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dby isQuality Flat. High

Internet

Contents

4 7 8 9 12 14 20 45 48 50 51 56 72 76 79 86 93 94 102 145 146 147 148 152

Financial Highlights Dividend Policy Message from Chairman of the Board and Chairman of the Executive Committee Message from Managing Director Report of the Audit Committee Directors and Management Team Corporate Governance Directors’ Shareholding in the Company and its Subsidiaries of the Year 2007 Investment Structure of Shin Group Major Shareholders General Information of the Company and Subsidiaries Business Overview Major Developments Risk Factors Related Party Transactions Management’s Discussion and Analysis Board of Directors’ Responsibility for Financial Reporting Auditor’s Report Consolidated and Company Financial Statements Remuneration of Auditors General Information on Reference Persons Investor Information Contributions to Society Glossary


The more freedom of connection, The more unlimited distance.

 CS LOXINFO


Internet Data Center  CS LOXINFO


Financial Highlights

2007

2006

(Unit : Million Baht) 2005 2004

OPERATING RESULTS Revenues from Sales and Services 2,518 2,460 2,249 1,982 Total Revenues 2,600 2,512 2,321 2,004 Gross Profit (Loss) 1,218 1,147 1,061 939 Net Profit (Loss) 261 213 196 328 FINANCIAL POSITION Total Assets 2,368 2,615 3,012 2,561 Total Liabilities 743 807 854 662 Total Shareholders’ equity 1,625 1,808 2,158 1,899 Net Cash Flows from Operation 584 704 530 447 FINANCIAL RATIO Current Ratio 1.66 1.88 1.88 2.52 Debt to Equity Ratio 0.46 0.45 0.40 0.35 Gross Profit (Loss) Margin 46.86% 45.66% 45.70% 46.85% Net Profit (Loss) Margin 10.08% 8.46% 8.46% 16.38% Return on Assets 10.51% 7.56% 7.05% 18.41% Return on Equity 15.26% 10.72% 9.68% 17.28% Basic Earning per Share 0.42 0.34 0.31 0.55 Dividend per Share 0.40 0.74 0.45 0.40 Book Value per Share 2.59 2.89 3.45 3.02 No. of Shares (Million Shares) 627 625 625 625

Note: The Copany didn’t restate the year 2004’s comparative financial statements retrospectively for the deferred income tax accounting policy.

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2007 2006 2005 2004 Year

2007 2006 2005 2004 Year

2007 2006 2005 2004 Year

2007 2006 2005 2004 Year

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Vision & Mission

Customer are able to find or buy/sell local products & Services

Target Market Business to Business

Business to Consumer

Distribution Channels • Print Classifies (Daily & Weekly) • YellowPages Directory • Websites • Mobile Service and Call Center 1188 Existing Businesses • Internet Services • Print YellowPages Advertising • Mobile Contents Provider • Print Classifies (Auto, Job, Real Estate, Education, etc)

Integrated Vision & Mission Develop the business into services that are extendable from the existing or related businesses aimed at searching information to buy, sell or exchange in different ways for a variety of products e.g. cars, jobs, home, education and etc. with type of services that will be able to provide better convenience for customers across different needs.

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Dividend Policy The

Company’s dividend policy

The Company’s dividend policy is to pay dividend no less than 40 percent of net profit after tax, if the fund is not required elsewhere and subject to the economic and future project of the Company and the subsidiaries and the payment would have no significant effect on the running of the Company.

The Company’s dividend payments during the past three years are as follows:-

Dividend from Operations

2007

2006

2005

Payout Ratio (%) *

49.10

217.56

143.49

Total of dividend payment (Million Baht)

240.40

462.50

281.25

0.40

0.74

0.45

Dividend per share (Baht)

* Note: Payout Ratio year 2005 and year 2006 calculated from the consolidated net profit of the company (which equivalent

to the stand alone net profit of the company), for Payout Ratio year 2007 calculated from the stand alone net profit

of the company following by the company’ s dividend policy.

• The subsidiaries of the Company’s dividend policy Loxley Information Services Company Limited, Teleinfo Media Public Company Limited, AD Venture Company Limited and Watta Classifieds Company Limited its subsidiaries of the Company have the dividend policy is to pay dividend no less than 50 percent of net profit.

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Message from Chairman of the Board

and Chairman of the Executive Committee

Prof. Wongkulpat Snidvongs na Ayudyha, M.D. Chairman of the Board

Dr. Dumrong Kasemset Chairman of the Executive Committee

2007 was another year that CS LoxInfo Public Company Limited could build a good level of returns to shareholders. On top of the high dividend payout, the Company was able to allocate 222 million Baht of net profit to repurchase the shares with an objective to manage shareholder return in the long run. For 2007’s operating results, the Company reported total revenues of 2,600 million Baht, 55% was from the internet business and 34% was from Teleinfo Media Public Company Limited who operates the YellowPages business. As for the new investment in the past year, the Company had invested in a 60% stake in publishing businesses that primarily focused on selling classified ads for market popular products e.g. cars, jobs, homes, education. In view that such business is in line with the YellowPages business, which is categorized as another type of classified ad, thus when combining all products and services information, it puts the Company in a better position to carry on providing these service. In 2008, the Company plans to develop its products and services, especially online search and exchange of information via internet, call center or mobile phone in order to respond to varying needs of customers. In terms of the overall policy, the Company will place a strong emphasis on developing products and services that can satisfy demands from target customers, both corporate and individual. Moreover, the Company has realized the importance of being part of an enduring Thai society. From past to present, not only has the Company supported various kinds of social activities for the benefit of youths and several communities throughout Thailand, but also will continue to carry on activities that are successful and receive cooperation from social parties. On December 11, 2007, the Board was awarded the “Board of the Year Award for Exemplary Practice” organized by the Thai Institute of Directors Association, in cooperation with the Stock Exchange of Thailand (SET), and Board of Trade of Thailand. This award was for the recognition of the Board of having responsibility to the shareholders, and monitored the corporate in line with the Good Corporate Governance Principle. It was of benefits to all shareholders fairly and equitably. On behalf of the Board, and the Executive Committee, we will strive for efficient management for the good performance, with maximize and continual profit.

Prof. Wongkulpat Snidvongs na Ayudyha, M.D. Dr. Dumrong Kasemset Chairman of the Board Chairman of the Executive Committee  CS LOXINFO


Message from Managing Director CS LoxInfo Public Company Limited and Teleinfo Media Public Company Limited In 2007, the country’s overall internet business was still growing. For the internet business of CS LoxInfo Public Company Limited, it was still able to generate a good profit to shareholders compared to competitors in the market despite intense competition and Thai economic status which remained weak. For the YellowPages business, a media inwhich buyers look for sellers, it had further expanded into two dimensions. The first dimension expanded the existing target group that covers the purchasing and procurement of both government and private entities into personal consumptions that are necessary in daily life whereas the second dimension expanded sub-community areas in order to better facilitate specific consumptions in each city and each area. Such expansion spelled out two volumes of City YellowPages (City Pages) i.e. Nonthaburi and Pathumthani which in turn enlarged the customer base by approximately 10%. The Company is already set to expand into other provinces e.g. Phuket, Chiang Mai, Nakhon Ratchasima and Bangkok in the form of Urban Living YellowPages in the coming year. Overall, the Company will continue its policy of providing services aimed at developing products to increase variety and flexibility in order to serve various customer needs. In the mean time, the Company will still largely give importance to products and services in the private sector. Lastly, I and fellow teamwork in the Company are very determined to work hard to drive our business forward in a secure manner. At the same time, we would like to create benefit across all stakeholders, including shareholders, employees, government and Thai society as well as the development of information in Thailand. We therefore would like to thank all shareholders for your continued trust and support in the Company’s business.

Mr. Anant Kaewruamvongs Managing Director

Mr. Somchai Sinjananuruk Managing Director

Mr. Anant Kaewruamvongs Managing Director CS LoxInfo Public Company Limited

Mr. Somchai Sinjananuruk Managing Director Teleinfo Media Public Company Limited

 CS LOXINFO


Open-up your world the way you want; Everything is within reach.

10 CS LOXINFO


ADSL 11 CS LOXINFO


Report of the Audit Committee In year 2007, the Audit Committee (AC) membership composition was unchanged consisting of Mr. Prathueng Srirodbang, the Chairman, with expertise in legal matters, Mr. Gan Hui Beng, and Dr. Sillapaporn Srijunpetch, the other members of the AC with expertise in management, finance, accounting, and auditing, and being in position for four years, four years, and two years, respectively. All members possess qualifications as prescribed by the SET, own no shares in the Company, take no part in business management, and are not consultants or business partners of the Company or its related companies, and have not been appointed to protect the interest of directors or major shareholders. In 2007, the AC met six times in meetings involving top management, internal auditors, and external auditors to carry out its roles, duties and responsibilities under the Audit Committee Charter as well as to address matters specifically assigned by the Board. The following is a summary of significant matters addressed during the year. 1. Reviewing for Good Corporate Governance. The AC monitored to ensure the Company complied with relevant laws and regulations, like the SET and SEC regulations and notifications, the rules and regulations of NTC, as well as the general business laws. The Committee also reviewed for adequate, accurate, and timely information disclosure by the Company, particularly in the areas of connected transactions, to ensure that they had been entered into on arm’s length basis under normal commercial terms.

2. Reviewing Quarterly and Year End Financial Statements. The AC reviewed the financial statements for compliance with generally accepted accounting principles, and ensured information disclosed was clear, adequate, timely and meaningful for the shareholders and other users of the published financial statements. To this end, the AC reviewed the external auditor’s audit work plan, involved the external auditors in meetings to review the Financial Statements for material accounts, changes, adjustments, reserves, provisions and significant information disclosures. The AC met once with the external auditor and his audit team without management presence to affirm the auditor’s independence and to obtain independent feedback on the audit result and internal control environment. In year 2007, the external audit findings did not reveal material financial reporting issues. 3. Reviewing Company’s Risk Management. The AC reviewed the quarterly meeting minutes of the Company’s Risk Management Committee, paying particular attention to identification of risk factors and their treatment or mitigation, and provided constructive suggestions of ways identified risks could be more effectively managed. It was observed that the business environment in year 2007 had not changed dramatically from previous years. The major risks of the Company resided in the external operating environment relating to intense price competition, regulatory rules and conditions governing business operation, and third party support to the service infrastructure.

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4. Reviewing Company Internal Control. The AC reviewed the adequacy of internal control within the Company on a regular basis from the reports of both internal and external auditors. The AC would bring major items of concern to the attention of the Board together with the remedial action to be taken. This approach encouraged management of the Company to ensure adequate and effective internal control in achieving business focus, operations efficiency, effective risk management, safeguard of assets, and people management. Overall, the AC was of the opinion that the Company had adequate internal and management control. 5. Overseeing Company Internal Audit Function. The Office of Internal Audit of the Company reports directly to the AC on a functional basis. During the year, the AC reviewed and approved the Internal Audit annual work plan covering both the Company and its subsidiaries. In the review, the AC took into account sufficiency of headcount, effectiveness of the internal auditing process, and provided constructive suggestions on improvements. 6. Selection of External Auditors. The AC monitored the work quality and independence of the external auditors through the quarterly financial statements review and in private discussion. The AC also considered the scope of external audit work and related audit fee. For year 2007 external audit, the

AC recommended the re-appointment of Pricewaterhouse Coopers ABAS (PwC) as the external auditors of the Company for one more year at a fee of Baht 1,660,925 and to comply with SET regulation, another audit partner of PwC took over as the Company’s statutory auditor. In line with the Company’s practice of external auditors rotation, the AC evaluated and finally recommended KPMG to be the external auditors of the Company for year 2008. 7. S elf-assessment of the AC. The AC performed an assessment of its actual work covered in 2007 by reference to the AC charter and known best practices. The results showed that, on a practical basis, the scope of work covered by the AC in 2007 was in line with both the AC charter and established good practices. In conclusion, in the year 2007, the Audit Committee reviewed the performance of the Company and its subsidiaries in the areas of business operations, corporate governance, financial reporting, internal control and risk management, with the management, external auditors, and internal auditors, to ensure that the business of the Company was conducted with adequate internal control and risk management, and the reported financial statements were accurately prepared using generally accepted accounting principles.

Mr. Prathueng Srirodbang Chairman of the Audit Committee February 19, 2008 13 CS LOXINFO


Director Team

Prof. Wongkulpat Snidvongs na Ayudyha, M.D. Independent Director and Chairman of the Board

Dr. Dumrong Kasemset Director and Chairman of the Executive Committee

Mr. Pratheuang Srirodbang Independent Director and Chairman of the Audit Committee Mr. Gan Hui Beng Independent Director and Member of the Audit Committee

14 CS LOXINFO


Dr. Sillapaporn Srijunpetch Independent Director and Member of the Audit Committee

Mr. Mark Chong Chin Kok Director and Member of the Executive Committee

Mr. Viroj Tocharoenvanith Director

Mr. Tanadit Charoenchan Director and Member of the Executive Committee

Mr. Yongsit Rojsrivichaikul Director and Member of the Executive Committee

15 CS LOXINFO


Management Team

Mr. Anant Kaewruamvongs Managing Director

Mr. Pinyo Po-ngern Director-Information System

Mr. Anuwat Sanguansappayakorn Mrs. Aksara Assavapokee Chief Financial Officer Senior Director-Finance & Accounting

Dr. Somchai Kittichaikoolkit Director-Marketing

16 CS LOXINFO

Mr. Pote Punsiripote Director-Sales


Mrs. Suwanund Jatesawangsri Director-Customer Services

Mr. Kiat Intarasuriyawong Mrs. Suwanna Janesawatpong Director-Internal Audit Director-Technical & Operations

Teleinfo Media Public Company Limited

Mr. Somchai Sinjananuruk Managing Director

Mr. Surachart Kukasamerat Deputy Managing Director-Sales

17 CS LOXINFO


Feel closer together, no matter the distance.

18 CS LOXINFO


IPSTAR 19 CS LOXINFO


Corporate Governance The Board of Directors of the Company (Board) equates good corporate governance with good corporate citizenship, and has over the years sought to improve and strengthen corporate governance practices within the Company. As a fitting reward of this focus and effort, on December 11, 2007, the Board was a recipient of the “Board of the Year for Exemplary Practices” award in an event organized by the Thai Institute of Directors Association (IOD), in cooperation with the Stock Exchange of Thailand (SET), Board of Trade of Thailand, Federation of Thai Industries, Thai Bankers’ Association, Thai Listed Companies Association, and Federation of Thai Capital Market Organizations. This award was a recognition of boards that have performed their duties in accordance with good corporate governance (CG) principles, as well as attained an evaluation score of not less than 85% according to the criteria set by the Award Committee. The awards selection criteria were based on the OECD Principles of Good CG and the SET Guidelines for Board of Directors.

Corporate Governance Policy

The Company that leadership of a visionary and responsible Board of Directors, with accountability to stakeholders, that can motivate and guide management, using a sound management system that utilizes internal control to balance business priorities and operations transparency, while respecting the rights and equitable treatment of all shareholders, are the essential factors in maximizing long term shareholders value. To this end, the Board has established a good Corporate Governance Policy that addresses five key areas:-

1. Board’s structure, composition, roles and responsibilities 2. The rights and equitable treatment of Shareholders and the Roles of Stakeholders 3. Information Disclosure and Transparency 4. Internal Control and Risk Management 5. Code of Conduct

Since 2005, the Board has acknowledged the growing importance of Corporate Governance (CG) as representing a set of processes, policies, laws and institutions affecting the way in which a corporation is directed, administered or controlled. As a result, on an annual basis, the Board schedules a meeting in the early part of the year dedicated to the review and enhancement of the CG of the Company to ensure its relevance, compliance with SET mandates and guidelines, and adherence to good practices. In the Board of Directors Meeting No.3/2008, on March 19, 2008, CG Policy of the Company was reviewed. Moreover, to strengthen its focus on CG, the Board plans to set up a CG Committee.

20 CS LOXINFO


Chapter

1: Board of Directors

1. Leadership and Vision

The Board determined CS LoxInfo Public Company Limited (CSL), a company in Shin Corporation Group of companies, to be a leading Thai company, with successful, internationally acknowledged and implemented perspectives, whilst having a variety of businesses with state of the art technology, strong management and capable staff. The Board members have leadership, vision and independence in making decisions, and are responsible in governing the corporation and providing the greatest benefit to its stakeholders. As such, the duties, roles and responsibilities of the Chairman of the Board, the Chairman of the Executive Committee and the Managing Directors are clearly segregated. In determining the business direction, vision, mission and annual targets, the Board oversees overall business affairs of CSL Group, and makes approval of those above with the involving initiation of the management. After that, the Board will monitor the achievement of the approved direction and plans through the Executive Committee, on a regular basis. For 2008 the Board agreed to continue focusing on increasing benefits to its shareholders by targeting to corporate customers, which is the segment of our expertise and effective in generating both revenue and profit. By the way, we will also develop more of the content servicing to fulfill more of the customer needs. This should enable the synergy at the Group level to cover both consumer and corporate sectors with the concept of Localized Search and Transactions via various types of connection medium, ie., internet, mobile phone, or even the call center.

2. Composition of the Board of Directors, the Appointment, and its Independence The Board consists of nine qualified and experienced directors in various fields, i.e., telecommunication, legal, accounting and finance. Four are representatives of two major shareholders; one is the representative for CAT Telecom Plc. serving on behalf of the concession grantor; four are independent directors, including the Chairman of the Board, who account for more than one third of the Board. The full Board is as follows:-

Name 1. Prof. Wongkulpat Snidvongs na Ayudyha, M.D.* 2. Mr. Prathueng Srirodbang 3. Mr. Gan Hui Beng 4. Dr. Sillapaporn Srijunpetch 5. Mr. Viroj Tocharoenvanith

Position Independent Director / Chairman of the Board

Independent Director / Chairman of the Audit Committee / Chairman of the Nomination Committee Independent Director / Member of the Audit Committee / Member of Remuneration Committee Independent Director / Member of the Audit Committee Director / Representative of CAT Telecom

21 CS LOXINFO

Numbers of Shares holding (as at Dec 31, 2007)

-0- -0- -0- -0- -0-


Name

6. Mr. Mark Chong Chin Kok 7. Dr. Dumrong Kasemset 8. Mr. Yongsit Rojsrivichaikul 9. Mr. Tanadit Charoenchan

Position Director / Member of the Executive Committee / Member of the Remuneration Committee / Member of the Nomination Committee / Representative of major shareholder Director / Chairman of the Executive Committee / Chairman of the Compensation Committee / Member of the Nomination Committee / Representative of major shareholder Director / Member of the Executive Committee / Representative of major shareholder, Director / Member of the Executive Committee / Representative of major shareholder

Numbers of Shares holding (as at Dec 31, 2007)

-0- -0- -0- -0-

* Being appointed by the AGM No.1/2007 on April 23, 2007 as the Director and Chairman of the Board • During 2007, Mr. Vasant Chatikavanij resigned from his directorship which were a Director, a Member of the Executive Committee and a Member of the Remuneration Committee with effective date of December 26, 2007.

Secretary to the Board: Mr.Kamonmit Vudhijumnonk (Details of his profile and qualifications are shown on page 44) The Authorized Directors: Dr. Dumrong Kasemset or Mr. Yongsit Rojsrivichaikul or Mr. Tanadit Charoenchan cosigns with Mr. Viroj Tocharoenvanith or Mr. Mark Chong Chin Kok, altogether two directors, together with Company seal.

Directors Nomination and Appointment Process The Company has appointed the Nomination Committee (NC) to consider setting standards and policies in nominating a qualified director under the Company’s Articles of Association and relevant laws, as well as to nominate such a qualified person to be a director of the Company where the office is vacant. The NC considers the educational background and professional experiences of the candidates. It provides sufficient useful information, for the consideration or decision making of the Board and the shareholders. Moreover, it was determined that in every Annual General Shareholders Meeting, one third of the directors shall resign from the position. In case that the number of the directors cannot be divided into three, the closest to one third of the directors shall resign from their positions. In the first and second year after the Company was listed on the Stock Exchange of Thailand, the directors who were required to resign, applied the method of drawing lots to determine who should resign. On subsequent years, the longest serving directors would resign and might be re-elected to resume their positions. In case the office of Director is vacant, due to reasons other than by the rotational scheme, the Board shall elect a person who is qualified and has no prohibited characteristics in accordance with Clause 68 of the Public Company Act, B.E. 2535. The successful candidate would replace the Director at the next meeting. Unless the remaining tenure of the Director vacating office is less than two months, a director who has elected as a replacement shall retain this position only up to the remaining tenure of such preceding director. As stipulated in the Company’s Articles of Association, the shareholders meeting shall elect directors under the following rules and procedures. 1. All shareholders have votes equivalent to the number of shares being held. 2. Each shareholder may use all votes set forth in (1) to elect one or more directors. In case of electing a number of directors, those votes may not be divided in any proportion for any particular director. 3. Those who receive the highest respective votes shall be elected as directors in a number equal to those to be elected at such a meeting. In cases of tied votes cast, which would result in the number of directors greater than that permitted for the time being, the presiding chairman shall have a casting vote. 22 CS LOXINFO


The Company has not determined the maximum number of occasions a director can be re-elected, or his/ her age, but will take into consideration his/her time, capability and knowledge devoted to the Company in performing duties. Except an independent director, he/she shall not serve the directorship for more than three consecutive terms or a total of nine years. Qualifications of the Board of Directors Directors of the Company have qualifications and characteristics as specified in the relevant laws. They have knowledge, capability and ethics in carrying out business and sufficient time to devote their knowledge and capabilities in performing duties for the Company. It is acceptable for them to be directors in other companies as long as such directorship does not hamper their performance in carrying out duties at the Company. The Company also encourages the directors to attend training classes for roles and responsibilities of being a director, e.g., DAP, DCP, etc. in order to have a thorough understanding of their roles. The profile of the Company and its subsidiaries, relevant rules and regulations, and the Director’s Handbook, are normally provided to the Directors, especially for new appointtees. Business environment updates of the Company and its subsidiaries, e.g., market situation, technology, laws and regulations, etc. are also made to the Board regularly. This should enable the Board to have sufficient information, knowledge and understanding about the business of the Company, as well as the most current roles and responsibilities of being a director. To date, all of our directors, including the Managing Director have already attended the DAP or DCP course. We also encourage the Directors to have continuing education programs, to enable them to perform their duties effectively, including corporate governance matters. Independence and Definition of the Independent Directors We define “Independent Director” in the Company’s CG policy as a director, who is fully qualified with regards to independence, in accordance with the SET’s guidelines. He/She shall be able to equitably safeguard the interests of shareholders and prevent a conflict of interest. He/She shall also be able to give independent opinions in the Board Meetings. Details of his/her qualifications are as follow:- 1. Being a director who holds shares of not more than 0.5% of paid-up capital of the Company, affiliated company(s), associated company(s) or related company(s). Shares held by his/her relation(s) shall be included. 2. Being a director who does not take part in the management of the Company, affiliated company(s), associated company(s), and related company or is a majority shareholder(s) of the Company, and is not an employee, staff member, or advisor who receives a regular salary from the Company, affiliated company(s), associated company(s), related company(s), or is a majority shareholder of the Company. 3. Being a director who has no benefits or interests, directly or indirectly, in terms of financial and management of the Company, affiliated company(s), associated company(s), or majority shareholder(s) of the Company, and shall have no benefits or interests in such manner for a period of one year prior to the appointment as a director, except the Board has carefully considered and opined that such benefits or interests should have no impact on performing directorship duties and giving independent opinion. 4. Being a director who is not a related person or close relative of any management member or majority shareholder(s) of the Company. 5. Being a director who is not being appointed as a representative to safeguard the interests of the Company’s Directors, majority shareholder(s) or shareholders who relate to majority shareholder(s) of the Company. 6. Being a director who is able to perform duties, give opinions or report on the result of the assignments made by the Board with no pressures due to circumstances or controls of the management, majority shareholder(s) of the Company, including their related persons or close relatives. 23 CS LOXINFO


3. Chairman of the Board and Chairman of the Executive Committee The Company has a policy that the Chairman of the Board and the Chairman of the Executive Committee should be capable and possess appropriate experience and qualifications. They shall not be the same person, in order to balance the power between direction and management functions. The responsibilities of the Chairman of the Board and the Chairman of the Executive Committee are specified as follows:- • Chairman of the Board is a non-executive Director, has responsibility as the leader of the Directors, in directing and monitoring the performance of the Executive Committee in achieving its goals and objectives. He also chairs the Board meeting and the Shareholders meeting. Currently, our Chairman of the Board is the independent director. • Chairman of the Executive Committee takes responsibility as the leader of the executives of the Company, responsible to the Board for supervising the management of the Company to achieve planned assignment.

4. Authorities, Scope of Duties, and Responsibilities of the Board

The major authorities, duties, and responsibilities of the Board are as follows:- • To carry out duties in accordance with the laws, the objectives, the Articles of Association of the Company, and the resolutions of the shareholders’ meeting in good faith and with care to preserve the interests of the Company. • To determine vision, policy, and direction of the Company, as well as to oversee and superintend the executive to be in line with the policy effectively and efficiently for maximizing corporate value and shareholders’ wealth. • To consider to approve or propose to shareholder to approve where the case may be, the major transactions about business operations of the Company and its subsidiaries, such as new investment, asset acquisition or disposition, and other transactions specified by the law. • To approve or agree to the related transactions between the Company and its subsidiaries in compliance with the relevant notifications, regulations and guideline of the Stock Exchange of Thailand. • To arrange to have a reliable accounting system, financial reports, auditing, as well as oversee the evaluation process for an appropriate, effective, and efficient internal control, internal auditing, risk management, financial reporting, and monitoring. • To oversee for not having a case of conflict of interests between the concerned persons of the Company, as well as to approve the Connected transactions and Conflicting transactions. • To govern the Company to carry out the business ethically and in line with the principle of good Corporate Governance. • To review the Company’s CG Policy and assess due compliance at least annually. • To conduct Board appraisal, as a group, annually. • To appoint or delegate any power to any other persons to conduct the Company’s business subject to the control of and within the time as may be specified by the Board, whereby such appointment or delegation of power may, at anytime, be canceled, revoked, withdrawn or amended. Provided that the said appointment or delegation of power shall not be made in the manner that the Board or the person appointed or delegated then be able to approve any transaction to be entered into between the Board, the person appointed or delegated by the Board, or any person who may have conflicts of interest or any other benefits (as stipulated by the Office of the Securities and Exchange Commission) and the Company or the Company’s subsidiaries, unless the approval for such transactions is in compliance with the policy and rules already approved by the Board. • To determine each director and executive to have duty in preparing and submitting the Report of Securities Holding in the Company by himself (herself), his(her) spouse, his(her) immature children, to the SEC, by using the 59-1 and 59-2 form, and by the timeframe stipulated in the Notification of the SEC no. Sor Jor 14/2540. 24 CS LOXINFO


5. The Sub-Committees The Board has appointed four sub-committees to study and pre-review the matters under the Board’s responsibilities. 5.1 Audit Committee 5.2 Remuneration Committee 5.3 Nomination Committee 5.4 Executive Committee 5.1 Audit Committee (AC) No. of Meeting Attendance / Position Name No. of Meetings in 2007 1. Mr. Prathueng Srirodbang Chairman of the AC/Independent Director Member of the AC/Independent Director 2. Mr. Gan Hui Beng 3. Dr. Sillapaporn Srijunpetch Member of the AC/Independent Director

6/6 6/6 6/6

The AC consists of three independent directors. Two are financial and accounting experts Mr. Gan Hui Beng and Dr. Sillapaporn Srijunpetch, and one is a legal expert Mr. Prathueng Srirodbang. Every member has qualifications as specified under the guideline of the SET and meets the requirements of an independent director as defined in the Company’s CG policy. The AC has a three year term, the same as the directorship position. Those, who complete the term of the AC membership can be re-elected for no more than nine years or three consecutive terms. The authorized duties of the AC are as specified in the Charter of the AC. The AC also reviews the Charter for appropriateness on a yearly basis, and makes further proposals for approval by the Board. The details of the latest version of the AC Charter are as follows:-

• To carry out a review of the Company’s financial statements with the management and external auditors to ensure that the statements accurately present the financial position of the Company and that they are prepared in accordance with generally accepted accounting principles. • To give recommendations to the Board about the changes to the Company’s accounting policies and financial authorities, delegated to EXCOM and the Managing Director. • To ensure that the company has appropriate and efficient internal control and audit systems. • To carry out a review to ensure that the Company operates in compliance with the Securities and Exchange Acts, the regulations of the Stock Exchange of Thailand and any other relevant laws. • To consider, select ,and propose the appointment and audit fees of the company’s external auditor to the Board, as well as approve its audit plan and meet privately with the external auditor at least once a year. • To review policies for the approval of non-audit services and make recommendations. • To review the work of the Risk Management Committee of the Company. • To review and provide opinions on material connected transactions for compliance and conflict-of- interests, as well as accurate and complete disclosure. • To review and give opinions on the performance of the Internal Audit Office and coordinate work with the Company’s external auditors. 25 CS LOXINFO


• To ensure all necessary assistance and cooperation required by the external and internal auditors are provided by the management. • To prepare an annual AC activities report which must be signed by the Chairman of the AC and disclosed in the Company’s annual report. • To consider ant appraise annually, the performance of the Assistant Director of Internal Audit. • To consider and approve the Internal Audit Charter, annual internal audit plan, budget and manpower of the Internal Audit Office and the adequacy of the internal audit function. • To report the AC activities to the Board at least once during each quarter. • To review the scope of duties, responsibilities and to conduct AC performance self-assessment on a yearly basis. • To have full access and the cooperation of management. • To have the power to invite members of the management, officers and employees of the Company or external parties, to give statements, to attend a meeting and to deliver necessary documents. • To have direct access to the external auditors in the investigation of any matter within its terms of reference. • To have the power to engage consultant(s) or independent person(s) to provide opinions or advice if necessary, in accordance with the Company’s regulations, and expenses (with no budget provided) under the approval of authority given by the Managing Director. • To carry out other works designated by the Board of Directors and agreed to by the AC.

