Project     | 1,931.2 MB       | 423.4 MB         | 1,025.6 MB       |
| value       |                  |                  |                  |
+-------------+------------------+------------------+------------------+

In 2006, the Company has been selected by the National Housing Authority
to construct the Baan Aur-Arthorn projects in the amount of 20,000
units. At present, the number of units that the Company has been
approved to construct has been reduced from 9,584 units to 8,048 units
from the total of 20,000 units since the National Housing Authority
terminated Bang-Bor project in 2008. The Company is scheduled to
handover 4,216 units of completed houses by September 2009.

Four Points by Sheraton

Project management of this 4 star 32 storey hotel with 427 rooms is a
Turn Key project (a design and build contract) such that the services
include design, construction and selection of the hotel management team
after the hotel completion. The project is located in the central
business district (CBD) of Bangkok on Sathorn Road adjacent to Surasak
BTS skytrain station. Project value is approximately 2,200 million baht
and expected to be completed in the year 2011.

-   Marketing and Competitive Overview

Competitive Strategy

The Company has extensive experience in property development and
partners with experience in the hotel business. These credentials offer
the Company a competitive advantage when bidding to manage projects for
clients.

Client Characteristics and Target Clients

Target both private corporations and government agencies that plan to
develop property or hotel projects.

-   Industry Overview

Project management business is relatively competitive since there are
many companies that offer project management services. At present, many
property development companies, construction companies and international
and eminent local hotel chains have begun to offer professional
management or consultancy services in project management in their
specialized sector. Therefore, the Company has to compete with property
development, construction, hotel chains and other independent advisory
companies. However, the Company has advantages since the Company has
experience and experienced partners in all aspects of project management
including property development, hotel business and construction. Hence,
the Company can offer a complete project management service to clients.

-   Products and Services Selection

Land Selection

For Baan Aur-Arthorn projects, key factors that are taken into
consideration for land selection is land potential in accordance with
the marketing policy of each project. Business Development Department is
the unit that is responsible for selecting and proposing land in
suitable locations for consideration by the executives.

For hotel project management, the Company does not have to select the
land since the project owners already own the land, but the Company will
conduct a feasibility study to determine suitable business investment
for that land plot.

Contractor and Construction Material Selection

The Company will select contractors with appropriate experience and
qualifications for each project. The Company has entered into a joint
venture with Hip Hing Overseas Limited which is a construction expert
from Hong Kong with extensive experience in constructing large scale
projects in overseas and therefore has superior construction knowledge
and technology. Hip Hing Construction (Thailand) Company Limited has
assisted in facilitating the Company’s core businesses and enhancing the
Company’s efficiency in various aspects of management.

In 2007, the Company contracted to manage the Four Points by Sheraton
Hotel project at Surasak with an approximate project value of 2,200
million baht. The Company then contracted Hip Hing Construction
(Thailand) Company Limited to construct the project which is expected to
be completed by 2011.

Architecture Consultant Selection

The Company has a Project Development Department, with experienced
architects and engineers responsible for selecting consultants and
project architects to suit each project.

Hotel Management Selection

As regards its 5-6 star hotels, the Company will select an international
hotel chain with appropriate qualifications for each project to manage
each hotel. As regards its 3-4 star hotels, the Company will have these
hotels managed by the hotel chain under “U Hotels & Resorts” or may
select an international hotel chain with appropriate qualifications to
manage such hotels.