The AC has conducted a self-assessment for 2007, by team, to review the actual performance against the Charter of the AC and Best Practice. The results were reported to the Board during Board Meeting No. 3/2008 on March 19, 2008. The results showed that both the Charter of the AC and Best Practice was conformed to.

5.2 Remuneration Committee (RC)

Name 1. Dr. Dumrong Kasemset 2. Mr. Gan Hui Beng 3. Mr. Mark Chong Chin Kok

Position Chairman of the RC Member of the RC / Independent Director Member of the RC

No. of Meeting Attendance / No. of Meetings in 2007 2/2 2/2 0/2

• Mr. Vasant Chatikavanij resigned from the Member of the RC with effective date of December 26, 2007.

The RC consists of three directors. Two are representatives of the major shareholders, and one is an independent director. The scope of duties and responsibilities are as follows:- • To appropriately determine necessary remuneration, both monetary and non-monetary, annually in order to provide necessary incentives and retain the Board, Sub-Committees and senior executives of the Company. • To prepare policies and criterias to determine remuneration of the Board and senior executives, for approval by the Shareholders Meeting, and/or the Board, depending on each case. • Report to the Board, and be responsible for providing explanations and clarifications about

26 CS LOXINFO


remuneration of the Board and senior executives in Shareholders Meetings. • To report on the remuneration policies, rationale and objectives, as well as to make disclosures in the annual report. • Others, as assigned by the Board. In 2007, the RC met twice to consider and approve the allocation of warrants under ESOP Grant V program to the directors and staff, as well as approve the remunerations for independent directors and external directors.

5.3 Nomination Committee (NC)

Name

Position

1. Mr. Prathueng Srirodbang 2. Dr. Dumrong Kasemset 3. Mr. Mark Chong Chin Kok

Chairman of the NC / Independent Director Member of the NC Member of the NC

No. of Meeting Attendance / No. of Meetings in 2007 3/3 3/3 1/3

The NC consists of three directors. Two are representatives of major shareholders and one is an independent director acting as the Chairman of the Committee. The scope of duties and responsibilities are as follows:- • To determine policies and criteria for nominating the Board and Sub-Committees of the Company. • To nominate directors by considering suitable candidates for approval by the Board, and/or the Shareholders Meeting, depending on each case. • To consider suitable candidates to be nominated as Chairman of the EXCOM, if there is vacancy, as well as to determine criteria for succeeding the senior executives. • Others, as assigned by the Board. In 2007, the NC met three times to consider appointing directors and determining their authority for the replacement of retired directors, in accordance with the company’s Articles of Association.

5.4 Executive Committee (EXCOM)

Name 1. Dr. Dumrong Kasemset 2. Mr. Mark Chong Chin Kok 3. Mr. Tanadit Charoenchan 4. Mr. Yongsit Rojsrivichaikul

Position Chairman of the EXCOM Member of the EXCOM Member of the EXCOM Member of the EXCOM

No. of Meeting Attendance / No. of Meetings in 2007 13/13 7/13 10/11 10/12

• Mr. Vasant Chatikavanij resigned from the Member of the EXCOM with effective date of December 26, 2007.

The EXCOM consists of the directors of the Company and Executive Chairman of Satellite and International Business Line as the Chairman of the EXCOM. The scope of duties and responsibilities are as follow:- 27 CS LOXINFO


• To determine the policies, directions, strategies and core management structure for business operations in line with economic and competitive conditions that have been defined and declared to Shareholders, for approval by the Board. • To determine the business plans, budgets, and working authority limits of the Company for approval by the Board. • To monitor efficient policy implementation and operating procedures according to favorable business conditions. • To monitor the Company’s operating performance to be in line with the approved business plan. • To consider any material investment projects. • To report the Company’s performance to the Board on the monthly basis. • Having authority to approve financial transactions of not higher than 400 million baht. In case of the finance banking transactions, for example, deposit, lending, hedging instrument on foreign exchange and interest rate, the transaction value and details requires the Board’s approval. The EXCOM may delegate an executive or individual to carry out or acknowledge a business according to the discretion of the EXCOM. • The approval of the EXCOM or the delegates shall not be for the connected transaction(s) or where the Committee may have a conflict of interest according to the Articles of Association of the Company or that defined by the regulatory body (ies). • Others, as assigned by the Board.

Management Team As of December 31, 2007 the Company’s Management is composed of the following people:- Name Position 1. Dr. Dumrong Kasemset 2. Mr. Anant Kaewruamvongs 3. Mr. Anuwat Sanguansappayakorn 4. Mrs. Aksara Assavapokee 5. Mr. Pinyo Po-ngern 6. Dr. Somchai Kittichaikoolkit 7. Mr. Pote Punsiripote 8. Mrs. Suwanund Jatesawangsri 9. Mr. Kiat Intarasuriyawong 10. Mrs. Suwanna Janesawatpong

Chairman of the EXCOM Managing Director Chief Financial Officer Senior Director - Finance & Accounting Director - Information System Director - Marketing Director - Sales Director - Customer Services Director - Technical & Operations Director - Office of Internal Audit

Scope of Authorities and Responsibilities of the Managing Director The Managing Director (MD) has authority according to that being delegated by the Board, which is in compliance with the rules, regulations, and Articles of Association of the Company. The MD did not conduct or enter into transaction that he or conflicting person may have conflict of interests with the Company or the subsidiaries, as defined by the Notifications of the SEC. Exemption is on the case of related transactions where no approval is required from a shareholders’ meeting, as announced by the SET regarding the Principle, Procedure, and Disclosure of Related Transactions of the listed companies, and the approval of internal management of the Company and its subsidiaries.

28 CS LOXINFO


Approval authority of the MD The MD has been delegated of the financial authority from the Board at the maximum of 10 million baht for budgeted capital expenditure.

6. The Meeting of the Board of Directors The Board has policy to schedule the Board’s meetings of at least six times a year. The meetings are normally pre-scheduled for the entire year. Special meeting can be held where necessary. In organizing a meeting, the Chairman of the Board and Chairman of the EXCOM will agree to with the agenda items. Secretary to the Board will coordinate with the relevant parties and distribute the notice to the meeting along with the meeting agendas and meeting document to the directors at not less than seven days in prior to the meeting date for the Board to have sufficient time to digest the information. In year 2007, the Board met for nine times. Normally, each meeting would take about two to three hours, with the Chairman of the Board chairing the meeting. He is responsible for overseeing the meeting process and managing time for each agenda to be sufficient for the directors to discuss and express their opinions independently, taking into consideration the benefit of the shareholders and stakeholders on a fair basis. Management will provide sufficient information for the Board consideration. Where a director may have conflict of interest with any meeting agenda, he/she will not be present in the meeting for that agenda item. After that, the Secretary to the Board will finish preparing the minutes of the meeting by 14 days, keep such the minutes and supplemented documents, as well as support and follow up matters for facilitating the Board to perform duties in compliance with applicable laws, rules and regulations, and shareholders’ meeting resolutions.

In 2007, in summary, there were below meetings.

Meeting

Director

AGM

BDM

ACM

NCM

RCM

EXCOM Meeting

No. of Meeting Attendance / No. of Meeting in 2007 1. Prof. Wongkulpat Snidvongs na Ayudyha, M.D.* 2. Dr. Dumrong Kasemset 3. Mr. Prathueng Srirodbang 4. Mr. Gan Hui Beng 5. Dr. Sillapaporn Srijunpetch 6. Mr. Viroj Tocharoenvanith 7. Mr. Mark Chong Chin Kok 8. Mr. Yongsit Rojsrivichaikul 9. Mr. Tanadit Charoenchan

- 1/1 1/1 1/1 1/1 1/1 1/1 1/1 1/1

5/5 9/9 9/9 8/9 9/9 8/9 6/9 6/6 6/7

- - 6/6 6/6 6/6 - - - -

- 3/3 3/3 - - - 1/3 - -

* Being appointed by the AGM No. 1/2007 on April 23, 2007 as the Director and Chairman of the Board. • Mr. Vasant Chatikavanij resigned from the directorship with effective date of December 26, 2007.

29 CS LOXINFO

- 2/2 - 2/2 - - 0/2 - -

- 13/13 - - - - 7/13 10/11 10/12


7. Directors and Managements Remuneration

On every February, the RC considers, analyzes, and recommends remuneration of the directors to the Board for further recommending to the shareholders for approval. The RC also approves the remuneration calculation scheme of the management. The remuneration of the directors and the management shall get along well with their duties and responsibilities, be comparable to the industry standard, and attractive enough to retain the qualified directors and management. The Company has policy to remunerate only to the independent directors and external directors. The executive directors do not receive remuneration as a director. The remuneration for each management will link with the operating performance of the Company and his/her working performance. The warrants for purchasing the Company’s common shares are also offered to the management and employees under the Employee Stock Option Program (ESOP) to attract and retain them with the Company. In year 2007, the Company paid following remuneration.

1. Monetary Remuneration for the Board • Total monetary remuneration for the Board, only independent directors or non-executive directors, for the period as at December 31, 2007 comprised of director monthly compensation, annual remuneration and meeting fees totaling Baht 3,707,696 for five directors. The details of which are as follow:- (Executive directors did not receive remuneration as directors.)

1. Prof. Wongkulpat Snidvongs na Ayudyha, M.D. 2. Mr. Prathueng Srirodbang 3. Mr. Gan Hui Beng 4. Dr. Sillapaporn Srijunpetch 5. Mr. Viroj Tocharoenvanith

Position

Remuneration for 2007* (Million Baht)

Independent Director and Chairman of the Board Independent Director and Chairman of the AC Independent Director and Member of the AC Independent Director and Member of the AC Director and representative of CAT Telecom Plc.

1.037 0.820 0.675 0.675 0.500

Name

* Director monthly compensation and meeting fees for the period of January to December 2007, and accrued annual remuneration which would be paid in February 2008.

2. Monetary Remuneration for the Executives • Total monetary remuneration for the Executives, for the period ended December 31, 2007 comprised of salary, bonus, provident fund, and other fringe benefits was Baht 20,821,950 (excluded the Executive Chairman who receives remuneration from Shin Satellite Plc., the indirect shareholder of the Company). 3. Other Remunerations 3.1 Other Remuneration for the Board members Apart from the monetary remuneration for the independent directors and external directors, the Company provided non-monetary remuneration to the Chairman of the Board, who is an independent director, in form of fringe benefit of car and fuel. 30 CS LOXINFO


3.2 Employee Stock Option Program (ESOP) The Company plans to issue and offer warrants to purchase the Company’s ordinary shares to the directors and employees to motivate and reward their past performances which should thereby benefit the Company in the long run. Under a continuous program, the Company will issue and offer such warrants continually for five-year period subject to shareholders’ approval in each year. At the end of 2007, the Company has issued and offered five programs. The details of which are as follow:-

Descriptions

Offering Size

Program 1

Program 2

Program 3

Program 4

Program 5

3,096,300

2,213,700 **

8,559,100

8,354,300

8,354,400

Offering Price

Bt 0

Warrant Term

Not more than 5 years from the Issuance and Subscription Date 1 unit of warrant per 1.24101

Exercise Ratio* Exercise Price*

(Baht per share)

Descriptions

The director and management of the Company and its subsidiaries receiving of the warrants

1 unit of warrant per 1.4758 3.120

1 unit of warrant per 1

7.252

7.487

5.686

14-May-04

16-May-05

31-May-05

Program 1 No. of % of No. Warrant of allocated Warrant (Units) issued

Program 2 No. of % of No. Warrant of allocated Warrant (Units) issued

Program 3 No. of % of No. Warrant of allocated Warrant (Units) issued

Program 4 No. of % of No. Warrant of allocated Warrant (Units) issued

Program 5 No. of % of No. Warrant of allocated Warrant (Units) issued

966,400

11.29

1,002,500

12

2,690,100

32.20

Issuance and Subscription Date

1 unit of warrant per 1.21856

3.580

31-May-06 30-May-07

1. Mr. Anant Kaewruamvongs

1,000,000 32.30

704,600

2. Dr. Somchai Kittichaikoolkit

550,000 17.76

202,000

7

250,000

2.92

417,700

5

540,000

6.46

-

162,200

5.62

350,000

4.09

417,700

5

917,400

10.98

5.63

426,400

14.78

572,700

6.69

501,300

6

1,186,500

14.20

3. Mr. Anuwat Sanguansappayakorn 4. Mrs. Aksara Assavapokee

- 174,200

24.4

5. Mr. Somchai Sinjananurux

-

-

-

-

771,700

9.02

835,400

10

-

-

6. Mr. Surachart Kukasamerat

-

-

-

-

753,300

8.80

853,400

10

-

-

7. Mr. Charles Han

-

-

-

-

-

-

459,500

5.5

-

-

8. Mr. Pote Punsiripote

-

-

-

-

-

-

-

-

715,900

8.57

* The Company has adjusted the warrant right, as a result of 2006 dividend payment at a rate of more than 50% of net income after corporate income tax under the conditions specified in the prospectus. The latest right adjustment on both the exercise ratio and exercise price was on March 28, 2007. ** At Extraordinary General Shareholders Meeting No. 2/2004, held on June 14, 2004, the shareholders approved the issuing and offering of 2,885,900 units of warrants for ESOP Grant 2. However, the Company could only allocate 2,213,700 units and the remaining warrants expired without being allocated to other programs.

31 CS LOXINFO


8. Succession Plan CG policy of the Company specified that there should be a succession plan for the position of Chairman of the EXCOM and senior management to build up a confidence among shareholders and staff that the operations of the Company will not be interrupted. The NC was assigned in determining the criteria and the succession plan.

9. The Meeting of Non-executive Directors (NED) CG policy of the Company also specified that there should be the meeting of the NED without the presence of executive directors from time to time as appropriate, in order to be an opportunity for the NED to discuss any subjects of interest related to the business operations of the Company. The conclusions made at each meeting shall also be reported to the Board and the Chief Executive Officer. On Nov 14, 2007, the NED, consisted of 4 independent directors and 1 external director met as the first NED meeting of the Company. The Chairman of the Board presided over the meeting. The major matters agreed and presented to the Board Meeting No. 9/2007 on November 14, 2007 were the plan that the Company may establish a CG Committee, and the importance of having a continuous adequate level of internal control system and internal auditing under the concept of COSO standard. COSO stands for The Committee of Sponsoring Organizations of the Treadway Commission, the US commission concerning the studying and analysis of fraudulent financial reportings and developing recommendations for public companies and their independent auditors, for the US SEC and other regulators, and for educational institutions.

10. The Performance Assessment of the Board of Directors In the Board Meeting No. 3/2008 on March 19, 2008 the Board has conducted self-assessment for the year 2007 as a group, to assess the effectiveness and efficiency of the Board performance. In overall, the Board was satisfied with the aggregated diversified knowledge and experiences of the Board members, as well as the openness and teamwork environment of the Board. However, Board members also recommended more information to be provided in prior to the meeting, e.g., background information about business plan, working reports from the sub-committees, etc.

Chapter 2: Shareholders’ Rights and Equitable Treatment and Roles of the Stakeholders

1. Shareholders’ Rights and equitable treatment

The Board respects the shareholders rights and has duty in protection of the benefit of every shareholder equitably, in regardless of type of shareholders, i.e., retail, foreign, institutional, or wholesale investor. Every shareholder shall have below rights and equitability. • Right in receiving shares certificate, shares transferring, acknowledging the information about operating performance and business policy, regularly and timely. • Right in receiving profit sharing, equitably. • Right in attending the shareholders meeting, expressing opinion, giving recommendation, and being involved in decision making in significant changes. • Right in appointing the directors.

32 CS LOXINFO


2. Shareholders’ Meeting The Company has policy to conduct the shareholders’ meeting to be in compliance with the law, the Articles of Association and the guideline stipulated by the regulatory bodies. In year 2007, there was one shareholders’ meetings, an Annual General Meeting (AGM). We regard the convenience of the shareholders in attending the meeting as the major factor in organizing each meeting. We used the Auditorium, at 9th Floor of Shinawatra Tower III on Vibhavadi Rangsit Road, Bangkok, which can serve up to 300 attendees. In the Shareholders’ meeting, every shareholder has rights and equitable treatment in acknowledging information by receiving of the notice to the meeting and meeting document by 14 days in prior to the meeting. The document normally contains necessary information, opinion of the Board, background or rationale information for each agenda which deem useful for the consideration of the shareholders. In the notice to the meeting, we always notify the document requiring for meeting registration, as well as proxy form and instruction together with name list and profile of at least one independent director to be the agent for the shareholders who cannot attend the meeting. All such the notice and meeting document will always be published in the Company’s website for not less than 14 days, and in newspaper for 3 consecutive days in prior to the meeting. The minutes of the meeting shall also be published in the website for the shareholders’ access by 14 days after the meeting date. In meeting registration, we use the advanced and reliable registration system to facilitate the shareholders and quick votes counting. The registration process will also be prepared to be ready at least two hours before beginning of the meeting. In 2007 AGM, the Chairman of the Board and the directors have attended the meetings, with the details on page 29, to answer inquiries might arise. Before beginning of the meeting, the Chairman of the Meetings explained the voting method for common understanding of the shareholders. The voting results were recorded in the registration system. We also followed the Article of Associations of the Company by using one share one vote basis for all agendas. When the Chairman conducted the meetings by agenda, he encouraged the shareholders to express opinion and inquire the meeting with sufficient timeframe. When there was no more query in an agenda, the voting results, which the shareholders had voted during the registration process, would be announced. There was also no case that various unrelated matters were gathered for approval in one agenda item. 3. Role of the Stakeholders The Company is aware of the rights of stakeholders and has policy to ensure the importance of the rights by the appropriate prioritization of all stakeholders, which are shareholders, employees, executives, customers, partners, creditors, society, and the public. Cooperation between stakeholders shall be made according to their roles and responsibilities so that the Company can run smoothly and strongly to fairly benefit all groups of stakeholders as follow:- Shareholders Employees

: We strive to be a good representative of shareholders in carrying out business to maximize shareholders satisfaction with regards to the sustainable growth of the value of the Company in the long run, good and continual return, and the transparent and reliable information disclosure to the shareholders. : We concentrate on the employees, the most valuable resource and the critical factor to the corporate success. Therefore, we attempt developing them for their continual growth, for building up skills, knowledge, and corporate culture, for their own benefit in a good working environment. We provide them the trainings both by their own 33 CS LOXINFO


Customers Partners Creditors Competitors Society

interest for their professional development (Individual Development Plan), and by the value that we would like to cultivate them. We pay attention to the staff employment, appointment, transfer, on ethical basis. We stand on the compliance with the labor law or higher standard. We are also responsible to make a safety working environment. : We strive to make our customers confident and satisfy with the top quality services with continual improvement at appropriate charges. We provide them the undistorted service information, keep good relationship, and do not disclose their information without prior permission except for the information shall be disclosed to the public by law. : We are aware of the importance of partners and regard them as a critical factor in mutual building up of value to the customers. Therefore, we make relationship with groups of partner equitably for mutual business interest with no breaching of reputation, or law. : We pay attention to the importance of the creditors and strive to keep good relationship with them on the best interest of the Company. We also hold to the contract conditions committed with the creditors. : We are aware of the benefits from competition toward business management and continual service quality improvement for the good sake of customers. Therefore, we have policy to support and promote for the free and fair trade, and have no policy to compete by means of having their information illegally and immorally. : We, a Thai company, are aware of and realize in the country, public, and society that we should also be responsible and support for the activities, especially, to the children and people in remote area. These days, they need to access to technology more than in the past. So, we try to provide knowledge along with technology by avoiding the information may be harmful to the society.

Chapter 3: Information Disclosure and Transparency

The Company values the transparency and sufficient information disclosure by determines as a role and responsibility of the Board in disclosing accurate, complete, thorough, and timely financial, operational, and other relevant information for the shareholders and stakeholders to have equal information. The disclosure shall be made through the communication channels of the SET, SEC, and Company website at www.csloxinfo.com and the Group website at www.shincorp.com

Investor Relations We have established the Investor Relations Unit as the representative in communicating useful news and information to the shareholders, investors, securities analysts, and other relevant parties. In 2007, we met institutional investors and retail investors for 11 times to promote good understanding to the current situation and the transparency of the disclosed information, as well as to allow them inquire the matters may be questionable. The interested person can contact for more information at Tel. 0 2263 8000 ext 5184, or at email address: ir@csloxinfo.net. Apart from the disclosure responsibility on financial information and quarterly and yearly operating performance, which is required by laws, we also arrange press conference immediately on the next working day 34 CS LOXINFO


after we disclose the above mentioned information to the SET. This is for the information to reach investors, interested people, and the public timely and thoroughly. Moreover, we arranged additional briefing of quarterly and yearly operating performance to the investors, analysts, and interested people as below details:- • 1Q2007 Quarterly Briefing on May 16, 2007 • 2Q2007 Quarterly Briefing on August 16, 2007 • 3Q2007 Quarterly Briefing on November 19, 2007 • 2007 Annual Briefing on February 26, 2008 Chapter 4: Internal Control and Risk Management

1. Internal Control

The Board is responsible for the Company’s system of internal control to safeguard shareholders’ investment and the Company’s assets. Internal control facilitates the effectiveness and efficiency of operations, helps ensure the reliability of internal and external reporting, assist compliance with laws and regulations, and strengthens overall risk management of the environment within which the business operates. To this end, the Board has empowered the Audit Committee, as part of its charter, to monitor the working of the internal control system within the Company and report its findings to the Board on a regular basis. The Audit Committee is assisted by the external and internal auditors in its review and supervision of internal control operations within the Company. Both the external and internal auditors are independent of Management. The Internal Audit Office of the Company reports functionally and directly to the Audit Committee. The annual work plan of the Internal Audit Office forms the basis upon which the systems within the Company relating to internal control, risk management and corporate governance are reviewed and reported to the Audit Committee and Board of Directors.

On an annual basis, the Audit Committee evaluates the adequacy and efficient operation of the internal control system of the Company by reference to the following five factors:-

1. Organization control and environment 2. Risk management 3. Management control activities 4. Information and communication 5. System monitoring

The findings of this evaluation are then reported to the Board. In the Board Meeting No. 2/2008, on February 20, 2008, based on the report of the Audit Committee, the Board concluded that the Company had adequate internal control and risk management system that was operating effectively. 2. Management Supervision

The Board sets the business direction and objectives of the Company, and approves the business plan developed by the Management to fulfill the goals of the Company. Management performance is reviewed on an ongoing basis through achievements of the business plan and budget, and other financial and operational reports submitted to the Board. Management performance is evaluated annually in the determination of compensation rewards. 35 CS LOXINFO


3. Risk Management The Company has a policy to manage all risks which may have an impact on the Company, to ensure that the Company operates within an appropriate and acceptable risk level. The Chairman of the EXCOM has appointed a Risk Management Committee (RMC), comprising of the MD as the Chairman, and the heads of major departments as the committee members. The Office of Internal Audit acts as the secretary to the committee to ensure risks are properly assessed and the appropriate measures are taken to manage them. The RMC determines the risk level of each risk factor identified and monitors the high risk areas closely. The RMC also monitors market trends to identify market related risks that need to be addressed. Previously, the Office of Internal Audit updated the AC the risk management on a quarterly basis and the Board on an annual basis, including proposals to revise the Risk Management Policy. In the Board meeting No. 3/2008 on March 19, 2008 the Board approved increasing number of reporting of risk management effectiveness to the Board from annually to quarterly. Chapter 5: Code of Conduct

The Company agreed having corporate Code of Conduct as a part of the CG policy to be the guideline and good practice for the directors, management, and staff to hold and strictly practice the established Code of Conduct. The Code of Conduct covers the following major topics. 1. Business Competition The Company has a policy of free and fair competition, not bind the distributors to solely sell the products of the Company. The Company shall not acquire information on its competitors by any illegal or unethical methods.

2. Conflicts of interest In the case that the directors, management, and staff face the situation that their personal interests may conflict with the interest of the Company, the Code of Conduct discusses below major issues for being the guideline for consideration. • The prohibition of personally receiving and offering of money or other benefit to the customer, partner, and anybody they are dealing with on behalf of the Company. Receiving of gifts or business entertainment should be avoided where the value of gifts or nature of the entertainment deem inappropriate or far greater than for normal business relationship. • The directors, management, and staff members at all levels shall not engage in any other business that affects their performance, duties and working hours in the Company. A director or an executive, under the definition of the SEC, shall report his(her) business involvement with the Company to his(her) direct supervisor, whether it is his(her) direct business, his(her) family, or other legal entity, by using the specific Company’s form, as soon as his(her) firstly joining with the Company, immediately after entering into such business, and on a yearly basis. The completed form shall be secured at an appropriate Department. Every member of the Company is prohibited from participating in any other business which is in competition with the companies in the Group, regardless of whether the management or the staff directly or indirectly benefit from that business. 36 CS LOXINFO


• The holding of director position in a company outside the Group shall not infringe on relevant laws and regulations. Approval by the authorized person shall be obtained in advance, except for being a director in a non profit organization. • The directors, executives, and staff can participate in political activities under the terms of the Constitution of Thailand. However, they could not claim the status of being a Company employee for the purpose of political activities, or to mislead that the Company is support or in favour of a political party. The Company has the policy of politics neutrality. The directors, executives and staff shall resign if they would like to accept a political related position, or stands for both regional and national election. • In the case of connected or related parties transactions within the Group, the rules and procedures of granting approval shall be conformed by upholding the best interests of the Company as if dealing with outside parties (on arms’ length basis). In case of a large scale transaction that the approval authorized person is the director or Managing Director, the guideline regarding approval making is available in clause no. 4 and 5 of chapter 1. For the smaller scale of transactions, the Office of Internal Audit will regularly review for the appropriateness of the price and conditions of the transactions. Overall connected and related parties transactions will also be reported by company and type of the transactions to the AC on quarterly basis, for their consideration that the transactions are of normal business transactions similar to those transacted with external parties.

We also pay strong attention to the process of entering into the connected or related parties transactions and the information disclosure according to the relevant rules and regulations of the SET and Thai accounting standard because it is the matter should be easily sensitive to the shareholders especially the minority ones.

3. Use of inside information, trading of the Group’s securities, and distribution of information or

interview to the press or the public

The corporate Code of Conduct specified that the directors, management, and staff, at all levels, shall not use significant inside information of the Group, and has not yet been disclosed to the public, for their own or others’ interests. Although investment and trading in the Group’s securities is the individual’s right and freedom, the Code of Conduct requires the directors, management, and staff to avoid or suspend trading of the Group’s securities for a period of one month in prior to the disclosure of all financial statements to the public, in order to prevent the conflict of interest. In addition, for compliance with the clause No. 59 of the Securities and Exchange Act, B.E. 2535, the Company requires the directors and management, including their spouse and minor child to report the securities holding and changes by the form and on the time specified by the regulation. Reporting to the Board for acknowledgement was also made on quarterly basis. The distribution of any information relating to the Company shall be made only by the person having direct responsibility, or being specifically assigned, on the basis of fact, correctness, and prudence.

37 CS LOXINFO


Directors and Management Team Prof. Wongkulpat Snidvongs na Ayudyha, M.D.

Age 67 Title Independent Director and Chairman of the Board Shareholding* None Relationship with Management None Highest Education Doctorate Degree FRCOG:D.Obst.RCOG (UK):MB.BS (London) MRCS.LRCP(England) Governance Training of IOD DCP: Directors Certification Program Class 89/2007 Experience Present Consultant Obstetrician and Gynecologist in private practice Honorary Consul of Republic of Lithuania in Thailand Committee Member, Development Cooperation Foundation 2007 - Present Independent Director and Chairman of the Board, CS LoxInfo Plc. 1997 - Present Member of the Council, Thai Red Cross 1994 - Present Member of Red Cross Properties Management Committee 1992 - 2000 Director of Central Bureau, Thai Red Cross 1991 - 1997 Professor in Obstetrics and Gynecology 1972 - 1991 Lecturer, Assistant Professor and Associate Professor at Department of Ob. Gyn. Faculty of Medicine, Chulalongkorn University Illegal Record in past 10 years None

Mr. Prathueng Srirodbang Age Title Shareholding* Relationship with Management Highest Education Governance Training of IOD Experience Illegal Record in past 10 years

69 Independent Director and Chairman of the Audit Committee None None Mini MBA, Thammasat University Barrister-at-law The Thai Bar Bachelor Degree in Laws, Thammasat University DAP: Directors Accreditation Program Class 11/2004 2003 - Present Independent Director and Chairman of the Audit Committee, CS LoxInfo Plc. 1998 - Present Director, National Insurance Co., Ltd. 1999 - 2002 Chairman of the Audit Committee, Chumporn Palm Oil Industry Plc. 1994 - 1998 Deputy Permanent Secretary, Ministry of Commerce None

Mr. Gan Hui Beng Age 57 Title Independent Director and Member of the Audit Committee Shareholding* None Relationship with Management None Highest Education Bachelor Degree in Economics, University of Wales Institute of Science and Technology, U.K. Governance Training of IOD DCP: Directors Certification Program Class 47/2004 Experience 2003 - Present Independent Director and Member of the Audit Committee, CS LoxInfo Plc. 2006 - 2006 Deputy President Director, Bank Buana Indonesia 2000 - 2005 Managing Director and Chief Executive Officer, UOB Radanasin Bank Plc. 1987 - 1999 Vice President, Citibank N.A. Illegal Record in past 10 years None * Includes holdings by spouse and minor children as of December 31, 2007.

38 CS LOXINFO


CS LoxInfo Public Company Limited Dr. Sillapaporn Srijunpetch Age Title Shareholding* Relationship with Management Highest Education Governance Training of IOD Experience Illegal Record in past 10 years

44 Independent Director and Member of the Audit Committee None None Doctorate Degree in Accounting, Manchester Business School, University of Manchester, England DAP: Directors Accreditation Program Class 51/2006 2005 - Present Independent Director and Member of the Audit Committee, CS LoxInfo Plc. 1997 - Present Lecturer of Master of Accounting Profession, Faculty of Commerce and Accountancy, Thammasat University 2004 - 2006 Director of Master of Accounting Profession, Faculty of Commerce and Accountancy, Thammasat University 1995 - 1997 Director and Group Financial Controller, Jardine Matheson (Thailand) Limited 1986 - 1995 Senior Manager, PriceWaterhouseCoopers ABAS Limited None

Mr. Viroj Tocharoenvanith

Age Title Shareholding* Relationship with Management Highest Education Governance Training of IOD Experience Illegal Record in past 10 years

43 Director None None Master Degree in Computer Engineering, Asian Institute of Technology ACP: Audit Committee Program Class 13/2006 DCP: Directors Certification Program Class 59/2005 FN: Finance for Non-Finance Director Class 18/2005 2006 - Present Director, C&C International Venture Co., Ltd. Executive Vice President, CAT Telecom Plc. 2005 - Present Director, Thai - Amadeus South East Asia Co., Ltd. 2004 - Present Director, CS LoxInfo Plc. 2004 - 2006 Vice President (Class 10), Other Business Partners Department, CAT Telecom Plc. 1999 - 2004 Director (Class 9), Telecom Business Development Department, CAT Telecom Plc. 1996 - 1998 Senior Manager (Class 8), The Communications Authority of Thailand 1985 - 1996 Engineer (Class 3), The Communications Authority of Thailand None

* Includes holdings by spouse and minor children as of December 31, 2007.

39 CS LOXINFO


Mr. Mark Chong Chin Kok Age Title Shareholding* Relationship with Management Highest Education Governance Training of IOD Experience Illegal Record in past 10 years

44 Director and Member of the Executive Committee None None Master Degree in Business Administration, National University of Singapore Master Degree in Research in Electronics System, ENSERG, INPG, Grenoble France DAP: Directors Accreditation Program Class 57/2006 2008 - Present Executive Vice President (Networks), Singapore Telecommunications Ltd. 2003 - Present Director and Member of the Executive Committee, CS LoxInfo Plc. 2006 - 2007 Vice President (Global Accounts), Singapore Telecommunications Ltd. 2001 - 2006 Chief Executive Officer, SingTel Global Office, Singapore Telecommunication Ltd. 1999 - 2001 Managing Director, Shinwatra Paging / Advanced Paging 1997 - 1999 General Manager (Paging) / GM (Technology), Singapore Telecommunication Ltd. 1994 - 1997 Director (Sea, Air & Communications) Ministry of Communications 1990 - 1994 Head of Department, Ministry of Defence None

Dr. Dumrong Kasemset Age 53 Title Director and Chairman of the Executive Committee Shareholding* None Relationship with Management None Highest Education Doctorate Degree in Electrical Engineering, Massachusetts Institute of Technology, USA Governance Training of IOD DAP: Directors Accreditation Program Class 2/2003 Experience 2004 - Present Director and Chairman of the Executive Committee, CS LoxInfo Plc. 2000 - Present Member of the Executive Committee, Advanced Info Service Plc. Member of the Executive Committee, Shin Corporation Plc. 1999 - Present Director and Member of the Executive Committee, Shin Satellite Plc. 1997 - Present Chairman of the Executive Committee, Satellite and International Business, Shin Corporation Plc. 2004 - 2007 Director and Member of the Executive Committee, ITV Plc. 1994 - 2000 President, Shinawatra Satellite Plc. 1995 - 1997 Vice Chairman of the Executive Committee, Policy, Shinawatra Group 1993 - 1994 Executive Vice President, IBC Cable TV 1991 - 1992 Group General Manager, IBC Cable TV Senior Manager - Business Development, Shinawatra Group 1989 - 1991 Program Manager Integrated Optoelectronics, GE Aerospace, New York, USA 1986 - 1989 Manager, Ga As IC Materials, Microwave Semiconductor Co., Ltd., Siemens Group, New Jersey, USA Illegal Record in past 10 years None

* Includes holdings by spouse and minor children as of December 31, 2007.

40 CS LOXINFO


Mr. Yongsit Rojsrivichaikul Age Title Shareholding* Relationship with Management Highest Education Governance Training of IOD Experience Illegal Record in past 10 years

43 Director and Member of the Executive Committee None None Master Degree in Business Administration, California State University, USA DCP: Directors Certification Program Class 89/2007 2007 - Present Director and Member of the Executive Committee, CS LoxInfo Plc. 2004 - Present Executive Vice President - Marketing & Sales, Shin Satellite Plc. 1991 - 2004 Vice President - Marketing, Shin Satellite Plc. Vice President - Marketing & Sales, Shin Satellite Plc. Vice President - International Sales, Shin Satellite Plc. Assistant Vice President - Marketing and Sales, Shin Satellite Plc. Assistant Vice President - International Sales, Shin Satellite Plc. Marketing and Sales - Manager, Shin Satellite Plc. Business Development - Manager, Shin Satellite Plc. None

Mr. Tanadit Charoenchan Age Title Shareholding* Relationship with Management Highest Education Governance Training of IOD Experience

Illegal Record in past 10 years

40 Director and Member of the Executive Committee None None Master Degree in Business Administration, Sloan School of Management, Massachusetts Institute of Technology, USA Master Degree in Science (Computer), Chulalongkorn University DAP: Directors Accreditation Program Class 66/2007 Feb 2008 - Present Executive Vice President - Finance and Accounting, Shin Satellite Plc. 2007 - Present Director and Member of the Executive Committee, CS LoxInfo Plc. 2004 - Jan 2008 Acting General Manager, Shin Broadband Internet (Thailand) Co., Ltd. 2002 - Jan 2008 Vice President - Finance and Accounting, Shin Satellite Plc. 2000 - 2001 Assistant Vice President - Finance and Accounting, Shin Satellite Plc. 1995 - 1999 Department Manager- Finance and Accounting, Shin Satellite Plc. 1992 - 1995 Accounting Manager, IBC Plc. 1989 - 1992 Senior Auditor, SGV Na-Thalang & Co., Ltd. None

Mr. Anant Kaewruamvongs

Age Title Shareholding* Relationship with Management Highest Education Governance Training of IOD Experience Illegal Record in past 10 years

46 Managing Director 0.045% None Master Degree in Management, SASIN Graduate Institute of Business Administration of Chulalongkorn University DCP: Directors Certification Program Class 66/2005 DAP: Directors Accreditation Program Class 45/2005 2005 - Present Managing Director, CS LoxInfo Plc. Feb 2007- Mar 2007 Director and Member of the Executive Committee, CS LoxInfo Plc. 1999 - 2005 Deputy Manager, CS LoxInfo Plc. 1997 - 1999 General Manager, CS Satellite Phone Co., Ltd. 1995 - 1997 General Manager, Lao Telecommunications Co., Ltd. 1993 - 1995 Business Development Manager, Internation Broadcasting Corporation None

* Includes holdings by spouse and minor children as of December 31, 2007.

41 CS LOXINFO


Mr. Anuwat Sanguansappayakorn Age Title Shareholding* Relationship with Management Highest Education Governance Training of IOD Experience Illegal Record in past 10 years

42 Chief Finance Officer None None Master Degree in Accounting, Chulalongkorn University DCP: Directors Certification Program Class 88/2007 1998 - Present Chief Finance Officer, CS LoxInfo Plc. 1997 - 1997 Planing Manager, Thai Capital Final Finance & Securities Co., Ltd. 1996 - 1997 Manager, Krung Thai Finance & Securities Co., Ltd. 1994 - 1996 Accounting Manager, Multi Credit Corporation of Thai 1988 - 1993 Senior Auditor, Deloitte Touch Thomatsu Jaiyos None

Mrs. Aksara Assavapokee Age Title Shareholding* Relationship with Management Highest Education Governance Training of IOD Experience Illegal Record in past 10 years

58 Senior Director - Finance & Accounting None None Bachelor Degree in Accounting, Chiangmai University None 2001 - Present Senior Director - Finance & Accounting, CS LoxInfo Plc. 1998 - Present Director, T.A.S. Co., Ltd. 1998 - 2000 Manager, A.C.N. Center Co., Ltd. 1995 - 1997 Manager, T.A.S. Co., Ltd. 1981 - 1994 Accounting Manager, Kodak (Thailand) Co., Ltd. 1973 - 1980 Auditor, Cooper & Lybun Co., Ltd. None

Dr. Somchai Kittichaikoolkit Age Title Shareholding* Relationship with Management Highest Education Governance Training of IOD Experience Illegal Record in past 10 years

41 Director - Marketing None None Doctorate Degree in Electronic Engineering, Tohoku University, Japan None 1999 - Present Director - Marketing, CS LoxInfo Plc. 1997 - 1998 IT Specialist, Shinawatra Information Technology Co., Ltd. 1994 - 1996 Marketing Manager, Shinawatra Computer and Communications Co., Ltd. None

* Includes holdings by spouse and minor children as of December 31, 2007.

42 CS LOXINFO


Mr. Pinyo Po-ngern

Age Title Shareholding* Relationship with Management Highest Education Governance Training of IOD Experience Illegal Record in past 10 years

42 Director -Information System 0.001% None Master of Science (Applied Statistics and Information Technology), National Institute of Development Administration None 2006 - Present Director - Information System, CS LoxInfo Plc. 2004 - 2006 Assistant Director - Information System, CS LoxInfo Plc. 2000 - 2004 Assistant vice President- Software System, Loxley Information Services Co., Ltd. 1997 - 2000 IT Manager, Mahaphant Fibre - Cement Plc. 1992 - 1997 Assistant Managing Director, Data Products Systems Co., Ltd. None

Mr. Pote Punsiripote Age Title Shareholding* Relationship with Management Highest Education Governance Training of IOD Experience Illegal Record in past 10 years

45 Director - Sales None None Master Degree in Business Administration (Marketing), Cleveland State University, USA None 2006 - Present Director - Sales, CS LoxInfo Plc. 2005 - 2006 Sales Director, Asiasoft Corporation Co., Ltd. 2004 - 2005 Sales Promotion Manager, Niyompanit Co., Ltd. (Chiang Mai) 2003 - 2004 Bangkok Sales Manager, Whirlpool (Thailand) Co., Ltd. Product Manager, Whirlpool (Thailand) Co., Ltd. None

Mrs. Suwanund Jatesawangsri Age Title Shareholding* Relationship with Management Highest Education Governance Training of IOD Experience Illegal Record in past 10 years

42 Director - Customer Support 0.005% None Master Degree in Business Administration, University of the Thai Chamber of Commerce None 2006 - Present Director-Customer Support, CS LoxInfo Plc. 2003 - 2006 Assistant Director- Sales, CS LoxInfo Plc. 1996 - Present Assistant Director - Sales, Loxley Information Services Co., Ltd. None

* Includes holdings by spouse and minor children as of December 31, 2007.

43 CS LOXINFO


Mr. Kiat Intarasuriyawong Age Title Shareholding* Relationship with Management Highest Education Governance Training of IOD Experience Illegal Record in past 10 years

37 Director - Technical and Operations 0.003% None Bachelor Degree in Electronic Engineering, King Mongkut’s Institute of Technology Ladkrabang None 2007 - Present Director - Technical and Operation, CS LoxInfo Plc. 2003 - 2007 Acting Director - Technical and Operation, CS LoxInfo Plc. 1992 - 2003 Assistant Vice President, Loxley Information and Services Co., Ltd. 1991 - 1992 Computer Engineer, Linestel Co., Ltd. 1990 - 1991 Computer Engineer, Thai Technologies and Computer Co., Ltd. None

Mrs. Suwanna Janesawatpong Age Title Shareholding* Relationship with Management Highest Education Governance Training of IOD Experience Illegal Record in past 10 years

39 Director-Internal Audit None None Master Degree, Master of Business Administration (Finance), Chulalongkorn University None 2003 - Present Head of Internal Audit, CS LoxInfo Plc. 2001 - 2003 Internal Audit Specialist, Shin Satellite Plc. 1997 - 2001 Internal Audit, Securicor (Thailand) Ltd. 1994 - 1997 Treasury Manager, Metropolis Trust and Securities Plc. 1990 - 1992 Senior Marketing Officer, Nation Multimedia Plc. None

Mr. Kamonmit Vudhijumnonk Age Title Shareholding* Relationship with Management Highest Education Governance Training of IOD Experience Illegal Record in past 10 years

56 Secretary to the Board of Directors None None Master Degree in Laws (LL.M), University of London Master Degree in Laws (LL.M), Magna Cum Laude, University of Brussels None 2004 - Present Secretary to the Board of Directors, CS LoxInfo Plc. 2002 - Present Vice President - Legal, Shin Satellite Plc. 1999 - 2001 Assistant Vice President - Legal, Shin Satellite Plc. 1995 - 1998 Assistant Vice President - Legal, Shinawatra Computer & Communication Plc. 1994 - 1995 Lawyer, Couderts Brothers, Bangkok Office 1993 - 1994 Lawyer, Baker & McKenzie, Bangkok Office 1978 - 1993 Legal Officer, Office of the Juridical Council Association (Office of the Council of State) None

* Includes holdings by spouse and minor children as of December 31, 2007.

44 CS LOXINFO


Directors’ Shareholding in the Company and its Subsidiaries of the Year 2007

Name

CS LoxInfo Plc. Ordinary Shares

Position

Prof. Wongkulpat Snidvongs Chairman of the Board na Ayudyha, M.D.* of Directors Dr. Dumrong Kasemset Director Mr. Pratheung Srirodbang Chairman of the Audit Committee Mr. Gan Hui Beng Member of the Audit Committee Dr. Sillapaporn Srijunpetch Member of the Audit Committee Mr. Viroj Tocharoenvanith Director Mr. Mark Chong Chin Kok Director Mr. Yongsit Rojsrivichaikul Director Mr. Tanadit Charoenchan Director

Name

- - - - - - - - -

- - - - - - - -

- 1 - - - - 1 - 1

- 1 - - - - - - 1

- - - - - - - - -

- - - - - - - - -

2006

- - - - - - - - -

Ordinary Shares

Ordinary Shares

Ordinary Shares

2007 2006 2007 2006 2007

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - by spouse and children age under 20. As at December 31, 2007, the number of ordinary shares includes holding

2006 2007

Watta Classifieds Co., Ltd.

Shares

Prof. Wongkulpat Snidvongs Chairman of the Board of Directors na Ayudyha, M.D.* Dr. Dumrong Kasemset Director Mr. Pratheung Srirodbang Chairman of the Audit Committee Member of the Audit Committee Mr. Gan Hui Beng Dr. Sillapaporn Srijunpetch Member of the Audit Committee Mr. Viroj Tocharoenvanith Director Mr. Mark Chong Chin Kok Director Mr. Yongsit Rojsrivichaikul Director Mr. Tanadit Charoenchan Director

- - - - - - - - -

AD Venture Co., Ltd. Ordinary Shares

Hunsa Dot Com Sodamag Corp Shineedotcom Co., Ltd. Co., Ltd. Co., Ltd.

Ordinary

Loxley Information Services Co., Ltd. Ordinary Shares

2007 2006 2007 2006 2007 -

Position

Teleinfo Media Plc. Ordinary Shares

* Being appointed by the AGM No.1/2007 on April 23, 2007 as the Director and Chairman of the Board.

45 CS LOXINFO

- - - - - - - - -

2006 2007

- - - - - - - - -

- - - - - - - - -

2006

- - - - - - - - -


Wherever you go... fill your calls with pleasure.

46 CS LOXINFO


International Roaming

47 CS LOXINFO


Investment Structure of Shin Group Shin Corporation Plc.1), 2) Advanced Info Service Plc. 2) 42.71% Digital Phone Co., Ltd. 98.55% Wireless Device Supply Co., Ltd. 99.99% Advanced Datanetwork Communications Co., Ltd. 51.00% Advanced Contact Center Co., Ltd. 99.99% Advanced MPay Co., Ltd. 99.99% Advanced Magic Card Co., Ltd. 99.99% AIN GlobalComm Co., Ltd. 99.99% Super Broadband Network Co., Ltd. 99.93% Data Network Solutions Co., Ltd. 49.00% Advanced Wireless Network Co., Ltd. 99.93%

Shin Satellite Plc. 2) 41.28% Shin Broadband Internet (Thailandv) Co., Ltd. 99.99%

Shenington Investments Pte Ltd. 1) 51.00%

CS LoxInfo Plc. 2) 39.89%

Cambodia Shinawatra Co., Ltd. 100%

Teleinfo Media Plc. 99.99%

Lao Telecommunications Co., Ltd. 49.00%

Loxley Information Services Co., Ltd. 99.86%

IPSTAR Co., Ltd. 99.14%

AD Venture Co., Ltd. 1) 99.99%

IPSTAR Australia Pty Ltd. 100%

Shineedotcom Co., Ltd. 99.99%

IPSTAR New Zealand Ltd. 100%

Hunsa Dot Com Co., Ltd. 99.99%

IPSTAR DO BRASIL 3) 100%

Sodamag Corp Co., Ltd. 99.99%

Star Nucleus Co., Ltd. 70.00%

Watta Classifieds Co., Ltd. 60.00%

Spacecode LLC 70.00%

NTU (Thailand) Co., Ltd. 71.85%

Mobile from Advance Co., Ltd. 99.99%

48 CS LOXINFO

IPSTAR International Pte. Ltd. 100% IPSTAR Global Services Ltd. 100%


As of February 4, 2008

I.T. Applications and Services Co., Ltd. 99.99%

ITV Plc. 2) 52.92% Artware Media Co., Ltd. 99.99%

Payment Solution Co., Ltd. 99.99%

Media Connex Co., Ltd. 60.00% Matchbox Co., Ltd. 99.96%

1) Holding Company 2) Listed Company on the Stock Exchange of Thailand 3) On process of set up and register the Company Remark • Data Line Thai Co., Ltd., which is a subsidiary of Advance Info Service PLC, registered of its cessation with the MOC on November 29, 2007, currently on process of liquidation. • Com Chat Co., Ltd., Idea Maker Co., Ltd. and Decode Co., Ltd. which are subsidiaries of Watta Classifieds Co., Ltd., registered of its cessation with the MOC on November 30, 2007, currently on process of liquidation.

49 CS LOXINFO


Major Shareholders

The first top 10 shareholders on the closing

The first top 10 shareholders on the closing date of the registration book as of August 24, 2007 are as follows:- No.

1

Name

No. of Shares Percentage of Investment

SHIN BROADBAND INTERNET (THAILAND)

COMPANY LIMITED

2

250,099,990

39.90

SINGAPORE TELECOMMUNICATION LIMITED

84,057,030

13.41

3

PHATRA SECURITIES PUBLIC COMPANY LIMITED

48,561,500

7.75

4

POINT ASIA DOT COM (THAILAND) COMPANY LIMITED

29,727,710

4.74

5

THAI NVDR COMPANY LIMITED

29,465,800

4.70

6

UBS SECRITIES LLC-HFS CUSTOMER SEGREGATED 26,055,200

4.16

ACCOUNT

CITIGROUP GLOBAL MARKETS LIMITED-IPB

7

CUSTOMER COLLATERAL ACCOUNT

13,434,900

2.14

8

HSBC (SINGAPORE) NOMINEES PTE LIMITED

11,080,900

1.77

9

NORTRUST NOMINEES LIMITED

8,208,200

1.31

10

GERLACH & CO.-CHARLES SCHWAB FBO CUSTOMERS

5,426,700

0.87

Total

506,117,930

80.75

Source: Major Shareholders as of August 24, 2007 prepared by Thailand Securities Depository Co., Ltd. The investors can find for more information in website: www.set.or.th before Annual General Shareholders Meeting for the year 2008 date.

• The major shareholders whose behaviors have had a significant influence on the operational policies or

management of the company. Shin Broadband Internet (Thailand) Limited held by Shin Satellite Public Company Limited in the amount of 94,728,493 shares, or 99.99 percent of the paid-up capital. MR. SURIN UPATKOON 68.00%

At the present, Shin Corporation Public Company Limited is a major shareholder of Shin Satellite Public Company Limited. The structure of shareholding is as follows:-

CYPRESS

(Temasek Holdings)

29.90%

MR. PONG SARASIN 1.27% MR. SUPHADEJ POONPIPAT 0.82%

CYPRESS

(Temasek Holdings)

48.99%

ASPEN

SIAM COMMERCIAL BANK 5.78% CEDAR 54.50%

(Temasek Holdings)

41.73%

SHIN

50 CS LOXINFO

KULARB KAEW 45.22%


General Information of the Company and Subsidiaries

General Information of the Company

General Information of Subsidiaries

CS LoxInfo Public Company Limited (CSL)

Nature of Business Head Office Branch Office Registration No. Telephone Fax Website Registered Capital Par Value Paid-up Capital

Internet data center services, Internet access and satellite uplink-downlink Service for domestic and international communications 414 Phaholyothin Road, Samsennai, Phayathai, Bangkok 10400 971, 973 President Tower, 11th Floor, Ploenchit Road, Lumpini, Pathumwan, Bangkok, 10330 0107546000377 0 2263 8000 0 2263 8132 www.csloxinfo.com 660,849,474 shares Baht 1 Baht 626,899,344

Teleinfo Media Public Company Limited (TMC)

Nature of Business Publishing telephone directories and advertising 414 Phaholyothin Road, Samsennai, Head Office Phayathai, Bangkok 10400 273 Soi Sang U-thai, 50 Sukkhumvit Branch Office 1 Road, Phakhanong, Klongtoey, Bangkok 25th - 28th Floor, Vanit Bldg. 2, 1126/2 Branch Office 2 New Phetchaburi Road, Makkasan, Ratchathewi, Bangkok 10400 0107548000609 Registration No. Telephone 0 2262 8888 0 2262 8899 Fax Website www.teleinfomedia.net 17,353,400 shares Registered Capital Par Value Baht 10 Paid-up Capital Baht 173,534,000 Percent of Investment of CSL 99.99% 51 CS LOXINFO


General Information Loxley Information Services Company Limited (LoxServe) of Subsidiaries Nature of Business Providing internet services 414 Phaholyothin Road, Samsennai, Head Office Phayathai, Bangkok 10400 971, 973 President Tower, 12th Floor, Branch Office Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 0105539021702 Registration No. Telephone 0 2263 8000 Fax 0 2263 8102 26,010,000 shares Registered Capital Par Value Baht 10 Paid-up Capital Baht 260,100,000 Percent of Investment of CSL 99.86% AD Venture Company Limited (ADV)

ADV derives all of its profits from the Nature of Business operational performance of SHINEE 414 Phaholyothin Road, Samsennai, Head Office Phayathai, Bangkok 10400 Branch Office Room 2101, 2104, 21st Floor, 1126/2 Vanit Bldg. 2, New Phetchaburi Road, Makkasan, Ratchathewi, Bangkok 10400 0105542060659 Registration No. Telephone 0 2207 6800 Fax 0 2207 6899 17,197,000 shares Registered Capital Par Value Baht 10 Paid-up Capital Baht 171,970,000 Percent of Investment of CSL 99.99%

52 CS LOXINFO


General Information of Subsidiaries

Shineedotcom Company Limited (SHINEE)

Nature of Business Provider of mobile contents, community portal services, and other internet related businesses Head Office 414 Phaholyothin Road, Samsennai, Phayathai, Bangkok 10400 Branch Office Room 2101, 2104, 21st Floor, 1126/2 Vanit Bldg. 2, New Phetchaburi Road, Makkasan, Ratchathewi, Bangkok 10400 Registration No. 0105542083071 Telephone 0 2207 6800 Fax 0 2207 6899 Website www.shinee.com Registered Capital 8,000,000 shares Par Value Baht 10 Paid-up Capital Baht 80,000,000 Percent of Investment of ADV 99.99% Hunsa Dot Com Company Limited (HUNSA) Nature of Business Provider of mobile contents, community

portal services, and other internet related businesses Head Office 414 Phaholyothin Road, Samsennai,

Phayathai, Bangkok 10400 Branch Office Room 2101, 2104, 21st Floor, 1126/2 Vanit Bldg. 2, New Phetchaburi Road, Makkasan, Ratchathewi, Bangkok 10400 Registration No. 0505542003082 Telephone 0 2207 6800 Fax 0 2207 6898 Website www.hunsa.com Registered Capital 800,000 shares Par Value Baht 10 Baht 8,000,000 Paid-up Capital Percent of Investment of SHINEE 99.99%

53 CS LOXINFO


General Information of Subsidiaries

Sodamag Corp Company Limited (SODAMAG)

Nature of Business Provider of mobile contents, community portal services, and other internet related businesses Head Office 414 Phaholyothin Road, Samsennai, Phayathai, Bangkok 10400 Branch Office Room 2101, 2104, 21st Floor, 1126/2 Vanit Bldg. 2, New Phetchaburi Road, Makkasan, Ratchathewi, Bangkok 10400 Registration No. 0105542078001 Telephone 0 2207 6800 Fax 0 2207 6898 Registered Capital 2,179,219 shares Baht 5 Par Value Paid-up Capital Baht 10,896,095 Percent of Investment of SHINEE 99.99% Watta Classifieds Company Limited (WATTA) Nature of Business Provides sub-advertisement and classified services in its own publications publishes and sells various publications such as newspapers, magazines, pocket books and others. Head Office 71/30 Borommaratchachonnani Road, Arun-amarin, Bangkoknoi, Bangkok 10700 Branch Office 71/36 Borommaratchachonnani Road, Arun-amarin, Bangkoknoi, Bangkok 10700 Registration No. 0105542015891 Website www.watta.co.th Telephone 0 2422 8000 Fax 0 2422 8032 Registered Capital 200,000 shares Par Value Baht 100 Paid-up Capital Baht 20,000,000 Percent of Investment of CSL 60.00%

54 CS LOXINFO


General Information Com Chat Company Limited (Com Chat) of Subsidiaries Nature of Business Conducting film and plate production Head Office 71/36 Borommaratchachonnani Road, Arun-amarin, Bangkoknoi, Bangkok 10700 Registration No. 0105544054354 Telephone 0 2422 8000 Fax 0 2422 8032 Registered Capital 10,000 shares Baht 100 Par Value Paid-up Capital Baht 1,000,000 Percent of Investment of WATTA 99.94% Note: Registration of its liquidaion with the MOC on November 30, 2007 and it is in the process of ceasing its existence.

Idea Maker Company Limited (Idea Maker)

Nature of Business Operating publishing business Head Office 71/30 Borommaratchachonnani Road, Arun-amarin, Bangkoknoi, Bangkok 10700 0105542000605 Registration No. Telephone 0 2422 8000 Fax 0 2422 8032 Registered Capital 23,000 shares Baht 100 Par Value Paid-up Capital Baht 2,300,000 Percent of Investment of WATTA 99.97% Note: Registration of its liquidaion with the MOC on November 30, 2007 and it is in the process of ceasing its existence.

Decode Company Limited (Decode)

Nature of Business Advertising and producing premium goods Head Office 71/36 Borommaratchachonnani Road, Arun-amarin, Bangkoknoi, Bangkok 10700 Registration No. 0105548077065 Telephone 0 2422 8000 Fax 0 2422 8032 Registered Capital 10,000 shares Par Value 100 Baht Paid-up Capital Baht 1,000,000 Percent of Investment of WATTA 99.93% Note: Registration of its liquidaion with the MOC on November 30, 2007 and it is in the process of ceasing its existence.

55 CS LOXINFO


Business Overview

CS LoxInfo Public Company Limited

CS LoxInfo Public Company Limited is Thailand’s leading top-quality internet service provider under the name “CS LOXINFO” . The effectiveness of the network management, together Services of the Company with the value added and after-sales service that can Major respond well to the customers’ requirements shows 1. Internet service via leased circuit (Leased Line) we are the leading top-quality internet service The service is designed for corporate customers provider for our target customers nationwide. who require the Internet for operating their businesses by using many computers at the same time, such as, Products and Services orders sending and receiving from overseas e-mail, With continued improvement, CS LOXINFO inter-branch data transmission both locally and becomes the internet service provider with the widest internationally, online customer service, etc. Last range of services, serving all groups of customer, year, 2007, we had strength in sustaining service employing various methods of technology. We can quality standards with a network capability that could service both the individual and the multi-simultaneous- provide continuous service. We had engineering and users, which is called corporate service, particularly after-sales services with the ISO 9001:2000 for those corporations requiring internet for their certification standard. We also had value added services which were flexible with the requirements of businesses operations.

56 CS LOXINFO


each customer, especially security solutions and network connection service. The target group grows continually, both in number of corporate customers and quantity of the bandwidth utilization for each customer.

users at the same time. The ISO standard was also implemented to control the quality to ensure a stable service with the highest level of security to customers.

line (ADSL) ADSL is an economy high speed internet service. We pay attention to providing the service to small and medium size corporations. We regard our strengths as firstly, our flexible service, and secondly our value added services that can fulfill the customers’ requirements. This can enable them to manage their internal internet services more conveniently, as well as the inter-branch data transmission.

customers who would like to use there internet service account overseas, or for a foreigner

who would like to use there internet service

account in Thailand. • Virtual Private Network (VPN): The service for

a corporate customer who wants to connect its

own internal network economically, but with

high efficiency, via the Internet network. • E-Mail Solution: The fully integrated e-mail

service for corporate customers who may

prefer to manage their own mail servers, or let CS LOXINFO do so. The service is also

equipped with value added services, especially virus elimination and spam mail filtering. • Managed Services: The special services for

corporate customers with teams of experts to

give consultation and manage the information

system of the customers via the Internet. The

service includes data security solutions e.g.

checking, protecting and eliminating viruses. • VoIP: The economy international phone

service via the Internet. Customers can dial

from a computer or ordinary telephone that

connects to the analog telephone adaptor.

6. Value Added Services

2. High speed internet services via telephone • International Roaming: The service for

3. High speed internet services via satellite

network (IPSTAR) This is a high speed internet service via IPSTAR satellite. Its strength lies in its nationwide coverage area; it is a wireless internet service via satellite. We are the first provider of this service in Thailand, so it is to our advantage. We have service experience both in quality of service and after-sales service. We also have alliances with installers and distributors across the country. Since the IPSTAR was launched in late 2005, the cost and service charges were decreasing, while the demand of high speed internet was increasing, such as usage demand in remote areas. As a result, we can expand more of our customer base.

4. Internet services via telephone line (Dial-up) The internet service via a telephone line focuses on individual home users who use the internet, but demand a lower price, the strength of CS LOXINFO on nationwide connection points, and convenient distribution channels, e.g. convenience stores, book shops, IT shops across the country, as well as the AIS mobile phone both in GSM and 1-2-call system.

5. Internet Data Center or the IDC

IDC is the top-quality internet data center service, connected directly to the Thailand Internet Exchange via high-speed fiber optics. The circuit is so large that it can support hundreds of thousands of

7. Uplink / Downlink Services The Company provides comprehensive Uplink/ Downlink services via the Thaicom Teleport and DTH Center at Lad Lum Kaew, which consist of TV signaling via satellite, live satellite broadcasting, and broadcasting of taped programs both in analog and digital systems. The services are provided both on a full-time basis with 24-hour operating staff, which is suitable for exact broadcasting schedule programs, and on an occasional basis, which is suitable for the broadcasting of live programs, news, or a seasonal sports competition. The service is provided in cooperation with Shin Satellite Public Co., Ltd.

57 CS LOXINFO


High Quality Internet

Market

Condition and Competition

Overall, there is intense competition in the Telecommunication Industry. It is not only from the new internet service providers being granted licenses from the National Telecommunications Committee, but also from the new telecommunication network providers. However, we can still continually maintain good performance by implementing policies focused on corporate customers, and expanding our customer base. This should allow us to maintain our leading status among the leased line internet service providers. Our key strengths are as follows:- • The customers, both individual and all levels

of corporation, trust in the quality service

under the name “CS LOXINFO”. • Having good development of value added

services to fulfill the needs of customers, e.g.

e-mail, security, and Voice over IP. • Having sufficient International Links for

serving customers. • Having skillful engineers with 24-hour

availability for after-sales service.

telephone lines to be sufficient and justified with the number of the users, together with the continuous improvement in efficiency of the nationwide networks. In order to build confidence among customers, ISO9001:2000, and management system with clear indicators and measurement, were implemented.

The Company is committed to provide top-quality

internet services, both in access to technical networks and after-sales services, in order to increase usage and the customer base, but with no policy of competing on price. The key marketing strategies are as follows:-

We have continuously developed new value added services, e.g., Virus Scan, Spam Mail Filtering, Voice over Internet Protocol (VoIP), Backup System via satellite, etc.

Marketing

Strategy

1. Build brand image as Thailand’s leading top-quality internet service provider We positioned CS LOXINFO as a premium internet service, offering a wide range of products and services to respond to various needs by communicating the strength of each service to the customers, as well as delivering the service at the level that the customers will be impressed or satisfied with, both before and after sales.

3. Maintain good relationships with customers

4. Leverage technology to increase competitive

5. Continuously create new products and services

6. Develop network alliances

7. Sales Promotion

We strive to create the highest customer satisfaction. Other than fulfilling coverage services, demanding proactive technical advice to corporate customers is also offered, e.g., holding knowledge sharing seminars in major provinces across the country, visiting customers regularly, and checking customers’ satisfaction by using survey techniques. advantage We have continuously invested in the development of the system and network, which not only support the country’s growing demand, but also improves the overall service efficiency.

Due to the fact that the network has significant impact to the services, we have developed good relationships with all network providers. Moreover, since the company has a large premium corporate customer base, using leased line services, we derive good business and technical cooperation from the alliances.

We carefully design sales promotion campaigns 2. Determine on service and quality improvement that fit with our target customers in order to retain We maintain the policy of managing the current customers and cooperate with alliances in international and domestic bandwidth, and number of stepping into new markets or launching new services

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that attract new customers. We also promote campaigns through the media and have marketing activities with our target customers continuously.

Sales

and Distribution Channels

inter-branch or international long distance

calls. It is suitable for businesses that have

nationwide branches, overseas headquarters,

including home users that have relatives abroad. • VPN (Virtual Private Network): Data

transmission via the Internet network service

between headquarters and its nationwide

branches. Some Corporate customers do not

require building up their own basic network.

They merely rely on the high quality network

provided by CSL, with peak levels of efficiency

and security.

Internet services of the Company are sold through the following channels:- 1. Direct Sales: This is our main distribution channel. We have sales teams giving advice and consultation to corporate customers. They are located both in Bangkok and all regions across the country. They focus selling of the leased circuit internet services and high speed internet services to small and Future Project medium size corporate customers. 2. Outlet stores: The stores sell internet Previously, the Company had continued increased packages for general customers across the country revenue from corporate customers. Therefore, we need through convenience stores, book shops, department to focus on investment in technological research to increase the service capability, from internet access to stores, supermarkets, IT centers, computer stores. 3. Mobile Phone: This is another channel where value added services that will enable customers to customers can purchase internet hours via mobile fully utilize the efficiency of the internet. phone network of Advanced Info Service PLC. (AIS) We have been granted the Internet Service Providing License from the National Telecommunications by dialing *48181, or *4818999, or *4818888. 4. Website www.csloxinfo.com: Customers can Commission (NTC) which included the Voice over IP apply for high speed internet service, purchase service-the telephone via internet service. With the complementary technological development that enable internet hours, apply for services, etc. 5. Call Center, number 0-2263-8222: It services customers to use telephone via internet more conveniently with clear voices, in 2008, we will 24 hours a day, with no holiday. cooperate with alliances both in Thailand and aboard Business Opportunity The Company foresees an opportunity to to aggressively market the Voice over IP service to continually expand the business into the corporate our current corporate customer base. sector. Therefore, in 2008, we will strive to fulfill the Since we manage the system and network, we requirements of our corporate customers by further have many engineers with expertise in the system and network, including security solutions, e-mail system, developing the following services:- • Managed Service: The service that can help and relevant value added services. At the same time, customers use the Internet conveniently and we conducted research and found that, although the safely, by completely overseeing and protecting e-mail and security system had a more important from viruses, Spam mail, or others relating to role, the small and medium size corporations were still lacking IT specialists to control the systems. e-mail system and security system. • VoIP or Voice over Internet Protocol: a telephone Therefore, in 2008, we plan to develop and provide service via the Internet network that can help quality e-mail and security systems at a low price for customers reduce telephone charges compared small and medium size corporations. with existing ordinary fixed line, either local

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Teleinfo Media Public Company Limited (TMC) 3,000 categories, covering more than 600,000 operators - the largest source in Thailand. It is easy to use with the businesses alphabetically categorized under the concept that these categories contain information that is useful for the customer for better lifestyle or business opportunities. Every chance, every need can be easily fulfilled at your fingertips. Thailand YellowPages is published in an easy design, keeping in mind for the benefits of the consumers residing in different parts of Thailand as follows:- Bangkok and surrounding boundaries All areas in one book, serving every need Zones Publication Divided into 5 books for 5 different zones i.e. North, Northeast, Central, East and South. English Publication Bangkok and surrounding areas in one book 2. City YellowPages, yellowpages for easier city living City YellowPages is the new publication that was carried out with the sole purpose of bringing out the best attribute of each province in Thailand. The selection has been based on the goods and services which best answer the varied lifestyle of each place. Teleinfo Media Public Company Limited (TMC) Moreover, YellowPages also contain useful information provides media service for business through Yellow in regards to the popular tourist places, important Pages telephone directory and other media services. places, shopping places and restaurants of those cities. Additionally it provides telephone subscribers profile, and There are also important contact numbers to make it call center service for general and entertainment easier for the customer to search for and get in touch with those places comfortably. Therefore, City information. Thailand YellowPages has the largest information YellowPages is a new media that brings convenience in Thailand where consumers can search for required to the city lives. Last year saw the publication carried information through three ways as per his/her convenience: information in three provinces i.e. Nonthaburi, Flip Thailand YellowPages, Call 1188 Thailand Pathumthani and Samut Prakan. Studies for other YellowPages, or Click the site www.yellowpages.co.th provinces are being carried out for the planned extension to other high potential places in 2008. Products and Services 3. Thailand Corporate Pages 1. Thailand YellowPages - Integrated Business Thailand Corporate Pages is the single whitepaged telephone directory that lists the names and Medias Thailand YellowPages compiles telephone telephone numbers of all the businesses in Bangkok numbers of the product and service operators of over and its surrounding areas. More than 600,000 60 CS LOXINFO


business operators are listed alphabetically with the names of governmental units and state enterprises separated for easier search. 4. Thailand Export-Import YellowPages Thailand Export-Import YellowPages, a handbook for the exporters and importers in the forms of a book and CD-Rom ready to assist in the business of exports and imports. The book lists all the names of importers and exporters in Thailand with analysis on the perspective and outlook of each industry to the latest situational report of the export market both locally and overseas. It is published in English with the contents divided into two sections:- 1. List of the names of the exporters and

importers in Thailand, divided into 13 main

industrial categories such as the products and

services related to agriculture, ornaments,

automobile parts, and electrical appliances, etc. 2. Names of the businesses that support international trades such as airlines, commercial banks,

insurance companies and cargo companies, etc. Thailand Export-Import YellowPages is published for the export and import businesses both locally and internationally and is available for sale in the leading book stores. 5. Visitors’ Guide to Thailand – special publication with the English Thailand YellowPages Visitors’ Guide to Thailand, This guidebook with the information through eyes of a foreigner to Thailand has been endorsed directly by the Tourism Authority of Thailand (TAT). It contains information that will assure you a complete whole experience of trip to Thailand with excellent recommendations for places, goods and services around the country. It has a supplement section for articles, documentaries, and other information in regards to tourism in Thailand. Telephone numbers and information of the goods and services are also provided. Visitor’s Guide to Thailand is published bilingually, in English and Japanese in one single volume and is distributed along with the English Thailand YellowPages all over the country with the main target at the rooms of leading hotels, tourism promotion centers, airports, airport lobbies, and tourist servicing businesses and authorities in Bangkok. It is also available in the leading bookstores around the country. The latest information can also be accessed online at www.visitorguidetothailand.com

6. 1188 Thailand YellowPages 1188 Thailand YellowPages is a service center with well trained staff ready to assist you in searching for information on products and services with the telephone numbers of the businesses, shops, restaurants, tourist places together with information on the travel routes, governmental agencies, emergency numbers and personal numbers all over Thailand with more than 6 million numbers listed in the directory. It also provides latest daily headline and up-to-date information such as news, horoscope, live scores, gold prices, oil prices, schedules of product fairs, One Tambon One Product (OTOP) fairs, summary of the latest movies, movie and music charts, lottery results, etc. Other additional services provided by 1188 Thailand YellowPages are:- • Services in English for foreigners and in local

dialects for Thais from different parts of the

country. • Transfer calls from AIS transponders to the

desired numbers. • SMS on your behalf in English and Thai

message typing and sending. • Fax on demand services. • Download ring tones, logos, images and games. These are all to provide the best services to every need of customers and to ensure they are comfortable in using the services. 7. Website www.yellowpages.co.th – easy access to “Online YellowPages” from anywhere in the world Website www.yellowpages.co.th is the complete directory with the names of the businesses from the Thailand YellowPages and Thailand Corporate Pages. You can search and access the information in both Thai and English. Alternatively, if you choose the option “Book View”, the page will show the exact location of the information in the Thailand YellowPages which helps in getting the name and picture of the advertisers clearly, as if you were opening the book for real. It has been found that more than 90% of the users who click on the www.yellowpages.co.th are satisfied with the information that they received. Help you to get what you need, anytime, anywhere, be it in Thailand or other parts of the world, 24 hours for 365 days. 8. Get & 2Load (www.2Get2Load.com) Get & 2Load, In the present world, the media channels have been expanding tremendously and in order

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High Quality Internet to serve the customer needs, the Audiotex service of “2Get” 1900 222 xxx has been launched. It is one of the services launched to make you more comfortable. No matter what phone you use be it landline or cell phone, just press the numbers as per the menu and you will get the information or entertainment 24 hours daily. This trendy service provides with you daily horoscopes, jokes, latest Box Office or music charts, competitions, download songs, latest scores and results of various sports or even conversation with new friends, etc. All in all to serve you everything of what you need, and for the people who want to improve their lifestyle. Providing entertainment information to you, “2Load” is ready to send information you need through SMS unlimited, be it daily horoscopes, jokes, summary of the TV series and recommendation for the latest movies every week. 9. Precision Marketing Precision Marketing, To keep up with the ever changing trend of present world competition, precision marketing helps you to reach your target audience even more directly while helping you managing your marketing budget effectively. It is flexible and the result can be determined accurately. TMC provides the services in the following 4 ways:- • MAILING LISTS: Providing the latest

database of the names covering a wide rage

of different target groups, it helps you save

time and increase profit for the business. • TELEMARKETING SERVICES: Create

business opportunities via telemarketing. The

well trained staff with professional skills will

contact the clients and follow up with them

on the behalf of your company. • DATABASE MANAGEMENT & MAINTENANCE: Service of managing and

maintaining the latest database to cope with

every change in the market, helping you in

avoiding losses and opportunity loss. • LETTER SHOPPING SERVICE: Integrated

services of mailing the documents to the

clients from database preparation; printing out

and tag the names; arranging the mailing

services and summarizing by well experienced

staff, helping you save time.

10. Outsource Call Center

Outsource Call Center, Using Call Center has been increasingly considered as one of the most productive marketing tools in the present marketing world. Therefore to increase your marketing potential to a higher level without huge investment, TMC provide Outsource Call Center which helps in opening more sales channels and provides better services to the clients. It covers both the inbound calls i.e. intercept clients’ calls for information of the clients, take orders, and register, and outbound calls i.e. calling the clients and informing them of their privileges, offering sale, and inviting the target group to join the campaign, etc. 11. New Services for meaningful entertainment Interactive Voice Record (IVR), TMC has developed Interactive Voice Record (IVR) system jointly with Advance Info Service PLC. to provide the narration in various museums, also known as Museum Audio Guide, in Thai, English, Japanese, or Chinese, viewed as suitable, to promote the tourist places and equipped them with services of an international quality. Started with Thai Human Imagery Museum, the service has been recently expanded to other museums such as Panorama Museum of Bangkok, Thai Press Museum, King Prajadhipok Museum, and The Erawan Museum. The current trend in advertising industry The market of advertising industry from January to October 2007 has increased by 1.52%. The media sector’s advertising has decreased by 10.80%. By category, the advertising of alcoholic products decreased by 41.90%; skin care products registered highest growth at 15.3%, followed by real estate sector which registered growth at 7.10%. It is forecasted that in 2007, the total advertising volume is Baht 75,430 million with the television having the highest share at 58.15%, the growth decreasing by 0.36%. The advertising in cinema halls will have the highest growth at 145.96% and advertising growth in the malls stand at 99.58%. The growth of mobile media, radio and the billboard will decrease at 3.22%, 4.41% and 3.84% respectively. As for the publications such as magazines, the growth will

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decrease at around 5.07% while the advertising in Business opportunities for the year 2008 newspapers will increase by 0.39%. Moreover it is also estimated that the online advertising would be As the leader in the integrated business media expanding more than 40% from that of 2006* which industry, with useful database, and the determination is based on the fact that the internet users has of continuous improvement, TMC believes in potential and is ever ready to increase the exposure of increased by 15% from the last year. the goods and services, with the product and service developments to be the new source of income in the *data provided ADMAX and Thailand Direct Marketing future, especially to improve the online system to be Association (TDMA) increasingly ever ready to fulfill the needs of the Marketing activities and situation of the customers in the daily life through computers and competition mobile phones, including the development of In a highly competitive market, the advertising handbooks which gather more information in various media with high return on investment is the most industries with high potential, by following the below favored one and can prolong a continuous growth. strategies:- YellowPages is an business media that assists in 1) Benefiting from the strong brand identity of

efficient business transactions. Not only is it the the distinguished image of YellowPages to

closest to the user’s hand when the purchasing need expand its services to the new consumer

exists, but it is also a sole business media that covers group such as various important cities in

a maximum range of product and service categories. Thailand. For example Nonthaburi, Samut

It also provides clear buying and selling information Prakan, and Pathum Thani YellowPages have

as well. Moreover it is distributed for free to the been launched and the expansion to other

users at the home, and business and industrial areas with high potential. 2) Integrating TMC infrastructure and system and

premises. combining them with the strong alliances in

Besides, the readiness for the investment in the infrastructure system and solid development in TMC order to develop the formats of information

allows the integration of data to achieve the highest and content. The presentation must also be

benefit to the users so that they can access the data reached via more channels, especially by

conveniently and immediately whenever they want. internet and cell phones for more convenience

There are three other choices available i.e. service of the users and to allow more benefits to the center at 1188 Thailand YellowPages, the website advertisers. www.yellowpages.co.th, or by mobile phones. 3) Expand the user base by developing products

Although the advertising has a little growth but if that serve the customer needs and are suitable

quality be taken into account, Thailand YellowPages for the purchasing power of each group. is the advertising media that reaches the target group 4) Increase income through the call center at

of customers who are willing to buy the most. Taken 1188 and Audiotex service in the form of

the aforementioned integration into account, this one-stop service to build convenience and

explains why the company’s products and services familiarity. have been highly sought after, especially the Thailand TMC will keep looking for opportunities to YellowPages with its integrated business information, make use of its expertise and the database which is easily accessible at anytime and anywhere which is the core asset that built its business from the past worth the investment of advertisers. This can be along with the ever improving technology and change proven by how Thailand YellowPages has achieved of taste for the new media services that are growing. and maintained its market share at 80-90% against This is to achieve the potentiality and the highest satisfaction of both the users and the advertisers. its competitors for the past 20 years. 63 CS LOXINFO


AD Venture Company Limited

AD Venture Company Limited (ADV) is the company that CSL holds 99.99% of its stake. It has registered and paid-up capital of Baht 171.97 million. Its major business is as a holding company, having sole investment in Shineedotcom Company Limited (SHINEE). Therefore, the business performance of ADV will mainly come from the business performance of SHINEE, wherein ADV holds 99.99%.

SHINEE has registered and paid-up capital of Baht 80 million. It has 2 subsidiaries, which are Hunsa Dot Com Co., Ltd. (HUNSA) and Sodamag Corp Co., Ltd. (SODAMAG) These major businesses are providing information and entertainment content through mobile phones, and developing applications to be used on Internet. Currently, SODAMAG does not run any business and is in the process of closing down.

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Shineedotcom Company Limited

This company is a content aggregator from various types of content owners, both providing news and entertainment information, offered to the market through mobile phones under the name “Shinee.com”. This is called a Mobile Content Provider. It also provides content through a portal website, under the name “Hunsa.com”.

Products

and Services

SHINEE is a content provider split into two kinds of business. 1. Mobile Content Business Shineedotcom Co., Ltd. provides mobile content service under two brand names, SHINEE and SODAMAG, via all mobile phone networks; AIS, DTAC, and True Move. Audiotex systems can also obtain content, which includes all fixed line ordinary telephone system can also access SHINEE’s service.

The target age group is 15 - 50 years old. Customers can access these services by one of two choices. 1.1 Download services to store in a mobile

phone via mobile phone networks, by dialing

the service code through an IVR system. For example, press *489958355812216 for AIS, or press

*1919958355812216 for DTAC, or download via SMS by dialing 58355812216 and send to 7899 for Truemove, or go to wapsite http://wap.shinee.com to immediately download the content via wap with no network camp limitation. Customers can also download content via a linked menu in the wap portal of the mobile phone network. After downloading, they can pay for service charges through the mobile phone network that they are using. The names of these service types are as follows:- • Shinee Ringtone: provides four types of

ringtone; Monophonic Ringtone, Polyphonic

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High Quality Internet Ringtone, Truetone Ringtone and Full Song

Ringtone. We aggregated these tones from

Thai and international music allies, in response

to customers’ needs. • Shinee Java game: provides games on

mobile phones that can be played by pressing

buttons to control directions. We have

brought together a range of games from all

over the world, so there are various categories

to serve customers’ demands e.g. action,

adventure, sport, etc. • Shinee Wallpaper & VDO Clips: provides

wallpapers with types of drawings, cartoons

and photo pictures that customers can

download and save as a screensaver for their

mobile phone. While VDO Clips service

allows VDO downloads of approx. 1-minute

duration for viewing and saving on mobile

phones. Selections include cartoons, humour

and movie or series previews. • Shinee News: provides an updated news

service from many news allies e.g. TNA

(MCOT) and Channel 7. The service is

provided through SMS or wap accessing.

Customers can subscribe through IVR, SMS

or wap, and pay monthly service charges

through their network operators. After that,

the system will send updated news, 5-8

reports per day, to customers via SMS, or

they can read it from wap. The customers can

cancel the service at anytime through IVR,

SMS or wap. • Shinee Info Entertain: provides star gossip,

updated new movie reports and music from

famous sources, from the company’s allies

e.g. MAYA CHANEL newspaper. The

service is provided through SMS or wap that

customers can subscribe to through IVR,

SMS or wap, and pay a monthly service

charge through their network operators. After

that, the system will send them updated news,

5-8 reports per day, via SMS, or they can

read it from wap. Customers can cancel the

service at anytime through IVR, SMS or wap. • Shinee Horoscope: is a horoscope service by

the famous fortuneteller “Kengkart Jongjaipra”.

He is a partner of the Company. The service

is provided through SMS or wap that allows

customers to download occasionally, or

subscribe through IVR, SMS or wap, and pay

charges per download or monthly through

their network operators. After that, the system will send customers their horoscopes, by their

given star signs, via SMS, 5-8 times per day,

or they can read it from wap. The customers

can cancel the service anytime through IVR,

SMS or wap. 1.2 Listen to services via Audiotex Customers can access this service by dialing the telephone number shown on the ad, such as 1900-222-394 for a zodiac horoscope service, and then follow the menu, listening to the service details. 2. Website Business Shineedotcom Co., Ltd. provides a portal web service under the name www.hunsa.com, which targets 10 - 30 year old people. The provided services are as follows:- • News and entertainment: provides updated

news and entertainment that were aggregated

from many sources e.g. websites, newspapers

and Hunsa’s news team. This is a free of

charge service. • Web board: or Chat room, for posting

opinions on miscellaneous topics. This is a

free of charge service. • Hubbie: provides a service to create ones’

own cartoon character, an Avatar, to use

among chatting lovers. They use cartoon

characters to represent themselves. Customers

can create the cartoon character for free, but

they can buy additional clothes by purchasing

and paying by cash card. • Online horoscope: provides a horoscope

service, through the Hunsa website, by

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popular fortuneteller team. This service uses

the Hone Fun Thong teamwork. Customers

can use this service by sending their birthday

and questions to the Hunsa website. Once the

payment via cash card is made, the staff will

send the information to the customers by

Hunsa’s website. • Advertisement: provides a banner ad on

effective Hunsa websites with over 100,000

visitors per day. The ad pricing is varied,

with respect to the banners position.

Customers of this service are companies and

shops who would like to promote their

products or services to Hunsa’s visitors by

using Hunsa’s banners. • Web Development: by the experts and

experienced teams. Customers of this service are

companies and shops that would like to own

websites to promote their products or services.

Industry

situation and competition

Due to the mobile content business’ growth trend in 2004, about 200 local and international content providers entered into the market. There was intense competition in both pricing and marketing. After that, there was cost restructuring by the operators and content owners. Many providers gave up and left the market, because they could not manage their costs. However, with the effective management and marketing strategy of SHINEE, it could strongly retain its customer base by the following methods:- • Maintaining a high service standard and not

deceiving customers, unlike others who

aggressively did so during 2005-2006, which

resulted in the increase in confidence of our

customers in choosing the services of our

company. • Manage marketing costs by focusing on using

effective media and directly targetting groups. • Focusing on services that could fulfill the

customer’s life style and enhancing satisfaction

by offering monthly and buffet subscription

styles to match customers’ monthly budgets. • Having a strong partner within Shin

Corporation Group, expanding distribution

channels and running marketing activities,

e.g., communication via website, Mobile Life,

One 2 Call card, etc.

Marketing

Strategy

SHINEE strives to provide services with speed and accuracy at a fair price, with after sales service for an increasing customer base. SHINEE does not have policies to deceive in their marketing or take advantage of our customers. The marketing strategies of SHINEE are:-

1. Focus on quality and service SHINEE has a policy about the freshness of content provided to the customer; the content has to be up to date, in trend, and have good variety. Thereby SHINEE has a policy to aggregate content from every source, to fulfill the complete needs of customers as a one-stop service at SHINEE. Additionally, SHINEE pays attention to reviewing the quality of all downloaded services, thereby acting quickly and correctly, delivering good service to our customers. 2. After Sales Service The primary critical factor of the mobile content providing business is the Customer Service that can act quickly and also provide customers a dedicated service for information and solutions. For this reason, SHINEE focuses on its customer service by having a call center unit to effectively serve and respond to queries. 3. Continual development of new services SHINEE has developed various kinds of service to fulfill the needs and tastes of our target customers by mainly focusing on their behaviors. A Buffet service at an economical price will be offered to customers who love economy downloading. Pay per download with no committed conditions will be

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offered to trendy customers. Moreover, new or in trend content will be offered in time e.g. background music, SMS voting service in major events such as Miss Thailand Universe Contest, etc.

3. AIS call center No. 1175 and SHINEE call center 4. Mobile phones by using service code from advertisements 5. Advertising space on www.hunsa.com

4. Focus marketing SHINEE focuses marketing on download lovers, Business Opportunity With the fast, continual, and high growth of mobile by using a database, which analyzes and classifies phone business, telecommunication liberalization, fast customer’s behavior, thereby correct marketing and sales promotions could reach intended target groups, moving technological changes, and fast reduction of mobile phone prices, resulted in the growing directly and efficiently. numbers of mobile phone subscribers. SHINEE also Distribution Channels 1. Wap Service of mobile phone users e.g. foresees the long positive future of the mobile content business. Therefore, more new services will Mobile life and SHINEE Wapsite be developed in 2008. 2. www.shinee.com and www.hunsa.com For the website business, the competition of Internet service providers resulted in lower service charges, but offering a higher quality, as well as the continual growth of internet usage. Therefore, in 2008, new services in the segment of E Entertainment commerce will be developed because of the growing opportunities in E-commerce businesses that are foreseen.

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Watta Classified Company Limited

Watta Classified Company Limited (“WATTA”) provides sub-advertisement and classified services in its own publications for customers locally and internationally. WATTA also publishes and sells various publications from daily and weekly newspapers to weekly, monthly, bi-monthly and yearly magazines to pocket books and others. Products and services Products and services of WATTA can be grouped into 2 main types of business as follows:- 1. Sub-advertisement and classified services in publication media WATTA provides various advertising placement services via its sales team both direct sales and telesales, to customers locally and internationally. Customers either a juristic person or an individual person (household) can place the classified ads for PR and advertising their products or services, for consumption or for job classified and etc. For advertising placement services in various print media of WATTA, such print media include newspapers, magazines-weekly, monthly, bi-monthly and yearly, pocket books and others. 2. Publishing and selling books In order to facilitate sub-advertisement or classified services in publishing media for WATTA’s customer group and readers that want to search for

information about products or services that respond to their needs, the Company has published and sold various publications to satisfy such customers demands. WATTA produces quality print media under various names, which can be categorized as follows:- 2.1 Newspapers include • World Today (Lok-Wan-Nee) is a daily

newspaper that has contents about politics,

economics, social, entertainment, health,

various useful tips and classified so that the

readers can search for information on products

and services that match their needs. World

Today is ideal for the white collar group

whose daily activities are varied. It is available everyday in the market. • Fineday (Wan-Suk) is a weekly newspaper

that has the same contents as the daily World

Today. As a Friday issue, it adds a special

section on weekend activities. Fineday is

ideal for the white collar group whose daily

activities and lifestyles are varied. It is

available every Friday in the market. 2.2 Weekly Magazines include • Car Magazines Car Today (Rot-Wan-Nee)

presents information on buying-selling used and new cars and updated news in the

automobile industry, including various

useful tips about cars.

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High Quality Internet • Job Magazines Job Today (Ngaan-Wan-Nee), Find Job

Find Easy (Ha-Ngaan-Ha-Ngai), Smart

Job and Job Seven collect information on

job vacancies and job hunting, including

articles and updated news that help develop

capabilities of job applicants. • Real Estate Magazines Home Today (Ar-Karn-Tee-Din) presents

information on buying-selling homes,

building and land, including useful tips and

new developments in real estate business. • Education Magazines Education Today (Karn-Suk-Sa-Wan-Nee)

provides information on education or

learning institutions, both government and

private enterprises from both local and

aboard, for educations, training, personal

development and scholarships both local

and international. 2.3 Monthly Magazines include • Real Estate Magazines Open House gathers information on new

home and condominium projects, useful

tips for home and garden decoration and

answers to a range of questions on home

maintenance and repair. 2.4 Bi-Monthly Magazines include • Car Magazines Red Plate (Pai-Dang) presents information

on new car models, interview articles on

experienced users and useful tips on car

and car decoration. 2.5 Yearly Magazines include • Gift and Premium Magazines Gift Ideas contains information on sources of

production or places to order, retail-wholesale

stores or sell and import agents of gift,

premium and collectible stuffs as well as

interview articles on well-known people or

various useful tips. 2.6 Pocket Books include • Educational Group e.g. Thoon-Rian-Free-

Mee-Thua-Lok, EXITBOOK and etc.

• Information and Knowledge Group e.g. The

Wonders of the World Architecture, Luuk-

Chang-Thaam and etc. • Children Group e.g. Nain-Payoom-Joom-

Yung, Ha-Thamma-Phra-Payoom and etc. • Political Group e.g. Maeo-Mai-Mo, Paak-

Sa-Mak, Debate-Garn-Meuang-Reuang-

Seen-La-Tham? and etc. 2.7 Other Books include • Magazines that are published upon market

demand. Procurement of Products or Services WATTA has a high reputation for flexibility in managing its production and distribution as a classified advertising service provider in publishing media as well as a media publisher and distributor. WATTA controls the quality of works from the production of advertisement designed by high experience teamwork and approved by customer to ensure that it is accurate and meets customer’s purpose before sending off to the printing house. WATTA needs to make sure that such printing house has a standard production process that it commits to and is able to complete the work within specified time period. WATTA has also arranged teamwork to distribute products to its nationwide sell agents to display on the bookstand every day at dawn, including home delivery to its members. Industry and Competition The overall growth of the advertising media industry has been on a decreasing trend. Although publishing media was still increasing given high spending from real estate business during the end of 2007 i.e. about 10 city condominiums launched their projects at the same period. Trends for 2008, it are expected with the industry growing significantly, mainly from political factors. Printing business is expected to grow by 12% compared to 10% growth last year. Even though several businesses had experienced problems as a result of poor economics amid domestic political unrest which in turn weakened consumer confidence and buying power, such problems had no impact on printing industry’s growth. This was mainly due to the fact that during

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the past year was the period to celebrate His Majesty the King 60 years on the throne yielding positive impact on the industry growth. During the auspicious 2007 to celebrate His Majesty the King of Thailand 80th birthday, the government had announced this event as the national agenda, which was expected to use significant amount of budget from both government and private agencies especially in producing additional print media. Marketing Strategy WATTA has placed a great emphasis on providing sub-advertisement and classified services. Advertisements that are placed must come from a reliable source and safe for the society. Information or news that is published in all of WATTA’s publishing media must be fresh, accurate, trustworthy and up to date. WATTA focuses on providing advice for pre and post sale for the highest satisfaction of its customers from various media groups such as education, real estate, automobile and newspapers. At the same time, in order to broaden buying-selling opportunities, WATTA has been continuously developing the design to add new and more variety of services that can always match customers’ needs. Sales and Distribution Channels Sub-Advertisement or Classified Services: WATTA provides sub-advertisement or classified services in the publishing media of WATTA for both local and foreign customers. WATTA services their customers through the following channels:- 1. Direct Sales: This is the main distribution

channel. WATTA has sales teams that can

service and give advice to customers to ensure

that the advertisements are correctly responding

to their needs and placed in the right media

of WATTA that matches the target reader

group of such customers. 2. Phones or Mobile Phones: Customer can

place a classified ad via 1900 Service or

sending message by SMS or MMS. In

addition, there is a service to download

advertising information for customers. Produce and Sale of Publishing Media: WATTA sells the publishing media of WATTA to nationwide customers through the following channels:-

1. Nationwide Sale Distributors which can be

categorized into 3 types as follows:- 1.1 Modern Trades e.g. SE-ED Book

Centers, B2S, Prae Pittaya and etc. 1.2 Convenience stores e.g. Seven Eleven,

Book Smile and etc. 1.3 General bookstands 2. Marketing Activities e.g. organize job and

education fairs, open booths and participate

in various events e.g. Book Fair, Architect

Fair, Motor Expo and etc. 3. Memberships i.e. apply for a membership of

daily and weekly newspapers, weekly and

monthly magazines. Business Opportunities Given consumer behavior who want to receive various kinds of new information coupled with technology that plays an important role i.e. almost turning the society into a digital era, WATTA has realized the importance of information that will bring in an opportunity to respond to such needs. A large number of information sources are systematically kept and ready to send out to consumers through digital media. The speed of technology will be the key advantage in accessing and exploiting more opportunity than others. As such, WATTA is the media that constantly update, matches every need, accesses every gender and age, covers daily life for the entire 24 hours. WATTA is preparing to become a content provider that provides information and news, especially such contents that WATTA is very good at, and present to the right media. Moreover, WATTA has taken the benefit of leading brands’ popularity to make the decision easy for the business owners of products and services in placing the advertisements. Hopefully, this will also make it convenient for consumers to make the decision in buying products. In the mean time, WATTA is ready to enter into other types of media, particularly online media in order to accommodate growing numbers of internet users by joining forces with strategic partners within and outside the group.

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Major Developments CS LoxInfo Public Company Limited (the Company or CSL), formerly known as CS Communications Company Limited, was established on 20 July 1994 with its initial registered capital of Baht 10 million as a joint venture of CAT Telecommunication Public Company Limited (CAT) and Shin Satellite Public Company Limited (SSA), with a holding percentage of 49% and 51%, respectively. The Company was granted a concession to provide television signal and internet access via satellite for a period of 22 years from

9 August 1994 to 8 August 2016. Further, in 1997, the Company was granted a concession from CAT to provide commercial internet service access services via landline and satellites for a period of 10 years ending 2007 under the name of “CS LoxInfo”. However, at present, licenses to provide internet service will be under authority of the National Telecommunications Commission (NTC). Moreover, the Company invested in subsidiary companies which provide other services, such as content, games, printing and publishing

YellowPages in both online and off line, Audiotex

via phone number 1900 and 1188, mobile content service, web portal service-hunsa.com and print classified directories business. In 2003, the Company changed its status from a limited company to a public limited company and listed on the Stock Exchange of Thailand on April 2004. The Company’s registered share capital as at 31 December 2007 comprised 661 ordinary shares of Baht 1 each and 627 million ordinary shares were fully paid-up. As

at 24 August 2007, the Company’s major shareholders are Shin Broadband Internet (Thailand) Company Limited (SBI), Singapore Telecommunication Limited (SingTel) and Phatra Securities Public Company Limited with a shareholding of 40% 13% and 8%, respectively. The Company, together with Loxley Information Service Company Limited were granted a 1-year period license from National Telecommunications Commission (NTC) to operate internet access services from 8 September 2007 to 7 September 2008 and 29 June 2007 to 28 June 2008. Moreover, The Company also received Type II IIG license and Type III license from NTC to provide internet access services for 5 years and 15 years from 26 April 2007 to 25 April 2012 and from 20 December 2007 to 19 December 2022, respectively. Under NTC’s conditions, if the authorized licensee is not significantly in violation of the conditions as specified in the license, NTC will renew the license immediately.

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The Company’s Progress and Development

March 2003 The Company acquired 24.5 million shares of Loxley Information Services Company Limited (“LoxServe”) at Baht 10 each (representing a 94.19% shareholding) from Point Asia Dot Com (Thailand) Company Limited (“PA”) by issuing 24.5 million additional ordinary shares at Baht 10 each to PA and a group of shareholders of PA. March 2004 The Company acquired TMC from SHIN and SingTel at the total price of Baht 507 million, which represents a shareholding of 63.25% of TMC’s share capital. TMC has been granted rights in publishing and advertising of telephone directories from TOT Corporation Public Company Limited (TOT). In addition, TOT had the right to sell its shares of TMC to the Company at a price not lower than the selling price of SHIN and SingTel within 1 year as from 12 February 2004. April 2004 The Company registered additional issued and paid-up share capital with the Ministry of Commerce from 500 million shares at a par value of Baht 1 each to 625 million shares at par value of Baht 1 each. The additional ordinary shares were issued and offered to the public and entered into registration in the Securities and Exchange of Thailand on 8 April 2004 with an IPO price of Baht 9 each. September 2004 TMC entered into an Audiotex agreement with TOT for a period of 15 years to provide information, news and entertainment programs via telephone and fax number 1900 and 1188, 24 hours per day, using operators. TMC started provide 1900 service and 1188 service on November 2004 and December 2004, respectively. June 2005 The Company further acquired ordinary shares and preferred shares of Teleinfo Media Public Company Limited (TMC) (previously named Teleinfo Media Company Limited) for the total of 26 million shares at Baht 25 per share (equivalent to 36.75% shareholding) from TOT Public Company Limited (previously named TOT Corporation Public Company Limited) with the payment conditions: • The first payment of Baht 20 per share paid by June 29, 2005. • The second payment of Baht 5 per share paid within 30 days after auditor

(approved by SEC), certified the financial statement of TMC for the accounting

year period ended 2007 and the aggregated revenues of TMC for the accounting

year period 2006 and 2007 is equal to or higher than Baht 2,000 million.

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August 2005 TMC’s extraordinary general shareholder meeting No. 2/2005 approved:- • The conversion of TMC’s status from a limited company into a public company

limited and change the name to Teleinfo Media Public Company Limited. • TMC decreased its capital by a total of Baht 521 million from the registered

capital of Baht 694 million to Baht 174 million by way of reducing the number of

ordinary shares and preferred shares at par value per share of Baht 10 from 40

million shares and 12 million shares, respectively in order to eliminate its

remaining retained loss and repay the residual of the decreased portion to

shareholders whose capital was reduced. April 2006 The Company acquired 28 million ordinary shares of AD Venture Company Limited (ADV), a holding company which held 70% stakes in Shinee Dot Com (“Shinee”) from SHIN, equivalent to 51% of share capital of ADV at the total price of Baht 18 million. July 2006 The Company acquired 5 million ordinary shares of ADV, equivalent to 9.09% of share capital of ADV at the total price of Baht 3.2 million from Mitsubishi Corporation and Mitsubishi Company (Thailand) Limited. After this acquisition, the Company held 60.09% of the share capital of ADV. August 2006 The Board of Directors’ meeting of the Company No. 6/2006 passed a resolution to approve the interim dividend of Baht 0.60 per share totaling Baht 375 million or 333% dividend payout as compared to 2006 half-year operating results. This high dividend payment consisted of half-year normal performance dividend Baht 0.18 per share plus one time special dividend which resulted from the adoption of Thai Accounting Standard No. 56: “Accounting for Income Taxes”. September 2006 The Company acquired additional 22 million ordinary shares of ADV, equivalent to 39.91% of share capital of ADV at the total price of Baht 14.05 million from SHIN. After this acquisition, the Company held 99.99% of the share capital of ADV. February 2007 The Company acquired additional 0.5 million ordinary shares in LoxServe from CAT and its employees at Baht 12.90 per share, representing a total price of Baht 6.2 million. After this acquisition, the Company held 96.05% of the share capital of LoxServe.

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April 2007 • The 2007 general shareholders’ meeting of the Company passed a resolution to

approve the transfer of the legal reserve fund of Baht 46 million and the reserve

fund in excess of the par value of Baht 574 million to offset the Company’s

accumulated losses from changing the accounting method in recording investments • The Company acquired 0.1 million common shares of Watta Classified Company

Limited (“WATTA”), a Print Classifies Directories Business, equivalent to 60% of

share capital of WATTA at the total price of Baht 88 million. May 2007 The Company acquired additional 1 million ordinary shares in LoxServe from Point Asia Dot Com (Thailand) Company Limited at Baht 2.02 per share, representing a total price of Baht 2 million. After this acquisition, the Company held 99.86% of the share capital of LoxServe. August 2007 • The Board of Directors’ meeting of the Company No. 7/2007 passed a resolution

to approve the shares repurchase program for financial management purpose

(Treasury Stock Program) with a maximum number of shares repurchased up to

51.7 million shares or equal to not more than 8.3% of total paid-up capital of the

Company at the maximum amount not exceeding Baht 225 million in order to

manage the Company’s excess liquidity and increase the return on equity (ROE).

The repurchase period was started on 27 August 2007. However, As of November

22, 2007 the Company could achieve the number of share repurchased of the

Project under The Board of Directors’ resolution. • ADV and SHINEE registered reduced issued and paid-up share capital with the

Ministry of Commerce from 55 million shares and 19 million shares (par value of

Baht 10 each), respectively to 17 million shares and 8 million shares (par value of

Baht 10 each), respectively. January 2008 ADV which is the subsidiary of the Company acquired additional 2.4 million common shares of SHINEE, equivalent to 30% of share capital of SHINEE at the total price of Baht 15.1 million from Mitsui & Co.,Ltd (Mitsui). After this acquisition, ADV held 99.99% of the share capital of SHINEE.

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Risk Factors

Industry

Risk • Risk arising out of the liberalization of the

telecommunication industry Risk arising out of the liberalization of the telecommunication industry may have an impact on the internet service business, which accounts for about 60% of the Company‘s total revenues. The National Telecommunication Commission (NTC) started to issue licenses to operate the telecommunication business for operators with their own network (Type II & Type III) in 2006 resulting in an increase in the number of internet users and in turn competition, which will have an impact on the Company’s operation going forward in terms of both revenues and market share. Therefore, in order to mitigate such risk arising out of industry liberalization, the Company has adapted its strategy to focus on providing better quality and services for various types

of customers, particularly for corporate clients whom the Company has confidence in their potential for high consumption and constant growth rate. In addition, the Company has also applied for a license to operate the telecommunication business in various types to rely on other business operators as little as possible, which is deemed as a way to control the quality of services. • Risk arising out of the advertising industry’s growth Risk arising out of the advertising industry’s growth may have an impact on TMC and WATTA, which contributes about 35% of the Group’s total revenues. As the main source of revenue of the publishing business derives from selling advertising,

76 CS LOXINFO


during economic slowdown, which undermines condition. Consequently, the Company has adapted its consumer confidence for spending and investment, the strategy to focus on particularly marketing, especially result will be a decline in the growth of the for corporate clients. The Company’s stance on this advertising industry. Fully aware of such effect, TMC regard is to provide quality of services and not and WATTA have thus developed new publishing compete on price to avoid any impact from such a products to expand their customer base, support condition on the Company’s performance. business growth and minimize the impact from the Change Risk advertising industry risk which may be stagnant from Technological time • Risk arising out of the internet technology change to time. • Risk arising out of the change in customer At present, internet technology has been changing constantly and rapidly. In particular this has occurred behavior on add-on services for mobile phones Risk arising out of the change in customer for the speed of hi-speed internet connections, a behavior toward add-on services for mobile phone service that is gaining its popularity, and an ongoing may have an impact on SHINEE, which contributes development of other types of connection technology about 5% of the Group’s total revenues. The main e.g. WiMax, WiBro (Wireless Broadband) or Mobile target customers of SHINEE are the group of people WiMax. Mobile WiMax is a mobile communication who not only admire technology and fashion products system which is at the same standard level as WiMax but also constantly change their preferences. Since that enables the users to connect to the internet with mobile phone users nowadays can send-receive mobile devices anytime anywhere even when traveling. pictures or songs from computer directly to mobile In such case, a technology of Voice over Internet Protocal phone, SHINEE may be at risk from a change in service behavior of customers who are capable of creating their own contents and entertainment or want new information or services that SHINEE does not have. Given such risk, SHINEE has thus placed a great emphasis on improving services offering more variety on a continuous basis by setting up a unit whose duty is to conduct a regular survey to assess customer needs so that SHINEE can develop products and services that match the change in customer behavior particularly on the use of services in the future.

Competition

Risk • Risk arising out of intense competition in the internet service business As a result of the liberalization of the telecommunication industry,the internet service business has encountered greater competition, particularly in the consumer market. During the past year, many competitors have used pricing strategies or marketing activities heavily and continually to attract customers and at the same time expand market share. The Company was pushed to pick up the pace in adjusting itself for survival in such an industry

77 CS LOXINFO


(VoIP) would save a lot of money from call charges, especially long distance calls both domestically and internationally. In the event that the Company cannot develop new service types that are corresponding to the change in technology, it may be at a disadvantage against its competitors in terms of services. Therefore, in order to minimize such risk, the Company plans to continue developing and improving its service types that are able to respond to consumer needs. However, the Company’s investment policy in technology must be in line with short-term and medium-term needs so that it allows greater flexibility in search of better technology and lower cost to improve or develop new services going forward. The Company currently holds a license to operate WiFi internet services.

Human

Resources Risk • Risk from being dependent upon key personnel The Company’s business is characterized as a specific business that needs to rely on knowledge,

capability, skill and experience of key personnel. In case the Company loses key management and employees, it may have an impact on the Company’s operations going forward. Nonetheless, the Company has set a policy that gives a importance to human resources by setting aside a budget for training and development of employees at all levels. At the same time, the Company places a great emphasis on building corporate culture as well as improving compensation, working environment, and incentive schemes to properly attract employees. In addition, the Company has issued and offered warrants aiming to boost its employees’ performance, i.e. to work hard to create maximum value for the Company, and retain them to work for the Company in the long term.

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Related Party Transactions In 2006 and 2007, the Company and its subsidiaries entered into a number of transactions with related parties that may have conflicts of interest with the Company and its subsidiaries. These connected transactions arose in the ordinary course of doing business and according to normal trade conditions. Significant related transactions between the Company, its subsidiaries, and related companies are as follows:- Related Party Transactions that may lead to Conflicts of Interest Summary of Transactions Transaction Description

Shin Corporation Group

Amount Dec 31,2007 (Million Baht)

Loxley Group

SingTel Group

Total

Shin Corporation Group

8.75 - 7.78

3.34 - 7.16

247.44 0.78 231.56

4.41

1.42

2.28 - -

0.81 - -

Total sales and services income 235.35 0.78 Total other income 216.62 Total expenses Total trade accounts receivable 62.83 and others Total trade accounts payable 36.38 and others 8.34 Total others current asset Total other current liability -

Shin

Amount Dec 31,2006 (Million Baht)

Loxley Group

SingTel Group

203.14 0.72 239.38

6.75 - 7.12

2.57 - 2.50

212.46 0.72 249.00

68.66

43.81

0.60

0.84

45.25

39.47 8.34 -

37.79 0.71 12.00

0.54 - -

- - -

38.33 0.71 12.00

Total

Corporation Group

Related Company Relationship Shin Satellite Public Co., Ltd. (SSA) Telecommunication satellite services operator

SHIN holds 41.28% shares in this company with shared directors

Description

Amount (Million Baht) Dec 31, 2006 Dec 31, 2007

- Sales and services 25.04 income 0.75 - Other income 48.52 - Expenses - Trade accounts receivable and 26.42 others - Trade accounts payable and 7.93 others

79 CS LOXINFO

Reasons The Company rented transponders on Thaicom satellites, which is the only operator in Thailand.

19.95 0.68 55.05 17.49 6.57

- Revenue from uplink, internet leased line services charges and Brochure advertising IPSTAR - Revenues from Broadband IP Transmission Commission - IPSTAR technical services charges - Accounts receivable for the uplink and internet leased line services charges - Accounts payable for IPSTAR technical services charges


Related Company

Relationship

Shin Broadband Internet (Thailand) Co., Ltd. (SBI) Internet related services provider; the website, server co-location Advanced Info Services Plc. (AIS) Mobile phone operator

The major shareholder of the Company at 39.89%. SSA holds 99.99% shares in this company SHIN holds 42.72% shares in this company with shared directors

Amount (Million Baht)

Description

Reasons

Dec 31, 2006 Dec 31, 2007

- Sales and services income 18.17 1.91 - Expenses 15.36 0.73 - Trade accounts receivable and 2.54 1.60 others - Trade accounts payable and others 6.56 0.02 - Sales and services income 167.96 169.02 - Expenses 4.43 6.04 - Trade accounts receivable 31.08 22.73 and others - Trade accounts payable and others 0.35 2.30

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The transactions were for purchases and sales IPSTAR. - Revenue from monthly internet services charges and selling IPSTAR equipment - Cost of IPSTAR equipment - Accounts receivable for monthly internet services charges - Accounts payable for IPSTAR equipment The Company used mobile phone servicess from AIS. - Revenue from monthly internet and revenue sharing - Airtime of mobile phone - Accounts receivable for monthly internet services charges - Accounts payable for airtime of mobile phone


Related Company

Relationship

Advanced Datanetwork Communication Co., Ltd. (ADC) Telephone line rental for Internet connection services provider Matchbox Co., Ltd. (SMB) Advertising agency

AIS holds 51% shares in this company with shared directors Shin holds 99.96% shares in this company with shared director

Amount (Million Baht)

Description

Reasons

Dec 31, 2006 Dec 31, 2007

- Sales and services income 6.77 1.60 0.03 0.04 - Other income 119.63 165.63 - Expenses - Trade accounts receivable and 0.50 0.10 others - Trade accounts payable and others 18.79 27.29 - Advance payment 8.34 0.71 We provide internet services, and have a monthly charge. We use SMB as our Advertising agency. - Sales and services 2.22 1.08 income 17.92 7.21 - Expenses - Trade accounts receivable and 0.19 0.19 others - Trade accounts payable and others 2.34 1.61 81 CS LOXINFO

The transactions were for the Company to rent and connect telephone lines in domestic and international link of internet connection services. - Revenue from monthly internet services charges - Other services charges - Telephone lines and international link for provisioning of internet connection services - Accounts receivable for monthly internet services charges - Accounts payable for telephone lines and international link - Services charges on the internet network and fiber optic SMB is a company in the Group that we use it as our agent in having advertisement in various media for the customers to use our servicess. The fees were at the market rate. - Revenue from monthly internet services charges - Advertising expenses - Accounts receivable for internet services charges - Accounts payable for advertising expenses


Related Company

Relationship

Other related companies The affiliates in SHIN Group with shared directors

Amount (Million Baht)

Description

Reasons

Dec 31, 2006 Dec 31, 2007

- Sales and services income 15.19 9.58 - Revenue from monthly internet services charges - Expenses 10.76 4.72 - Expenses on computer programs, services charges, and others - Trade accounts receivable and 2.10 1.70 - Accounts receivable for monthly others internet services charges - Trade accounts payable and - - Accounts payable for computer 0.41 others programs, services charges, and others - Other current liability - 12.00 - Short - term loan

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Loxley Group Related Company Relationship Loxley Public Co., Ltd. (Loxley) Importer and distributor of goods and technology products Other related companies

Holding in the Company with shared directors The affiliates in the group with shared directors

Amount (Million Baht)

Description

Reasons

Dec 31, 2006 Dec 31, 2007

- Sales and services income - Expenses - Trade accounts receivable and others - Trade accounts payable and others - Sales and services income - Expenses - Trade accounts receivable and others - Trade accounts payable and others

2.86 6.94 0.41 2.23 5.89 0.84 4.00 0.05

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2.47 6.50 0.26 0.54 4.28 0.62 0.34 -

The Company rent office spaces at Sua Pah building. - Revenue from monthly internet services charges - Rental space at Sua Pah building - Accounts receivable for monthly internet services charges - Accounts payable for rental space - Revenue from monthly internet services charges - Office rental and repair & maintenance computer - Accounts receivable for monthly internet services charges - Accounts payable for office rental


Singapore

Telecommunications Limited Group

Related Company Relationship

Description

- Sales and services income - Expenses - Trade accounts receivable and others - Trade accounts payable and others

Reasons

Dec 31, 2006 Dec 31, 2007

Other related companies SingTel own 13.41% of the Company’s share capital

The

Amount (Million Baht)

3.34 7.16 1.42 0.81

2.57 3.88 0.84 -

The Company provides internet servicess and has a monthly based services charge. It also operates the international link. - Revenue from monthly internet services charges - Cost of international links - Accounts receivable for monthly internet services charges - Accounts payable for international link

Necessity and Reasonableness of Transactions

Transaction Description Revenues from monthly internet services fees Revenues from transponder services, internet subscriber line fees, and broadband link services fees Receivable and payable interest Revenues and cost of agency and other commission fees Technical services fees for IPSTAR and operating costs Cost of server maintenance and operating costs Telephone line rental fees for provision of internet connection Advertising fees, telephone charges, computer program fees, accounting program fees and office rental fees Space rental fees and server co-location, and domain name registration fees Communication equipment maintenance fees and communication equipment rental fees

Price Policy At market price Cost plus appropriated profits At market price Cost plus appropriated profits At market price At market price At market price At market price At market price At market price

The above transactions have already been considered and agreed to the Company’s audit committee at the 2/2551 meeting held on February 19, 2008 with the opinion that such related transactions at present are part of normal business operations which support the group’s business and are in its best interests. Consequently, the said transactions as per details above are necessary and reasonable and the return thereof is determined in consideration of appropriate market price or cost plus profit (Cost Plus). 84 CS LOXINFO


Connected

Transaction Approval Procedure

In the connected transaction approval procedure, for the transactions that are normal business operations, such as internet services and telephone line rental and etc., the Company will set up conditions according to normal business practice using the market price normally charged to general customers or a determined price taking into account the actual cost incurred plus reasonable profit which is the rate charged to general customers. The Company will have its audit committee, or its auditor, or a specialist provide an opinion on the reasonableness of the transaction and price suitability. As for other connected transactions, the Company will set up conditions according to normal business practice and the market price applicable to general customers will be used. If the market price is not available, the Company will cause an independent expert to obtain appropriate price and condition for the best benefits of the Company and its shareholders. Before taking such action, the Company has to obtain approval from the Board of Directors or shareholders as appropriate. The Company will have its audit committee, or its auditor, or a specialist provide an opinion on the reasonableness of the transaction and price suitability in approving the connected transaction to support the decision of the Company’s Board of Directors or shareholders as the case may be. The Company complies with the regulations of the SEC and SET on information disclosure of connected transactions, acquisition of major assets of the Company and its affiliates, and the accounting standards established by Federation of Accounting Profession.

Policies

and Future Trend of Connected Transactions

It is projected that connected transactions in the future will still consist of normal business operations. Future connected transactions shall be in accordance with the above approval procedure.

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Management’s Discussion and Analysis The Company had a net profit from normal operating amounting to Baht 226 million or 6% from 2006. This has come from an increase of net profits from Internet access services and TMC

Overview

The Company had a net profit of Baht 261 million or Baht 0.42 per share, an increase of Baht 48 million or 23% from 2006. This comprises of net profit from normal operating amounting to Baht 226 million and net profit from an adjustment on its financial statements about an investment of Teleinfo Media Public Company Limited (“TMC”) totaling Baht 35 million. The Company reported a consolidated operating income for 2007 of Baht 2,600 million, an increase of Baht 88 million or 4% from 2006. This was due to 100% recognition of Mobile Content business’s performance and from the investment in Watta Classified Company Limited (çWattaé) since Q2/2007. At the Board of Directors meeting held on 9 August 2007, a resolution was passed to approve a share repurchase program to the maximum amount not exceeding Baht 225 million to utilize the Company’s excess liquidity and increase ROE. As of 22 November 2007 the total shares repurchased was 51.7 million shares or 8.3% of paid-up capital with total amount of Baht 222.1 million, achieving the number of shares repurchased for the Share Repurchase Project. Since Q1/2007, The Company has adopted The Thai Accounting Standard TAS 44 (amendment 2006) and TAS 45 (amendment 2006). This amendment requires investments in subsidiaries and associates to be accounted for at cost (previously by equity method) in separate financial statements. As a result of the changes in the accounting policy, the Company will have an accumulated a loss of Baht 620 million. However, the Shareholders’ Meeting held on 23 April 2007 approved the transfer of the legal reserve fund of Baht 46 million and the reserve fund in excess of the par value of Baht 574 million to offset the Company’ s accumulated losses. The transaction has been presented in “Adjustment from compensation for deficit” in the statement of separate changes in shareholders’ equity for the year ending 31 December 2007.

Operating Results

Comparison of the consolidated financial statement for the year ending 31 December 2007 to the consolidated financial statement for the same period of the previous year The Company reported a consolidated net profit for 2007 of Baht 261 million, an increase of Baht 48 million or up 23% from 2006. In addition, the Company had a profit before interest expense and income tax of Baht 391 million, an increase of Baht 49 million or up 14% due to an increase of profit from Internet access services and the Publishing of the Thailand YellowPages and its Voice Info Service and net profit from an adjustment on its financial statements regarding an investment of TMC. Selected financial information (Unit : Million Baht) Description 2007 2006 Variance (%) Total revenue Cost of sales and service SG&A xepenses Operating profit Deferred income tax Net profit EPS (Baht)

Revenue from dial-up and broadband services decreased by 42% and 11%, respectively while revenue from leased lines services increased by 14% due to the Company having instead put more effort on sales and expanded customer base in business or corporate segment

2,600 1,382 827 391 130 261 0.42

2,512 1,365 805 342 119 213 0.34

4 1 3 14 9 23 24

Total Revenue from sales and services In 2007, the Company earned Baht 2,518 million in total revenues from sales and services, an increase of Baht 57 million, or 2%, over 2006. Details are as given below:-

1) Revenue from Internet Access In 2007, the revenue from internet access services was Baht 1,311 million, a decrease of Baht 29 million, or 2% from 2006. The details are as follows:- • Revenue from leased lines services increased by Baht 111 million due to the Company having instead put more effort on sales and expanded customer base in business or corporate segment by concentrating on the quality of service and value added services, to respond to customer needs.

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Revenue from publishing Yellow Pages and Voice Info Services decreased 6%. This resulted from launching the City Yellow Pages.

• Revenue from dial up and broadband internet services decreased by Baht 108 million and Baht 32 million, respectively. This was due to some customers having migrated to lower priced broadband of incumbent telecom operators. 2) Revenue from Publishing Yellow Pages and Voice Info Service In 2007, the Company recognized revenue from the publishing of Thailand YellowPages, and Voice Info Service amounting to Baht 861 million, a decrease of Baht 56 million or 6% as compared to 2006, amounting to Baht 917 million. This resulted from a decrease of the sale of advertising space in the specific books (Thailand Export-Import Yellow Pages and Visitors’ Guide to Thailand Guidebook). Therefore, the Company having instead put more effort in developing new products emphasizing the sale of advertising space in sub-community areas. However, these projects were still on developing processes, so its revenue cannot cover the decrease of the sale of advertising space in such specific books. The Company had further expanded the Publishing Yellow Pages Service into City Yellow Pages (City Pages) in order to better facilitate specific lifestyles in each city area. At the end of year 2007, the Company had launched two volumes of City Yellow Pages (Nonthaburi Book and Pathumthani Book). Moreover, the Company plans to expand this City Yellow Pages into other potential provinces of Thailand. 3) Revenue from Mobile Content Service In 2007, the Company recognized revenue from Mobile Content Service of Baht 147 million, an increase of Baht 44 million or 43% over 2006 because the Company recognized 100% of Mobile Content Service revenue in this year. Incidentally, the Company recognized only 51%, 60% and 100% of Mobile Content Service revenue in Q2/2006, Q3/2006 and Q4/2006, respectively.

4) Revenue from Print Classified Business The Company recognized revenue from Print Classified Business for 2007 of Baht 133 million. This was due to an investment in Watta Classified Company Limited since Q2/2007. Cost of sales and services In 2007, the Company had total costs of Baht 1,382 million, an increase of Baht 17 million or 1% Cost of sales and services increased by 1% due to cost over 2006, which had amounted to Baht 1,365 million. This was due to an increased cost from Mobile of Mobile Content Service Content Service and Print Classified Businesses. Coincidentally, cost of Internet Service and Publishing the and Print Classified Business Thailand YellowPages decreased. Details are as given below:- increased while cost of 1) Cost of Internet services Internet Service and In 2007, costs associated with internet services was Baht 896 million, decreasing Baht 47 million or Publishing the Thailand 5% over 2006, amounting to Baht 943 million, because of efficient network rental cost management and the YellowPages decreased. decrease of rental cost of telephone lines due to revenue from dial up decreasing. 2) Cost of Voice Info Service and Publishing of the Yellow Pages Costs from the Yellow In 2007, the Company recognized costs from the Yellow Pages and Voice Info Service amounting to Pages and Voice Info Service decreased by 16% Baht 289 million, a decrease of Baht 54 million or 16% from 2006, amounting to Baht 343 million. This from cost of publishing of resulted from a decrease of costs of some specific handbooks. some specific handbooks 3) Cost of Mobile Content Service In 2007, the Company recognized revenue from Mobile Content Service of Baht 89 million, an increase of Baht 32 million or 56% over 2006 because the Company recognized 100% of costs from Mobile Content Services this year. Incidentally, the Company recognized only 51%, 60% and 100% of cost from Mobile Content Service in Q2/2006, Q3/2006 and Q4/2006, respectively. 4) Cost of Print Classified Business The Company recognized costs from Print Classified Business for 2007 of Baht 90 million. This was due to an investment in Watta Classified Company Limited since Q2/2007.

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Selling and administrative expenses increased by 3% from Mobile Content Service and Print Classified Business. Coincidentally, selling and administrative expenses of Internet service and Publishing the Thailand YellowPages decreased.

Gross Profit and net profit increased of 4% and 23%, respectively, because of the increase in revenues from leased line services, efficient network rental cost management, and the decrease in marketing expenses.

Selling and Administrative Expenses The Company had total selling and administrative expenses during 2007 of Baht 827 million, an increase of Baht 22 million or 3% over 2006, amounting to Baht 805 million. This was due to the increase of selling and administrative expenses for Mobile Content Service and Print Classified Business. Coincidentally, selling and administrative expenses of Internet service and Publishing the Thailand YellowPages decreased. Details are as given below:- 1) Selling and administrative expenses of Internet services Selling and administrative expenses of internet services in 2007 was Baht 312 million, a decrease of Baht 10 million, or 3% over 2006, which had amounted to Baht 322 million, due to the Company had concentrated on marketing directly to corporate customers, rather than individual customers. This way, the Company could reduce a lot of marketing and advertising expenses. 2) Selling and Administrative Expenses of the Yellow Pages and Voice Info Service The Company recognized selling and administrative expenses of publishing of the Yellow Pages in 2007 of Baht 406 million, a decrease of Baht 38 million or 9% over 2006, which had been Baht 444 million. This resulted from a decrease of marketing expenses and the impact of the adjustment on provision from acquisition of investment (TMC). 3) Selling and administrative expenses of Mobile Content Service In 2007, the Company recognized selling and administrative expenses of mobile content service of Baht 56 million, an increase of Baht 18 million or 47% over 2006, amounting to Baht 38 million because the Company recognized 100% of selling and administrative expenses from Mobile Content Services in this year. By the way, the Company recognized only 51%, 60% and 100% of selling and administrative expenses from Mobile Content Service in Q2/2006, Q3/2006 and Q4/2006, respectively. 4) Selling and administrative expenses of Print Classified Business The Company recognized selling and administrative expenses for Print Classified for 2007 of Baht 53 million. This was due to an investment in Watta Classified Company Limited since Q2/2007. Gross Profit and Net Profit The Company had a gross profit and net profit amounting to Baht 1,136 million and Baht 261 million respectively, an increased of 4% and 23%, as compared to 2006, which was presented Baht 1,095 million and Baht 213 million, respectively. These were mainly due to the increase in revenues from leased line. Moreover, cost of internet services decreased due to efficient network rental cost management and the decrease in marketing expenses.

Financial Position

At the end of the year 2007, the Company had total assets of Baht 2,368 million, a decrease of Baht 247 million or 9% from the end of the previous year when total assets stood at Baht 2,615 million. Details are given below:-

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The major asset components comprise the following: 31 December 2007 Assets Cash and cash equivalents Trade accounts receivable and accrued income, net Inventories Current assets PP&E, net Goodwill, net Withholding tax, net Total assets Trade accounts payable Current liabilities Provision from acquisition of investment Non current liabilities Total liabilities Total shareholder’ s equity

Amout (MB) 713 340 98 1,209 322 639 58 2,368 335 729 - 14 743 1,625

% of tolal Assets 30 14 4 51 14 27 2 100 14 31 - 1 31 69

31 December 2006 Amout % of tolal (MB) Assets 779 30 323 12 113 4 1,267 48 335 13 739 28 97 4 2,615 100 306 12 675 26 121 5 132 5 807 31 1,808 69

At the end of 2007, current assets amounted to Baht 1,209 million, a decrease of Baht 58 million or 5%. • Cash and cash equivalent are Baht 713 million, a decrease of Baht 66 million from its operation and treasury stock program. • Trade accounts receivable and accrued income is Baht 340 million, an increase of Baht 17 million or 5%. This resulted from an investment in Watta Classified Company Limited since Q2/2007. • Inventories are Baht 98 million, a decrease of Baht 15 million because of a decrease of the reserved printing paper for the Thailand YellowPages Book of Teleinfo Media (Public) Company Limited. Furthermore, the Company had Baht 639 million in net goodwill, a decrease of Baht 100 million over 2006. This was due to • A decrease of goodwill amortization of TMC which was resulted from the adjustment of provision from acquisition of investment of TMC Baht 67 million. • The amortization of goodwill - net of the subsidiaries (LoxServe, TMC, ADV and Watta) for year 2007 totaling Baht 69 million. • An increase of the negative goodwill from the additional acquisition of Loxley Information Services Company Limited (“LoxServe”) in 2007, amounting to Baht 13 million. • An increase of goodwill from an acquisition of Watta Classified Company Limited, amounting Baht 81 million.

Liabilities and Shareholder’s Equity By the end of 2007, the Company had total liabilities of Baht 743 million, a decrease of Baht 64 million or 8% from the end of 2006, when total liabilities stood at Baht 807 million. This came largely from the impact of the adjustment on provision from acquisition of investment (TMC). Shareholder’s Equity In 2007, the Company had shareholdersû equity of Baht 1,625 million, a decrease of Baht 183 million or 10%. This was due to • Treasury Stock programs: the cumulative number of shares repurchased as at 31 December 2007 totaling Baht 222 million, achieving the maximum amount of the Share Repurchase Project. • 2006 dividend payment (0.14 Baht/share) and 2007 interim payment (0.20 Baht/share) totaling Baht 213 million • Minority interests - net decreased Baht 15 million. This resulted from an additional acquisition of Loxley Information Services Company Limited (“LoxServe”) from the minority shareholders on February 2007

(1.85%) and May 2007 (3.81%) • Net profit for the year increased Baht 261 million • The increase in its share capital to the amount of Baht 6 million due to the exercising of the right in pursuance with the ESOP Program

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Assets Quality

Accounts Receivable As at 31 December 2007, the Companyûs trade accounts receivable and accrued income, net, amounted to Baht 340 million, equivalent to 14% of total assets. The trade accounts receivable comprised of third parties and related parties, represented 88% and 12% of total trade accounts receivable, respectively. The average collection period was 48 days in 2007 Trade Accounts receivable: The Companyûs policy of providing credit to customers is divided into two types, as follows:- 1) Internet Access Services Business Trade accounts receivable consist of two types of customer:- 1. Individual customers equal to 17% of total trade accounts receivable, provided with a credit term of 30 days. Average collection period was 31 days in 2007, decreasing from 32 days in 2006. 2. Corporate customers and government agencies equal to 83% of total trade accounts receivable provided with a credit term of 30 - 90 days. Average collection period was of 42 days in 2007, increasing from 40 days in 2006. 2) Publishing the Thailand YellowPages Business Average collection period in year 2007 was 79 days (89 days in 2006). The Companyûs credit term policies are base on the billing of each advertiser:- • Less than Baht 35,000 shall be paid in full or within 30 days • More than Baht 35,000 shall be paid in full or in 4 installments 3) Mobile Content Service Business Average collection period in year 2007 was 23 days (24 days in 2006), with a credit term of 30 days. 4) Print Classified Business Trade accounts receivable consist of two types of customer:- 1. Individual customers for 2007 equal to 12% of total trade accounts receivable, decreasing from 20%

in 2007, provided with a credit term of 30 - 60 days. Average collection period was 75 days in 2007, decreasing from 103 days in 2006. 2. Corporate customers and government agencies for 2007 equal to 88% of total trade accounts receivable, increasing from 80% in 2006, provided with a credit term of 45 - 120 days. Average collection period was of 78 days in 2007, increasing from 58 days in 2006. Trade Accounts receivable as of December 31, 2007 2007 2006 Overdue period Unit: Million Baht % Unit: Million Baht % Current 136 35% 82 21% 63 16% 90 23% Less than 90 days 90 - 180 days 29 7% 35 9% 180 - 360 days 93 24% 105 27% 67 18% 74 19% Over 360 days Total trade accounts receivable 388 100% 386 100% Less allowances for doubtful accounts (59) 15% (76) 20% Net trade accounts receivable 329 85% 310 80% Based on the table above, the Company had net trade accounts receivable of Baht 388 million. In addition, the Company had an allowance for doubtful accounts of Baht 59 million or 15% of total trade accounts receivable. In view of the collection history management, believes that the allowances for doubtful account are appropriate.

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Liquidity In 2007, the Companyûs current ratio was 1.66 times, decreasing from 2006 which it was at 1.88 times.

The Companyûs quick ratio was 1.45 times, decreasing from 2006 which it was at 1.63 times. The decreases came largely from a decrease of the reserved printing paper for the Thailand YellowPages Book of Teleinfo Media (Public) Company Limited and treasury stock program. The Companyûs cash flows from operations amounted to Baht 584 million, a decrease of 17% from last year. This resulted from a decrease of deferred income tax and amortization accounts. The Companyûs cash flow from investment was Baht 221 million, increasing by 89% from 2006. This was due to an investment in Watta Classified Company Limited since Q2/2007. The Company also paid dividend and purchased treasury stock totaling Baht 213 million and Baht 222 million in 2007, respectively. Clarification 1. The impact of the adjustment on Provision from acquisition of investment As at 31 December 2007 the Company has an adjustment on provision from acquisition of investment stated at the accompanying financial statements in a total amount of Baht 124.8 million. This provision derived from the purchase of shares from Teleinfo Media Public Company Limited (“TMC”) from TOT. Under the condition of purchasing, the Company has a commitment to pay an additional amount for the shares of Baht 127.5 million to TOT in 2008. (Please see more detail in “Clarification No.4: Investment in TMC”) TMC’s operating results for 1 January 2006 to 31 December 2007 showed revenue of Baht 1,778 million. TMC was unable to generate aggregate total revenue of Baht 2,000 million or more within 31 December 2007. As a result, the Company may not be required to pay the additional share price and has therefore reversed the provision from acquisition of investment in the current quarter. The impacts of this transaction on the accompanying consolidated financial statements as at 31 December 2007 are as follows:- • Balance sheet as of 31 December 2007: The decrease in goodwill Baht 89.6 million and the decrease in provision from acquisition of investment - net Baht 124.8 million. • Statement of income for the year ended 31 December 2007: The increase in net profit Baht 35.2 million. This resulted from the decrease in interest expense and administrative and selling expenses Baht 4.1 million and Baht 7.7 million, respectively, with other income increased by Baht 23.4 million.

2. The effect of change in investment accounting policy Since Q1/2007, the Company has changed the accounting method in recording investments in subsidiaries and associates in separate financial statements from the equity method to cost method as per Thai Accounting Standard No.44. As a consequence, the Company has restated the prior year’s comparative financial statements retrospectively, as if the cost method had always been in use. Therefore, the 2006 comparative figures are prepared on the assumption that the new accounting method has been applied. The Company has recorded the investment in subsidiaries and associates at historical costs in the separate financial statements, which lead to net profit in separate financial statements to be different from those in the consolidated financial statements. The details are as follows:- Consolidated ended 31 December Company ended 31 December 2007 2006 2007 2006 Net prfit (MB) 261 213 490 190 Basic earnings pershare (Baht) 0.42 0.34 0.80 0.30 Diluted earnings pershare (Baht) 0.42 0.34 0.79 0.30

Moreover, the effect of this change in investment accounting policy will be as follows:- 1. The net profit for the year ending 31 December 2007, presented in separated income statements increased Baht 229 million. This resulted from dividend received from TMC in 2007. 2. Investment in subsidiaries and retain earnings on the balance sheet as at 31 December 2006, presented in separate financial statement, decreased Baht 640 million. The accumulated change from the change in this accounting policy has been presented in çPrior period adjustmenté at the statement of separate changes in shareholdersû equity.

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Nonetheless, this is merely a change in accounting policy for investments in subsidiaries and associates in separate financial statements, not a change in any fundamental factors affecting the Companyûs business.

3. Revenue and Cost Recognition Policy of TMC 1. Revenue Recognition of TMC TMC had its main revenue from the sale of advertising space in the Thailand Yellow Pages. According to the General Accepted Accounting Principle (GAAP), TMC recognized revenue of Yellow Pages by the straight-line method, starting from the month the Yellow Pages was issued in the current year to the month it will be issued next year. For 2006 onward, TMC will recognize revenue from the YellowPages in 12 months by the useful life of the telephone directory from 16 January of each year to 15 January of next year. Year issuing Period (month) Started Ended 12 2006 January 16, 2006 January 15, 2007 2007 12 January 16, 2007 January 15, 2008 2008 12 January 16, 2008 January 15, 2009 2. Cost Recognition of TMC The Costs of TMC are mainly derived from direct variable costs, such as the cost of paper used for printing the Yellow Pages. This cost was recognized by the same method of revenue recognition as mentioned above. Fixed costs are recognized when they occur.

4. Investment in TMC Date March 4, 2004 June 29, 2005

Proportion (%) 63.25 36.75

amout (million Baht) • 507 • 510 (on transter date) plus • 128 million if TMC earns revenue in 2006 and 2007 combined equal to or higher than Baht 2,000 million within 30 days after the auditor certifies the financial

5. Investment in ADV Date Proportion (%) amout (million Baht) April 4, 2006 51.00 17.95 July 29, 2006 9.09 3.20 September 27, 2006 39.91 14.05 Total 100.00 35.20 ADV also held 70% stakes in Shinee Dot Com (“Shinee”), a mobile content operator (January 2008: ADV held 99.99% stakes in Shinee Dot Com) 6. Investment in Watta Date April 27, 2007

Proportion (%) 60.00

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amout (million Baht) 88


Board of Directors’ Responsibility

for Financial Reporting

The Board of Directors is responsible for CS LoxInfo Public Company Limited’s financial statements and for CS LoxInfo Public Company Limited and its subsidiaries’ consolidated financial statements, including the financial information presented in this annual report. The aforementioned financial statements are prepared in accordance with generally accepted accounting principles, using careful judgment and the best estimation. Important information is adequately and transparently disclosed in the notes to financial statements to the Company’s shareholders and investors. The Board of Directors has provided and maintained a risk management system and appropriate and efficient internal controls to ensure that accounting records are accurate, have integrity and are adequate to protect its assets and uncover weakness in order to prevent fraud or materially irregular operation. In this regard, the Board of Directors has entrusted an Audit Committee responsible for review the accounting policy and financial reports, review internal controls, internal audit and risk management system. Such comment on these issues have been included in the Audit Committee Report, which is presented in this annual report. The financial statements of the Company and the consolidated financial statements of Company and its subsidiaries have been examined by an external auditor, PriceWaterhouseCoopers ABAS Limited. In conducting their audit and to express an opinion in accordance with generally accepted auditing standards, the Company has supported them with all of the Company’s records and related data. The auditor’s opinion is presented in the auditor’s report as part of this annual report. The Board of Directors believes that the Company’s overall internal control system has functioned up to a satisfactory level and rendered credibility and reliability to CS LoxInfo Public Company Limited’s financial statements and for the consolidated financial statements of CS LoxInfo Public Company Limited and its subsidiaries for the period ended December 31, 2007 and that they have been prepared according to generally accepted principles and related regulations.

Prof. Wongkulpat Snidvongs na Ayudyha, M.D. Chairman of the Board of Directors

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Dr. Dumrong Kasaemset Chairman of the Executive Committee


Auditor’s Report

To the Shareholders of CS LoxInfo Public Company Limited

I have audited the accompanying consolidated and company balance sheets as at 31 December 2007, and the related consolidated and company statements of income, changes in shareholders’ equity, and cash flows for the year then ended of CS Loxinfo Public Company Limited and its subsidiaries, and of CS Loxinfo Public Company Limited, respectively. The Company’s management is responsible for the correctness and completeness of information in these financial statements. My responsibility is to express an opinion on these financial statements based on my audit. The consolidated and company financial statements (before restatement), for the year ended 31 December 2006 of CS Loxinfo Public Company Limited and its subsidiaries and of CS Loxinfo Public Company Limited were audited by the another auditor from the same firm as myself, whose report dated 22 February 2007 expressed an unqualified opinion on those statements. I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion, the consolidated and company financial statements referred to above present fairly, in all material respects, the consolidated and company financial position as at 31 December 2007, and the consolidated and company results of operations, and cash flows for the year then ended of CS Loxinfo Public Company Limited and its subsidiaries, and of CS Loxinfo Public Company Limited, respectively, in accordance with generally accepted accounting principles.

Prasit Yuengsrikul Certified Public Accountant (Thailand) No. 4174 PricewaterhouseCoopers ABAS Limited Bangkok 20 February 2008

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CS LoxInfo Public Company Limited Balance Sheets As at 31 December 2007 and 2006

Consolidated Company 2007 2006 2007 2006 Restated Notes Baht Baht Baht Baht Assets Current assets 4 712,899,866 779,013,897 222,134,315 177,706,222 Cash and cash equivalents Trade accounts receivable and 5, 33 340,408,830 323,453,089 152,026,756 144,078,202 accrued income, net 33 558,370 162,010 281,829 420,465 Amounts due from related parties 6 97,985,018 113,342,189 8,626,404 7,180,852 Inventories, net Advance payments to a related party 33 - 8,335,600 - 8,335,600 for services 7 56,761,227 42,372,587 18,490,063 9,387,054 Other current assets 1,208,613,311 1,266,679,372 401,559,367 347,108,395 Total current assets Non-current assets Investments in subsidiaries and an associate 8 - - 942,901,379 957,634,703 - cost method Investments in subsidiaries and an associate 8 - 3,692,704 - - - equity method 9 4,706,872 2,550,971 - - Long-term investment - other 10 322,093,137 334,945,437 173,344,003 199,839,850 Property, plant and equipment, net Equipment under concession 11 2,779,291 13,271,670 2,779,291 13,271,670 agreements, net 12 33,826,835 47,793,346 9,048,839 17,088,490 Intangible assets, net 13 639,029,373 739,157,906 - - Goodwill, net 14 70,154,648 84,033,394 27,892,221 29,429,152 Deferred tax assets 58,227,021 97,362,216 21,966,299 47,249,689 Withholding tax receivable Deposits 28,863,963 25,758,958 13,260,863 13,396,423 1,159,681,140 1,348,566,602 1,191,192,895 1,277,909,977 Total non-current assets Total assets 2,368,294,451 2,615,245,974 1,592,752,262 1,625,018,372 The notes to the consolidated and company financial statements on pages 102 to 144 are an integral part of these financial statements.

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CS LoxInfo Public Company Limited

Balance Sheets (Continued) As at 31 December 2007 and 2006

Consolidated

Company

2007 2006 2007 2006 Restated Notes Baht Baht Baht Baht Liabilities shareholders’ equity Current liabilities Trade accounts payable 33 335,445,794 306,240,416 221,835,675 190,824,854 Other accounts payable 33 14,386,207 26,671,846 2,564,872 7,847,041 Amounts due to related parties 33 2,552,614 2,528,056 - 34,884 Current portion of obligations under financial lease 17 717,802 - - - Short-term loan from a related party 33 12,000,000 - - - Foreign currency forward contracts payable, net 34 25,524 706,920 - - Unearned income and advances received from customers 202,126,245 210,716,347 104,459,368 112,147,539 Accrued expenses 33 104,678,375 105,367,819 48,368,065 46,074,046 Other current liabilities 16 57,346,073 22,905,382 13,808,497 7,531,081 Total current liabilities 729,278,634 675,136,786 391,036,477 364,459,445 Non-current liabilities Provision from acquisition of investment 18 - 120,765,376 - 120,765,376 Obligations under finance leases 17 2,542,794 - - - Other non-current liabilities 11,349,704 10,908,970 11,034,530 9,694,969 Total non-current liabilities 13,892,498 131,674,346 11,034,530 130,460,345 Total liabilities 743,171,132 806,811,132 402,071,007 494,919,790 The notes to the consolidated and company financial statements on pages 102 to 144 are an integral part of these financial statements.

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CS LoxInfo Public Company Limited Balance

Sheets (Continued) As at 31 December 2007 and 2006

Consolidated

Company

2007 2006 2007 Notes Baht Baht Baht Shareholders’ equity Share capital 19 660,849,474 649,020,074 660,849,474 Authorised share capital - ordinary shares Issued and paid-up share capital - ordinary shares 626,899,344 625,000,000 626,899,344 Premium on share capital 421,625,182 992,141,435 421,625,182 Treasury shares 29 (222,088,462) - (222,088,462) Retained earnings Appropriated Legal reserve 30 24,480,140 45,636,154 24,480,140 Treasury share reserve 31 222,088,462 - 222,088,462 Unappropriated 529,046,642 107,301,341 117,676,589 Total parent’s shareholders’ equity 1,602,051,308 1,770,078,930 1,190,681,255 Minority interests 32 23,072,011 38,355,912 - Total shareholder’s equity 1,625,123,319 1,808,434,842 1,190,681,255 Total liabilities and shareholders’ equity 2,368,294,451 2,615,245,974 1,592,752,262

2006 Restated Baht

649,020,074 625,000,000 992,141,435 - 45,636,154 - (532,679,007) 1,130,098,582 - 1,130,098,582 1,625,018,372

The notes to the consolidated and company financial statements on pages 102 to 144 are an integral part of these financial statements.

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CS LoxInfo Public Company Limited Statements of Income For the years ended 31 December 2007 and 2006

Consolidated Company 2007 2006 2007 2006 Restated Notes Baht Baht Baht Baht Revenues 33 2,517,548,093 2,460,375,882 1,403,609,074 1,445,115,051 Revenues from sales and services 20 82,148,216 51,842,830 34,815,325 23,840,913 Other income Dividend received from a subsidiary - - 359,995,993 80,693,310 Share of net result from investments - 39,928 18,605 - - equity method Total revenues 2,599,736,237 2,512,237,317 1,798,420,392 1,549,649,274 Expenses 33 1,381,583,855 1,365,101,046 952,292,337 994,317,061 Cost of sales and services 822,883,729 800,590,040 306,028,592 305,923,038 Selling and administrative expenses 3,717,696 2,400,000 3,707,696 2,345,000 Directors’ remuneration 485,994 2,022,458 501,269 434,723 Loss on foreign exchange Total expenses 2,208,671,274 2,170,113,544 1,262,529,894 1,303,019,822 Profit before interest expense and 22 391,064,963 342,123,773 535,890,498 246,629,452 income tax 21, 33 355,543 5,429,423 257,754 5,425,362 Interest expense Profit before income tax 390,709,420 336,694,350 535,632,744 241,204,090 26 129,979,119 119,158,517 46,029,946 51,304,851 Income tax Profit before minority interests 260,730,301 217,535,833 489,602,798 189,899,239 Loss (profit) attributable to minority 265,011 (4,951,275) - - interests, net Net profit for the year 260,995,312 212,584,558 489,602,798 189,899,239 Earnings per share 23 0.42 0.34 0.80 0.30 Basic earnings per share 0.42 0.34 0.79 0.30 Diluted earnings per share

The notes to the consolidated and company financial statements on pages 102 to 144 are an integral part of these financial statements.

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CS LoxInfo Public Company Limited

Statements of Changes in Shareholders’ Equity For the years ended 31 December 2007 and 2006

Consolidated (Baht) Reserve

Premium paid-up on share Treasury Legal for treasury Minority share capital capital shares reserve shares Retained interests Notes (Note 19) (Note 19) (Note 29) (Note 30) (Note 31) earnings (Note 32) Total Opening balance at 1 January 2006 - as restated 625,000,000 992,141,435 - 35,006,925 - 486,596,012 19,740,143 2,158,484,515 Legal reserve - - - 10,629,229 - (10,629,229) - - Net profit for the year - - - - - 212,584,558 - 212,584,558 Dividend payment - - - - - (581,250,000) - (581,250,000) Minority interests from acquisition of investment - - - - - - 13,664,494 13,664,494 Increase in minority interests during the year - - - - - - 4,951,275 4,951,275 Closing balance as at 31 December 2006 625,000,000 992,141,435 - 45,636,154 - 107,301,341 38,355,912 1,808,434,842 Opening balance at 1 January 2007 625,000,000 992,141,435 - 45,636,154 - 107,301,341 38,355,912 1,808,434,842 Increase in share capital during the year 19 1,899,344 4,026,600 - - - - - 5,925,944 Offsetting the premium on share capital and legal reserve with deficit 19 - (574,542,853) - (45,636,154) - 620,179,007 - - Increase in treasury shares during the year 29 - - (222,088,462) - - - - (222,088,462) Legal reserve 30 - - - 24,480,140 - (24,480,140) - - Reserve for treasury shares 31 - - - - 222,088,462 (222,088,462) - - Net profit for the year - - - - - 260,995,312 - 260,995,312 Dividend payment 36 - - - - - (212,860,416) - (212,860,416) Decrease in minority interests from the acquisition of shares 32 - - - - - - (20,890,495) (20,890,495) Increase in minority interests from acquisition of investment 32 - - - - - - 5,871,605 5,871,605 Decrease in minority interests during the year 32 - - - - - - (265,011) (265,011) Closing balance as at 31 December 2007 626,899,344 421,625,182 (222,088,462) 24,480,140 222,088,462 529,046,642 23,072,011 1,625,123,319 The notes to the consolidated and company financial statements on pages 102 to 144 are an integral part of these financial statements. Issued and

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CS LoxInfo Public Company Limited Statements of Changes in Shareholders’ Equity (Cont’d) For the years ended 31 December 2007 and 2006

Opening balance at 1 January 2006 Prior year adjustment Opening balance at 1 January 2006 - as restated Legal reserve Net profit for the year Dividend payment Closing balance as at 31 December 2006 - as restated Opening balance at 1 January 2007 Prior year adjustment Opening balance at 1 January 2007 - as restated Increase in share capital during the year Offsetting the premium on share capital and legal reserve with deficit Increase in treasury shares during the year Legal reserve Reserve for treasury shares Net profit for the year Dividend payment Closing balance as at 31 December 2007

Company (Baht)

Issued and Premium Reserve paid-up on share Treasury Legal for treasury share capital capital shares reserve shares Notes (Note 19) (Note 19) (Note 29) (Note 30) (Note 31)

Retained earnings (Restated)

Minority interests

Total (Restated)

3

625,000,000 992,141,435 - -

- 35,006,925 - -

- 486,596,012 - (617,295,029)

- 2,138,744,372 - (617,295,029)

625,000,000 992,141,435 - - - - - -

- 35,006,925 - 10,629,229 - - - -

- (130,699,017) - (10,629,229) - 189,899,239 - (581,250,000)

- 1,521,449,343 - - - 189,899,239 - (581,250,000)

625,000,000 992,141,435

- 45,636,154

- (532,679,007)

- 1,130,098,582

3

625,000,000 992,141,435 - -

- 45,636,154 - -

- 107,301,341 - (639,980,348)

- 1,770,078,930 - (639,980,348)

625,000,000 992,141,435

- 45,636,154

- (532,679,007)

- 1,130,098,582

-

-

-

-

5,925,944

- 620,179,007

-

-

19

1,899,344

4,026,600

19

- (574,542,853)

29 30 31 36

- - - - -

-

- (45,636,154)

- (222,088,462) - - - - - 24,480,140 - (24,480,140) - - - 222,088,462 (222,088,462) - - - - 489,602,798 - - - - (212,857,607)

- (222,088,462) - - - - - 489,602,798 - (212,857,607)

626,899,344 421,625,182 (222,088,462) 24,480,140 222,088,462 117,676,589

- 1,190,681,255

The notes to the consolidated and company financial statements on pages 102 to 144 are an integral part of these financial statements.

100 CS LOXINFO


CS LoxInfo Public Company Limited

Statements of Cash Flows For the years ended 31 December 2007 and 2006

Consolidated

Company

2007 2006 2007 2006 Restated Notes Baht Baht Baht Baht Net cash flows from operating activities 24 584,279,442 703,551,850 275,143,210 295,569,653 Cash flows from investing activities 2,147,283 (19,817) - - Increase from long-term investment - other Payments for investment in subsidiaries, 25 (84,603,309) (16,759,458) (97,946,105) (35,963,998) net of cash acquired Proceeds from reduction in share capital 256,558,474 of a subsidiary - - - 3,731,722 - 3,731,722 - Cash received from the liquidation of an associate 8 (b) 8 (b) - - 359,995,993 80,693,310 Dividend received from a subsidiary Payments for acquisitions of property, (66,210,698) (76,567,706) plant and equipment (137,426,638) (105,273,404) (15,198,745) (1,578,817) (2,698,598) Payments for intangible assets (9,221,126) 1,451,619 20,415,712 309,522 18,314,661 Proceeds from sale of equipment 3,000,000 - - - Proceeds from sale of intangible assets Net cash flows receipt from (used in) (220,920,449) (116,835,712) 198,301,617 240,336,143 investing activities Cash flows from financing activities (254,500) - - Repayments of finance leases liabilities (452,487) 19 5,925,944 - 5,925,944 - Proceeds from increase in share capital 29 (222,088,462) - (222,088,462) - Payments for treasury shares 36 (212,860,416) (581,250,000) (212,857,607) (581,250,000) Dividend payment Net cash used in financing activities (429,475,421) (581,504,500) (429,020,125) (581,250,000) Net increase (decrease) in cash (66,116,428) 5,211,638 44,424,702 (45,344,204) and cash equivalents 779,013,897 774,028,396 177,706,222 223,232,495 Cash and cash equivalents, opening balance 2,397 (226,137) 3,391 (182,069) Effects of exchange rate changes Cash and cash equivalents, closing balance 4 712,899,866 779,013,897 222,134,315 177,706,222 Supplementary information for cash flows: Withholding tax deduct at source and 86,444,178 51,115,140 30,144,488 26,718,998 income tax paid 109,955 4,124 - 63 Interest paid Non-cash transactions 12,302,527 22,369,086 2,564,872 7,847,041 Acquisitions of equipment through debts 2,083,680 4,302,760 - - Acquisitions of intangible assets through debts The notes to the consolidated and company financial statements on pages 102 to 144 are an integral part of these financial statements.

101 CS LOXINFO


CS LoxInfo Public Company Limited Notes to the Consolidated and Company Financial Statements For the years ended 31 December 2007 and 2006

1 General information

CS Loxinfo Public Company Limited (“the Company”) is a public limited company incorporated and resident in Thailand. The address of the Company’s registered office is as follows:- 414 Phaholyothin Road, Sam Saen Nai, Phayathai, Bangkok 10400. CS Loxinfo Public Company Limited (“the Company”) and its subsidiaries are collectively referred to as “the Group”. The Company is an associate of the Shin Satellite Public Company Limited Group. Shin Broadband Internet (Thailand) Company Limited (a subsidiary of Shin Satellite Public Company Limited) owns 43.48% of the Company’s shares (taking into account the effect of treasury shares). The Company has been registered as a listed company since April 2004. The principal activities of the Company and its subsidiaries and associate (“the Group”) are the provision of internet data centre services, internet, satellite uplink-downlink services for domestic and international communications, the printing and publishing of telephone directories, the conducting classified and printing directories businesses and mobile contents. The Company entered into concession agreements with CAT Telecom Public Company Limited (“CAT”) for a period of 22 years from 9 August 1994 to 8 August 2016 to provide satellite uplink-downlink and satellite internet services, and to provide internet services in Thailand for a period of ten years from 16 April 1997 to 15 April 2007. The National Telecommunications Commission (“NTC”) has current responsibility for granting licenses to provide internet access services in Thailand. The Company and its subsidiary operate the business to provide internet and telecommunication services under licenses granted by NTC as follows: Type of license Issued Date Period Licenses of the Company 26 April 2007 5 years Internet Operation License Type II 8 September 2007 1 year Internet Operation License Type I 11 October 2007 1 year Telecom Operation License Type I 20 December 2007 15 years Telecom Operation License Type III Licenses of Subsidiary 29 June 2007 1 year Internet Operation License Type I According to the conditions specified by NTC, if the authorised licensee is not in significant violation of the conditions specified in the license, NTC will consider renewing the license as normal procedure. Certain equipment that the Company has been using is equipment for which the title has been transferred to CAT under a concession contract which expired on 15 April 2007. The Company is currently in the process of purchasing these assets from CAT for the provision of internet services. The book value of these assets are presented in Note 11. 102 CS LOXINFO


On 27 April 2007, the Company acquired 120,000 ordinary shares of Watta Classified Company Limited (“Watta”) at Baht 733.34 per share, equivalent to 60% of the share capital of Watta. As a result, Watta and its subsidiaries changed status to be the Company’s subsidiaries from the date on which control was transferred to the Company (Note 25). As at 31 December 2007, the Group employs 1,400 people (2006: 997 people). These consolidated and company financial statements were approved for issue by the Board of Directors on 20 February 2008. New Accounting Standards and Amendments to Accounting Standards with the effective date in 2008 The following new accounting standards and amendments to accounting standards are revised and are mandatory for accounting periods beginning on or after 1 January 2008. Amendments to Accounting Standards TAS No. 25 “Cash Flow Statements” TAS No. 29 “Leases” TAS No. 31 “Inventory” TAS No. 33 “Borrowing Costs” TAS No. 35 “Presentation of Financial Statements” TAS No. 39 “Accounting Policies, Changes in Accounting Estimates and Errors” TAS No. 41 “Interim Financial Reporting” TAS No. 43 “Business Combinations” TAS No. 49 “Construction Contracts” New Accounting Standards TAS No. 51 “Intangible Assets” The Group will apply these standards and amendments from 1 January 2008. However, the management determines that the application of these standards will not have significant impact on the consolidated and company financial statements as of 31 December 2007 being presented, except the revised TAS 35 “Presentation of Financial Statements” which requires the additional disclosures on critical judgement and estimates made by the management and the revised TAS 43 “Business Combinations” which requires intangible assets with indefinite useful life will no longer be amortised but be tested for impairment annually. 2 Accounting policies

The principal accounting policies adopted in the preparation of these consolidated and company financial statements are set out below:- 2.1 Basis of preparation The consolidated and company financial statements have been prepared in accordance with Thai generally accepted accounting principles under the Accounting Act B.E. 2543, being those Thai Accounting Standards issued under the Accounting Profession Act B.E. 2547, and the financial reporting requirements of the Securities and Exchange Commission under the Securities and Exchange Act B.E. 2535. The accounting principles applied may differ from generally accepted accounting principles adopted in 103 CS LOXINFO


other countries and jurisdictions. The accompanying consolidated and company financial statements are therefore not intended to present the financial position and results of operations and cash flows in accordance with jurisdictions other than Thailand. Consequently, these consolidated and company financial statements are only addressed to those who are informed about Thai generally accepted accounting principles and practices. The consolidated and company financial statements have been prepared under the historical cost convention. The preparation of financial statements in conformity with Thai generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the amounts of revenues and expenses in the reported years. Although these estimates are based on management’s best knowledge of current events and actions, actual results may differ from those estimates. Where necessary, comparative figures have been adjusted to conform with changes in presentation in the current year. An English version of the consolidated and company financial statements has been prepared from the statutory financial statements that are in the Thai language. In the event of a conflict or a difference in interpretation between the two languages, the Thai language statutory financial statements shall prevail. 2.2 Group accounting - investment in subsidiaries, associates and joint venture • Subsidiary undertakings Subsidiaries are all entities over which the Group has the power to govern the financial and operating policies generally accompanying a shareholding of more than one half of the voting rights. Subsidiaries are consolidated from the date on which control is transferred to the Group and are no longer consolidated from the date that control ceases. The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group. The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The excess of the cost of acquisition over the fair value of the Group’s share of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised as negative goodwill. See Note 2.11 for the accounting policy on goodwill. Intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated; unrealised losses are also eliminated unless costs cannot be recovered. Where necessary, accounting policies of subsidiaries have been changed to ensure consistency with the policies adopted by the Company. In the Company’s separate financial statements investments in subsidiaries are reported using the cost method of accounting. A list of the Group’s principal subsidiaries is set out in Note 8 • Associated undertakings Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are initially recognised at cost. In the consolidated financial statements are accounted for using the equity method and using cost method in the company financial statements. The Company’s investment in associates includes goodwill identified on acquisition, net of any accumulated amortisation cost. The Company’s share of the postacquisition profits or losses of associates is recognised in the income statement. The cumulative postacquisition movements are adjusted against the cost of the investment. Unrealised gains or losses on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the 104 CS LOXINFO


associates; unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. The Group’s investment in associates includes goodwill (net of accumulated amortisation of goodwill) on acquisition. When the Group’s share of losses in an associate equals or exceeds its interest in the associate, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate. A list of the Group’s principal associates is set out in Note 8 2.3 Related parties Enterprises and individuals that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with, the Company, including holding companies, subsidiaries and fellow subsidiaries, are related parties of the Company. Associates and individuals owning, directly or indirectly, an interest in the voting power of the Company that gives them significant influence over the enterprise, key management personnel, including directors and officers of the Company and close members of the family of these individuals and companies associated with these individuals also constitute related parties. In considering each possible related party relationship, attention is directed to the substance of the relationship, and not merely the legal form. 2.4 Foreign currency translation Items included in the financial statements of each entity in the Group are measured in Thai Baht. The consolidated and company financial statements are presented in Thai Baht. Transactions denominated in foreign currencies are translated into Thai Baht at the rate of exchange prevailing on the transaction dates. Monetary assets and liabilities at the balance sheet date denominated in foreign currencies are translated into Thai Baht at the rate of exchange prevailing at the balance sheet date. Gains and losses resulting from the settlement of foreign currency transactions and from the translation of monetary assets and liabilities denominated in foreign currencies are recognised in the income statements. 2.5 Cash and cash equivalents Cash and cash equivalents are carried in the balance sheet at cost. Cash and cash equivalents comprise cash on hand and deposits held at banks, and other short-term highly liquid investments with original maturities of three months or less from the acquisition date. 2.6 Trade accounts receivable Trade accounts receivable are carried at the original invoice amount and subsequently measured at the remaining amount less allowance for doubtful receivables based on a review of all outstanding amounts at the year end. The amount of the allowance is the difference between the carrying amount of the receivable and the amount expected to be collectible. Bad debts are written off during the year in which they are identified and recognised in the income statement as selling and administrative expenses. 2.7 Inventories Inventories are stated at the lower of cost or net realisable value. Cost is determined using the FIFO method. The cost of purchase comprises both the purchase price and the costs directly attributable to the acquisition of the inventory, such as taxes and transportation charges, less all attributable discounts and rebates. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads, but excludes borrowing costs. Net realisable value is the estimate of the selling price in the ordinary course of business, less the costs of completion and selling expenses. Allowance is made, where necessary, for obsolete, slow-moving and defective inventories. 105 CS LOXINFO


2.8 Investments Investments with fixed maturity that management has the intention and ability to hold to maturity are classified as held-to-maturity and are included as non-current assets, except for those with maturity within 12 months from the balance sheet date, which are classified as short-term investment in under current assets. A test for impairment, the difference between the net disposal proceeds and the carrying amount is charged or credited to the income statements. On disposal of an investment, the difference between the net disposal proceeds and the carrying amount is charged or credited to the income statements. 2.9 Property and equipment All property and equipment is initially recorded at cost and subsequently shown at historical cost, less accumulated depreciation. Depreciation is calculated using the straight-line method to write off the cost of each asset over its estimated useful life as follows:- Leasehold improvements 5 years Computer equipment 3 - 10 years Furniture and fixtures 5 years Office equipment 5 years Motor vehicles 5 years Printing equipment 5 years Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount. The estimated recoverable amount is the higher of the anticipated, discounted cash flows from the continuing use of the asset and the amount obtainable from the sale of the asset, less any cost of disposal. Gains and losses on disposal of property and equipment are determined by reference to their carrying amount and are taken into account in determining operating profit. Repairs and maintenance expenses are charged to the income statements during the financial year in which they are incurred. The cost of major renovations is included in the carrying amount of the asset when it is probable that future economic benefits in excess of the originally assessed standard of performance of the existing asset will flow to the Group. Major renovations are depreciated over the remaining useful life of the related assets. 2.10 Equipment under concession agreements Equipment under concession agreements represents, Internet networks, servers, fiber optic networks and other operating equipment, which has been transferred to CAT Telecom Public Company Limited under concession agreements. Concession assets are carried at the historical cost less accumulated amortisation. They are amortised using the straight-line method over the shorter of the estimated useful lives of these assets, ranging from five to ten years, or the remaining concession period. Concession assets are not revalued. The carrying amount of concession assets is reviewed annually and adjusted for impairment where it is considered necessary. 2.11 Intangible assets • Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of identifiable assets and liabilities of the acquired subsidiary, associate or joint venture undertaking at the date of acquisition. Goodwill on acquisitions of subsidiaries and joint ventures is reported in the consolidated balance sheet as goodwill. Goodwill on acquisitions of associates is included in investments - equity method in the 106 CS LOXINFO


consolidated financial statements. Goodwill is amortised using the straight-line method over its estimated useful life. Management determines the estimated useful life of goodwill based on its evaluation of the respective companies at the time of the acquisition, considering factors such as existing market share, potential growth and other factors inherent in the acquired companies. Goodwill arising on acquisitions of the Group is amortised over a period of 4 - 12 years. Negative goodwill represents the excess of the fair value of the Group’s share of the net assets acquired over the cost of acquisition. Negative goodwill is presented under the same balance sheet classifications as goodwill. Any remaining negative goodwill, not exceeding the fair values of the non-monetary assets acquired, is recognised in the statement of income over the remaining weighted average useful life of those assets; negative goodwill in excess of the fair values of those assets is recognised in the statement of income immediately. Negative goodwill arising on acquisitions of the Group is recognised over a period of two years. • Intangible assets - other Expenditure on purchased computer software, Internet equipment provided to customers in connection with services obtained from the Company and the right to publish books is capitalised and amortised using the straight-line method over its useful life which is estimated by management, at five to ten years for purchased computer software and, the period of each service agreement for Internet equipment. The right to publish books is amortised using the straight-line method over its estimated useful life, which management has determined to be three years. Intangible assets are not revalued. The carrying amount of each intangible asset is reviewed annually and adjusted for impairment where it is considered necessary. 2.12 Deferred tax The Group and the Company recognised deferred income tax in full, using the liability method, on temporary differences arising from differences between the tax base of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. Deferred income tax is provided on temporary differences arising from investments in subsidiaries, associates and joint ventures, except where the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. The tax rate at the balance sheet date was used to calculate the deferred income tax. 2.13 Employee benefits The Group operates a provident fund, which is a defined contribution plan, the assets of which are held in a separate trust fund. The provident fund is funded by payments from employees and by the relevant Group companies. Contributions to the provident fund are charged to the statement of income in the year to which they relate. However, the Group does not provide for employment benefits payable to employees under the Thai Labour Law. Warrants granted to directors and employees of the Group are recognised when they are exercised. 2.14 Provisions Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. Where the Group expects an 107 CS LOXINFO


expenditure item to be reimbursed, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expenses. 2.15 Revenue recognition Sales are recognised upon delivery of products and customer acceptance. Revenues from rendering services and sales are net of value added tax and discounts. Revenue from sales of newspapers and publishing is net of value added tax, discounts and the estimation of goods returned. Revenues from rendering internet services and services related to the satellite business are recognised when such services are rendered to customers. All costs of services incurred during the relevant periods are treated as period costs. Revenue from the sale of advertising space in telephone directories is recognised on a monthly basis over the useful life of the telephone directory. Interest income is recognised as it accrues, unless collectability is in doubt. Dividend income is recognised when the Group’s right to receive payment is established. Advances from customers will be released to income when the services are provided. 2.16 Dividends payments Dividends and interim dividends are recorded in the consolidated and company financial statements in the period in which they are approved by the shareholders and the Board of Directors, respectively. 2.17 Financial instruments Financial instruments carried on the balance sheet include cash and cash equivalents, trade accounts receivable, amounts due from related parties, other investment, deposits, trade accounts payable, other accounts payable, amount due to related parties, obligations under finance lease and borrowings. The particular recognition methods adopted are disclosed in the individual policy statements associated with each item. 2.18 Foreign currency forward contracts Foreign currency forward contracts protect the Group from movements in exchange rates. Forward contract transactions are recorded as forward contracts receivable or forward contracts payable on inception, and translated at the year-end rate. Unrealised gains and losses on translation are recognised in the income statements. Premiums or discounts are amortised in the income statements on a straight-line basis over the contract years. 2.19 Segment reporting The segment reporting has been prepared based on the Group’s method of internal reporting, which disaggregates its business by service or product. 2.20 Leases - where the Group is the lessee Leases of assets where the Group assumes substantially all the benefits and risks of ownership are classified as finance leases. Finance leases are capitalised at the inception of the lease at the lower of the fair value of the leased assets or the present value of the minimum lease payments. Each lease payment is 108 CS LOXINFO


allocated to the principal and to the finance charges so as to achieve a constant rate on the finance balance outstanding. The corresponding rental obligations, net of finance charges, are included in other payables. The interest element of the finance charge is charged to the income statements over the lease period. The property and equipment acquired under finance leasing contracts are depreciated over the shorter of the estimated useful life of the assets or the lease term. However, if there is reasonable certainty that the lessee will obtain ownership by the end of the lease term, depreciation is calculated over the estimated useful life of the assets. Leases not transferring a significant portion of the risks and rewards of ownership to the lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the statement of income on a straight-line basis over the period of the lease. When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is recognised as an expense in the period in which termination takes place. 2.21 Leases - where the Group is the lessor Assets leased out under operating leases are included in property and equipment in the balance sheet. They are depreciated over their expected useful lives on a basis consistent with similar fixed assets. Rental income is recognised on a straight-line basis over the lease term. 2.22 Impairment of assets Property and equipment and other non-financial assets, including goodwill and intangible assets, are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the carrying amount of the asset exceeds its recoverable amount, which is the higher of an asset’s net selling price and value in use. For the purpose of assessing impairment, assets are grouped at the lowest level for which there are separately identifiable cash flows (cash-generating units). Non-financial assets other than goodwill that have suffered an impairment are reviewed for possible reversal of the impairment at each reporting date. 2.23 Treasury share Where the Company or its subsidiaries purchase the Company’s equity share capital from the shareholders, the consideration paid is recognised as treasury share and is presented as a reduction from total shareholders’ equity until shares are resold or cancelled. Where such shares are subsequently resold or reissued, any consideration received-net of related taxes on sales is presented under the shareholders’ equity.

3 Change in accounting policy

Change in accounting policy for investments in subsidiaries and associates, presented in the company financial statements. The announcement of Federation of Accounting Professions on 2 May 2007 relating to amendments to TAS 44 “Consolidated and Separate Financial Statements”, TAS 45 “Investments in Associates” and TAS 46 “Interests in Joint Ventures” requires the change from the equity method to cost method of accounting for investments in subsidiaries, associates and interests in joint ventures, presented in the company financial

109 CS LOXINFO


statements. Under the cost method, income from investment will be recorded when dividends are declared. The notification is mandatory from 1 January 2007. The change in the accounting policy has an impact to the company financial statements only and does not have an impact to the consolidated financial statements. The Group has adopted the cost method commencing from 1 January 2007 by applying retrospective adjustments. The effects of the changes on the Company financial statements for the year ended 31 December 2006 are as follows:- Company Baht Balance sheet as at 31 December 2006 Decrease in investments in subsidiaries and an associate - equity method 1,597,615,051 Increase in investments in subsidiaries and an associate - cost method 957,634,703 Shareholders’ equity Decrease in beginning balance of retained earnings 617,295,029 Decrease in closing balance of retained earnings 639,980,348 Statement of income for the year ended 31 December 2006 Increase in dividend receipt from a subsidiary 80,693,310 Decrease in share of net results from investments - equity method 184,914,763 Decrease in administrative and selling expenses (Goodwill) 81,536,134 Decrease in net profit 22,685,319 Decrease in basic earnings per share 0.04 Decrease in diluted earnings per share 0.04

4 Cash and cash equivalents

Consolidated Company 2007 2006 2007 2006 Baht Baht Baht Baht Cash on hand 3,037,722 201,303 71,113 125,139 Current accounts and savings deposits 317,845,006 338,784,405 162,063,202 137,569,379 held at call with banks 17,138 16,485 - - Fixed deposits 392,000,000 440,011,704 60,000,000 40,011,704 Promissory notes Total 712,899,866 779,013,897 222,134,315 177,706,222 The effective interest rates of deposits held with banks and promissory notes were 0.125% - 3.15 % per annum (2006: 0.125% - 5.250% per annum). 110 CS LOXINFO


5 Trade accounts receivable and accrued income, net

Company Consolidated 2007 2006 2007 2006 Baht Baht Baht Baht Trade accounts receivable: - Third parties 347,403,287 318,600,552 131,748,746 107,087,227 - Related parties (Note 33) 38,706,893 67,148,404 18,335,542 40,256,944 Total trade accounts receivable 386,110,180 385,748,956 150,084,288 147,344,171 Accrued income: - Third parties 8,259,805 12,155,397 3,091,528 3,879,787 - Related parties (Note 33) 5,990,069 1,354,261 5,990,069 1,354,261 Total accrued income 14,249,874 13,509,658 9,081,597 5,234,048 Total trade accounts receivable and accrued income 400,360,054 399,258,614 159,165,885 152,578,219 Less Allowance for doubtful accounts (59,951,224) (75,805,525) (7,139,129) (8,500,017) Total trade accounts receivable and accrued income, net 340,408,830 323,453,089 152,026,756 144,078,202 Outstanding trade accounts receivable as at 31 December 2007 and 2006 can be analysed by aging as follows:-

Consolidated 2007 2006 Baht Baht

Company 2007 Baht

2006 Baht Current 135,947,015 81,816,181 80,163,290 53,200,735 Overdue less than 3 months 62,346,311 90,145,758 54,040,548 61,932,565 Overdue 3-6 months 28,221,789 34,808,485 3,479,114 7,678,213 Overdue 6-12 months 92,386,381 105,307,360 3,515,645 10,853,708 Overdue more than 12 months 67,208,684 73,671,172 8,885,691 13,678,950 386,110,180 385,748,956 150,084,288 147,344,171 Less Allowance for doubtful accounts (59,951,224) (75,805,525) (7,139,129) (8,500,017) Trade accounts receivable, net 326,158,956 309,943,431 142,945,159 138,844,154 As at 31 December 2007, the Group had allowances for doubtful accounts of Baht 59.9 million (2006: Baht 75.8 million) and the Company’s allowances for doubtful accounts of Baht 7.1 million (2006: Baht 8.5 million). Based on the collection history, management believes that the allowances for doubtful account are sufficient.

111 CS LOXINFO


6 Inventories, net

Raw material Work in process Finished goods Supplies Less Allowance for obsolete inventories Total inventories, net

Consolidated 2007 2006 Baht Baht 44,801,216 54,497,487 43,728,117 53,889,885 9,144,579 6,926,851 462,800 471,938 98,136,712 115,786,161 (151,694) (2,443,972) 97,985,018 113,342,189

Company 2007 Baht 118,134 1,659,653 6,443,460 462,800 8,684,047 (57,643) 8,626,404

2006 Baht

120,765 2,205,130 6,732,940 471,938 9,530,773 (2,349,921) 7,180,852

7 Other current assets

Consolidated 2007 2006 Baht Baht Prepaid expenses 38,948,742 29,535,973 Value added tax refundable 3,381,140 3,896,423 Interest receivable 824,050 3,553,172 Others 13,607,295 5,387,019 Total other current assets 56,761,227 42,372,587

Company 2007 Baht 14,886,012 - 110,666 3,493,385 18,490,063

2006 Baht

6,553,518 - 215,386 2,618,150 9,387,054

8 Investments in subsidiaries and an associate

a) Investments in subsidiaries and an associate as at31 December 2007 and 2006 are as follows:-

Consolidated

Company

31 December 31 December 31 December 31 December

2007 2006 2007 2006 Restated Baht ’000 Baht ’000 Baht ’000 Baht ’000 Investment recorded as cost method Investment in subsidiaries - - 942,901 957,583 Investment in an associate - - - 52 Total investment recorded as cost method - - 942,901 957,635 Investment recorded as equity method Investment in an associate - 3,693 - - Total investอment recorded as equity method - 3,693 - - 112 CS LOXINFO


b) Movements in investments in subsidiaries and an associate for the years ended 31 December 2007 and 2006 are as follows

Consolidated Company (Cost method) (Cost method) For the years ended 31 December 2007 2006 2007 2006 Restated Baht ’000 Baht ’000 Baht ’000 Baht ’000 Opening net book value - As previous reported - - - - - Adjustment from change in accounting policy from equity method to cost method (Note 3) - - 957,635 921,671 Opening net book value - restated - - 957,635 921,671 Acquisition of investment in subsidiaries (Note 25) - - 97,945 35,964 Reversal of provision from acquisition of investment in subsidiary (Note 18) - - (112,627) - Investment returned from liquidation of an associate - - (52) - Closing net book value - - 942,901 957,635 Consolidated Company (Equity method) (Equity method) For the years ended 31 December 2007 2006 2007 2006 Restated Baht ’000 Baht ’000 Baht ’000 Baht ’000 Opening net book value - As previous reported 3,693 3,674 - 1,597,615 - Adjustment from change in accounting policy from equity method to cost method (Note 3) - - - (1,597,615) Opening net book value - restated 3,693 3,674 - - Share of net results from investments 40 19 - - Investment returned from liquidation of an associate (3,733) - - - Closing net book value - 3,693 - - 113 CS LOXINFO


b) Movements in investments in subsidiaries and an associate for the years ended 31 December 2007 and 2006 are as follows (Cont’d):

Loxley Information Services Company Limited On 2 February 2007, the Company acquired 480,000 ordinary shares and 3,600 ordinary shares in Loxley Information Services Company Limited (“Loxserv”) from CAT Telecom Public Company Limited and its employees respectively at Baht 12.90 per share, representing 1.86% of the paid-up share capital, at a total price of Baht 6.2 million. On 10 May 2007, the Company acquired 991,593 ordinary shares in Loxserv from Point Asia Dot Com (Thailand) Company Limited at Baht 2.02 per share (the price is in line with the condition stated in shares purchase agreement entered in 2002 between Point Asia Dot Com (Thailand) Company Limited and the Company) totalling Baht 2 million or equivalent to 3.81% of the paid-up share capital of Loxserv. As a result of this acquisition, the Company owns 99.86% of Loxserv. Negative goodwill recognised from the acquisition of these ordinary shares in Loxserv of Baht 12.7 million is amortised using the straight-line method over its estimated useful life of four years. This estimated useful life is consistent with the amortisation period applicable to the remaining goodwill of Loxserv carried forward from prior periods (Note 25 (b)). Watta Classified Company Limited On 27 April 2007, the Company acquired 120,000 ordinary shares in Watta Classified Company Limited (“Watta”) at Baht 733.34 per share, equivalent to 60% of the share capital of Watta, at a total price of approximately Baht 89.7 million. As a result, Watta and its subsidiaries changed their status to become the Company’s subsidiaries from the date on which control was transferred to the Company (Note 25 (a)). AD Venture Company Limited On 27 April 2007, the extraordinary shareholders’ meeting of AD Venture Company Limited No. 1/2550 passed a resolution to approve a reduction in the registered share capital of AD Venture Company Limited by Baht 378.03 million (from Baht 550 million to Baht 171.97 million) by decreasing 37.80 million ordinary shares to offset against the remaining deficits. The reduction in the registered share capital was registered with the Ministry of Commerce on 29 August 2007. The change does not have an impact on the percentage of shareholding in this subsidiary. Shineedotcom Company Limited On 27 April 2007, the extraordinary shareholders’ meeting of Shineedotcom Company No. 1/2550 passed a resolution to approve a reduction in the registered share capital of Shineedotcom Company Limited by Baht 110 million (from Baht 190 million to Baht 80 million) by decreasing 11 million ordinary shares from each shareholder at the proportion of their shareholding to offset against the remaining deficits. The reduction in the registered share capital was registered with the Ministry of Commerce on 29 August 2007. The change does not have an impact on the percentage of shareholding in this subsidiary. Teleinfo Media Public Company Limited On 25 May 2007, at the annual ordinary shareholders’ meeting of Teleinfo Media Public Company Limited, the shareholders passed a resolution to approve a dividend payment of Baht 17.29 per share totalling Baht 300 million. The dividend was paid on 18 June 2007. At the Board of Directors meeting of Teleinfo Media Public Company Limited on 24 August 2007, a resolution was passed to approve the interim dividend payment of Baht 1.73 per share totalling Baht 30 million. The Company paid the dividend on 20 September 2007. At the Board of Directors meeting of Teleinfo Media Public Company Limited on 23 November 2007, a resolution was passed to approve the interim dividend payment of Baht 1.73 per share totalling Baht 30 million. The Company paid the dividend on 21 December 2007. CS Loxinfo Solutions Company Limited On 15 June 2007, the extraordinary shareholders’ meeting No. 2/2007 of CS Loxinfo Solutions Company Limited passed a resolution to approve the liquidation report and on 19 June 2007, CS Loxinfo Solutions Company Limited obtained approval from the Ministry of Commerce for the liquidation. Upon the completion of the liquidation, CS Loxinfo Solutions Company Limited had remaining cash of Baht 8.06 million, which would be returned to its shareholders at Baht 161.13 per share. On 31 July 2007, the Company received the return on investment of Baht 3.73 million. Comchat Company Limited, Decode Company Limited and Idea Maker Company Limited On 12 November 2007 and on 30 November 2007, the extraordinary shareholders’ meeting of Comchat Company Limited, Decode Company Limited and Idea Maker Company Limited, passed resolutions to approve their liquidation. These companies were registered for liquidation with the Ministry of Commerce on 30 November 2007.

114 CS LOXINFO


c) The details of investments in subsidiaries and an associate can be summarised as follows:- % of holding 31 December 31 December Name Business Country Currency 2007 2006 Subsidiaries Loxley Information Services Providing Internet Company Limited services Thailand Baht 99.86 94.19 Teleinfo Media Public Company Limited Publishing telephone directories and advertising Thailand Baht 100.00 100.00 AD Venture Company Limited Holding company in mobile contents business Thailand Baht 100.00 100.00 Watta Classified Company Limited Conducting classified and printing directories businesses Thailand Baht 60.00 - Associate CS Loxinfo Solutions Company Limited Liquidation Thailand Baht - 44.99 Subsidiaries of AD Venture Company Limited Group Shineedotcom Providing mobile contents Thailand Baht 70.00 70.00 Company Limited Hunsa Dot Com Company Limited Banner advertising Thailand Baht 100.00 100.00 Sodamag Corp Company Limited Banner advertising Thailand Baht 100.00 100.00 Subsidiaries of Watta Comchat Company Limited In process of liquidation Thailand Baht 99.94 - Decode Company Limited In process of liquidation Thailand Baht 99.93 - Idea Maker Company Limited In process of liquidation Thailand Baht 99.97 -

115 CS LOXINFO


d) Carrying values of investments in subsidiaries and an associate are as follows:- Consolidated - 31 December 2006 (Baht ’000) (Equity method) Paid-up % of capital Investment At cost Equity Associate: CS Loxinfo Solutions Company Limited 5,000 44.99 52 3,693

Subsidiaries: Loxley Information Services Company Limited Teleinfo Media Public Company Limited AD Venture Company Limited Watta Classified Company Limited Total

Subsidiaries: Loxley Information Services Company Limited Teleinfo Media Public Company Limited AD Venture Company Limited Total Associate: CS Loxinfo Solutions Company Limited Total

Company - 31 December 2007 (Baht ’000) (Cost method) Paid-up % of capital Investment At cost 260,100 173,534 171,970 20,000

99.86 100.00 100.00 60.00

254,533 562,695 35,965 89,708 942,901

Company - 31 December 2006 (Baht ’000) (Cost method) Restated Paid-up % of capital Investment At cost 260,100 173,534 550,000

94.19 100.00 100.00

246,297 675,322 35,964 957,583

5,000

44.99

52 957,635

116 CS LOXINFO


9 Long-term investment - other

Time deposits with bank Government bonds Total Long-term investment - other

Consolidated 2007 2006 Baht Baht 1,706,872 3,000,000 4,706,872

2,550,971 - 2,550,971

Company 2007 Baht - - -

2006 Baht - - -

The weighted average effective interest rate of time deposits and government bonds from the bank was 2.5% and 5.5% per annum (2006: 1.25% per annum). As at 31 December 2007, time deposits of Baht 1.71 million (2006: Baht 2.55 million) has been pledged as collateral in respect of bank guarantees in respect of business. 10 Property, plant and equipment, net

Consolidated (Baht) Furniture, Land and fixtures leasehold Computer and office Printing Assets under improvement equipment equipment equipment installation Total As at 31 December 2006 Cost 27,456,718 981,659,629 330,605,080 179,725,721 4,682,533 1,524,129,681 Less Accumulated depreciation (12,012,563) (784,788,022) (264,088,521) (128,295,138) - (1,189,184,244) Net book value 15,444,155 196,871,607 66,516,559 51,430,583 4,682,533 334,945,437 Transactions during the year ended 31 December 2007 Opening net book value 15,444,155 196,871,607 66,516,559 51,430,583 4,682,533 334,945,437 Additions 6,323,370 93,426,537 18,367,032 5,887,405 3,355,735 127,360,079 Increase from acquisition of investment (Note 25) 3,760,514 - 10,106,739 - - 13,867,253 Write-offs, net - (151,417) (65,867) - - (217,284) Disposals, net - (227,307) (858,557) - - (1,085,864) Assets for sales (205,946) - (1,339,520) - - (1,545,466) Transfers, net - (6,938,273) 496,731 2,483,357 (6,810,149) (10,768,334) Depreciation (5,437,697) (74,399,411) (41,143,866) (19,481,710) - (140,462,684) Closing net book value 19,884,396 208,581,736 52,079,251 40,319,635 1,228,119 322,093,137 As at 31 December 2007 Cost 37,280,087 1,048,139,354 349,885,901 188,096,483 1,228,119 1,624,629,944 Less Accumulated depreciation (17,395,691) (839,557,618) (297,806,650) (147,776,848) - (1,302,536,807) Net book value 19,884,396 208,581,736 52,079,251 40,319,635 1,228,119 322,093,137

117 CS LOXINFO


Company (Baht)

Furniture, Land and fixtures leasehold Computer and office Assets under improvement equipment equipment installation Total As at 31 December 2006 Cost 1,902,881 659,590,778 109,643,013 3,543,289 774,679,961 Less Accumulated depreciation (1,902,869) (501,514,292) (71,422,950) - (574,840,111) Net book value 12 158,076,486 38,220,063 3,543,289 199,839,850 Transactions during the year ended 31 December 2007 Opening net book value 12 158,076,486 38,220,063 3,543,289 199,839,850 Additions 3,540,595 46,331,355 10,255,223 801,356 60,928,529 Write-offs, net - (151,417) (34,305) - (185,722) Disposals, net - (94,467) (220,521) - (314,988) Transfers, net - (6,938,273) 496,731 (4,326,792) (10,768,334) Depreciation (163,269) (53,571,085) (22,420,978) - (76,155,332) Closing net book value 3,377,338 143,652,599 26,296,213 17,853 173,344,003 As at 31 December 2007 Cost 5,443,476 688,833,177 113,960,294 17,853 808,254,800 Less Accumulated depreciation (2,066,138) (545,180,578) (87,664,081) - (634,910,797) Net book value 3,377,338 143,652,599 26,296,213 17,853 173,344,003

The leased assets included above, where the Group is a lessee under a finance lease are vehicles, which as follows:-

Cost - capitalised finance leased assets Accumulated depreciation Net book value

Consolidated 2007 Baht ’000 4,629 (1,714) 2,915

2006 Baht ’000 - - -

As at 31 December 2007, the book value of fully depreciated equipment, which is still in use, is as follows:- Consolidated Company Baht ’000 Baht ’000 As at 31 December 2006 926,891 379,804 1,081,981 620,303 As at 31 December 2007

118 CS LOXINFO


11 Equipment under concession agreements, net

Consolidated Baht

Company Baht

Consolidated Baht

Company Baht

95,135,900 (30,540,119) (16,802,435) 47,793,346

27,037,123 (9,948,633) - 17,088,490

47,793,346 7,002,046 (1,906,852) (3,629,008) (15,432,697) 33,826,835

17,088,490 1,578,817 - (3,629,008) (5,989,460) 9,048,839

90,868,213 (40,238,943) (16,802,435) 33,826,835

20,346,205 (11,297,366) - 9,048,839

As at 31 December 2006 Cost 201,293,608 201,293,608 Less Accumulated amortisation (188,021,938) (188,021,938) Net book value 13,271,670 13,271,670 Transactions during the year ended 31 December 2007 Opening net book value 13,271,670 13,271,670 Transfers, net 10,768,334 10,768,334 Amortisation charges (21,260,713) (21,260,713) Closing net book value 2,779,291 2,779,291 As at 31 December 2007 Cost 212,061,814 212,061,814 Less Accumulated amortisation (209,282,523) (209,282,523) Net book value 2,779,291 2,779,291 12 Intangible assets, net

As at 31 December 2006 Cost Less Accumulated amortisation Accumulated impairment loss Net book value Transactions during the year ended 31 December 2007 Opening net book value Additions Disposals, net Write-offs, net Amortisation charges Closing net book value As at 31 December 2007 Cost Less Accumulated amortisation Accumulated impairment loss Net book value

119 CS LOXINFO


As at 31 December 2007, an impairment loss in respect of intangible assets amounting to Baht 16.8 million in the subsidiary has been recognised because the anticipated net discounted cash flow from the continuing use of the asset is less than the carrying amount of this asset. The subsidiary has used the discounted rate of 12% per annum to calculate the net future cash flow.

13 Goodwill

Consolidated (Baht) Goodwill Negative goodwill

As at 31 December 2006 Cost 941,331,224 Less Recognition/ accumulated amortisation (194,316,153) Net book value 747,015,071 Transactions during the year ended 31 December 2007 Opening net book value 747,015,071 Increase from acquisition of investment (12,651,476) - Negative goodwill from Loxserv (Note 25) 80,899,677 - Goodwill from Watta (Note 25) Negative goodwill from subsidiaries in - Watta group (Note 25) Reversal of provision from acquisition (97,269,142) of investment, net (Note 18) Recognition/ amortisation charges - net (77,295,444) Closing net book value 640,698,686 As at 31 December 2007 Cost 912,310,283 Less Recognition/ accumulated amortisation (271,611,597) Net book value 640,698,686

120 CS LOXINFO

Total

(10,769,595) 2,912,430 (7,857,165)

930,561,629 (191,403,723) 739,157,906

(7,857,165)

739,157,906

- -

(12,651,476) 80,899,677

(2,455,663)

(2,455,663)

- 8,643,515 (1,669,313)

(97,269,142) (68,651,929) 639,029,373

(13,225,258) 11,555,945 (1,669,313)

899,085,025 (260,055,652) 639,029,373


14 Deferred tax assets

Deferred income taxes are calculated in full on temporary differences based on the liability method using a principal tax rate of 25% for the company financial statements (2006: 25%) and 25% - 30% for the consolidated financial statements (2006: 25% - 30%). Deferred tax assets for tax loss carried forward are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. The subsidiaries have tax loss carried forward to offset future taxable income, which is not recognised in the consolidated financial statements as follows:- Expired year Million Baht 2007 33 2008 21 2009 39 2010 54 2011 221 2012 3 Total 371 The movement in deferred tax assets for the year ended 31 December 2007 is as follows:- Consolidated (Baht) For the year ended 31 December 2007

Unearned Recognition income of income Allowance for Allowance for and advances and cost Deferred tax Loss carried doubtful obsolete received from of telephone assets forward accounts inventories customers books Depreciation Total Opening balance 18,107,922 21,427,742 615,695 22,954,615 12,685,620 8,241,800 84,033,394 Increase from acquisition of investment - 2,915,164 - 1,380,284 - - 4,295,448 Charged to statement of income (14,143,053) (7,711,569) (573,070) (1,870,715) 4,852,421 1,271,792 (18,174,194) Closing balance 3,964,869 16,631,337 42,625 22,464,184 17,538,041 9,513,592 70,154,648

Consolidated (Baht) For the year ended 31 December 2006

Unearned Recognition income of income Allowance for Allowance for and advances and cost Deferred tax Loss carried doubtful obsolete received from of telephone assets forward accounts inventories customers books Depreciation Total Opening balance 114,566,748 28,774,135 353,983 34,545,203 12,298,167 6,435,523 196,973,759 Charged to statement of income (96,458,826) (7,346,393) 261,712 (11,590,588) 387,453 1,806,277 (112,940,365) Closing balance 18,107,922 21,427,742 615,695 22,954,615 12,685,620 8,241,800 84,033,394

121 CS LOXINFO


Company (Baht) For the year ended 31 December 2007 Unearned Allowance income for Allowance and advances doubtful for obsolete received from Deferred tax assets accounts inventories customers Depreciation Total Opening balance 2,125,005 587,480 22,874,260 3,842,407 29,429,152 Charged to statement of income (340,222) (573,070) (1,084,728) 461,089 (1,536,931) Closing balance 1,784,783 14,410 21,789,532 4,303,496 27,892,221 Company (Baht) For the year ended 31 December 2006

Unearned income Loss Allowance Allowance and advances carried for doubtful for obsolete received from Deferred tax assets forward accounts inventories customers Depreciation Total Opening balance 30,305,230 7,283,744 325,768 33,219,791 3,381,318 74,515,851 Charged to statement of income (30,305,230) (5,158,739) 261,712 (10,345,531) 461,089 (45,086,699) Closing balance - 2,125,005 587,480 22,874,260 3,842,407 29,429,152 Deferred income tax assets and liabilities are offset for the purpose of financial statement presentation when there is a legally enforceable right to offset the income taxes levied by the same taxation authority.

15 Credit facilities

The available credit facilities for borrowings from banks, as at 31 December 2007 are Baht 585 million (31 December 2006: Baht 585 million). 16 Other current liabilities

Consolidated Company 2007 2006 2007 2006 Baht Baht Baht Baht Other taxes 37,354,523 9,106,749 12,311,924 6,085,465 Retention 2,034,500 3,734,500 - - Other payables 17,957,050 10,064,133 1,496,573 1,445,616 Total other current liabilities 57,346,073 22,905,382 13,808,497 7,531,081 122 CS LOXINFO


17 Obligations under finance leases

Consolidated

31 December 31 December

2007 2006 Baht Baht Not later than 1 year 849,540 - 2,656,393 - Later than 1 year but not later than 5 years Less Future finance interest expense on (245,337) - finance leases 3,260,596 - Present value of finance lease liabilities Current 717,802 - Finance leases payables Non-current 2,542,794 - Finance leases payables Total 3,260,596 - The interest rates according to contracts of obligation under finance leases were between 3.15% - 6.80% per annum. 18 Provision from acquisition of investment

On 29 June 2005, the Company acquired an additional 25.51 million ordinary and preferred shares in Teleinfo Media Public Company Limited (“TMC”) at Baht 25 per share (representing a 36.75% shareholding) from TOT Public Company Limited (“TOT”). The acquisition was subject to the following significant conditions:- • On 29 June 2005, the Company paid an amount of Baht 20 per share to purchase these shares. • The Company will pay TOT an additional Baht 5 per share if TMC achieves an aggregate total revenue from the fiscal year 2006 to 2007 of Baht 2,000 million or more. The payment is due within 30 days after TMC’s financial statements for the year ending 31 December 2007 are approved by a certified public accountant authorised by the Securities and Exchange Commission. TMC’s aggregate total revenue for the period from 1 January 2006 to 31 December 2007 was Baht 1,813 million which is below Baht 2,000 million. As a result, the Company is not required to pay the additional share price and has therefore reversed the provision from acquisition of investment that was recognised in the past. The details of provision can be shown as follows:- Consolidated Company For the years ended 31 December 2007 2006 2007 2006 Baht Baht Baht Baht Opening balance 120,765,376 115,340,077 120,765,376 115,340,077 Interest charge during the year 2,712,650 5,425,299 2,712,650 5,425,299 Reversal: Decrease in goodwill (97,269,142) - - - Reversal of interest charge (2,712,650) - (2,712,650) - Decrease in investments in subsidiaries - - (112,627,427) - Increase in other income (23,496,234) - (8,137,949) - Closing balance - 120,765,376 - 120,765,376

123 CS LOXINFO


19 Share capital and premium on share capital

Issued and paid-up share capital As at 31 December 2006 Increase during the year Offsetting the premium on share capital with deficit As at 31 December 2007

For the year ended 31 December 2007 Number of Ordinary Premium on shares shares share capital Total Shares Baht Baht Baht 625,000,000 625,000,000 992,141,435 1,617,141,435 1,899,344 1,899,344 4,026,600 5,925,944 - - (574,542,853) (574,542,853) 626,899,344 626,899,344 421,625,182 1,048,524,526

The Company’s registered share capital as at 31 December 2007 comprised 661 million ordinary shares (31 December 2006: 649 million shares) of Baht 1 each (31 December 2006: Baht 1 each). 627 million ordinary shares were fully paid-up (31 December 2006: 625 million ordinary shares). At the Board of Directors’ meeting of the Company on 22 February 2007, the Board of Directors passed a resolution to recommend to shareholders the payment of dividends for the second half of 2006. The proposed dividend was greater than 50% of the net profit after tax. As a result, the exercise ratio and exercise price of the warrants under the ESOP schemes (Grant I to Grant IV) would be affected. Hence the Company changed the exercise ratio and exercise price of the warrants as detailed below, effective from 28 March 2007 onwards. The shareholders subsequently approved such dividend payment on 23 April 2007 (Note 36).

ESOP - Grant I ESOP - Grant II ESOP - Grant III ESOP - Grant IV

Exercise ratio unit : share Former

New

1 : 1.22090 1 : 1.22090 1 : 1.19881 1 : 1.12898

1 : 1.24101 1 : 1.24101 1 : 1.21856 1 : 1.14758

124 CS LOXINFO

Exercise prices Baht/unit Former

New

7.371 7.610 5.780 3.171

7.252 7.487 5.686 3.120


At the annual ordinary shareholders meeting of the Company held on 23 April 2007, the shareholders passed a resolution to approve the offset of legal reserve of Baht 45.6 million and premium on share capital of Baht 574.5 million, totalling Baht 620.1 million with deficit. The offset is allowed under the Public Limited Companies Act section 119; which states “Where approval of the shareholder meeting has been obtained, the company may transfer the reserve fund referred to premium on share, the reserve fund referred to legal reserve or other reserves to compensate for the deficit of the company”. At the annual ordinary shareholders meeting of the Company held on 23 April 2007, the shareholders passed a resolution to approve the allocation of 8,354,400 ordinary shares, equivalent to 1.34% of the Company’s total issued and paid-up share capital as at the date the warrants allocation was approved, under an ESOP scheme (Grant V), by granting warrants to directors and employees of the Company and its subsidiary. The exercise ratio is one warrant per ordinary share. The warrants are in registered form and are non-transferable. The term of the warrants does not exceed five years from the date on which they were granted, and the warrants have no offering price. The exercise price is the weighted-average closing price of the Company’s shares traded on the Stock Exchange of Thailand during the period of 30 days prior to the annual ordinary shareholders meeting held on 23 April 2007. One-third of the allocated warrants may be exercised to purchase ordinary shares, one year from the grant date for the first exercise, and two years and three years from the grant date for the second and third exercises, respectively. On 24 May 2007, the Securities and Exchange Commission approved the Company’s ESOP scheme (Grant V). The issue and grant of these warrants on 30 May 2007 was subsequently ratified and approved by the Executive Committee of the Company on 22 June 2007. In addition, the meeting also passed a resolution to approve an increase in the Company’s registered share capital from 649,020,074 ordinary shares, at a par value of Baht 1 each to 660,849,474 ordinary shares, at a par value of Baht 1 each by increasing 11,829,400 additional ordinary shares. These additional 3,475,000 shares are to be allocated to support warrants from the change in exercise ratios under ESOP Grant I to Grant IV and the remaining 8,354,400 shares are to be allocated to support warrants issuing to its directors and employees under ESOP Grant V. The Company registered the increase in the registered share capital with the Ministry of Commerce on 28 June 2007. The details of the warrants of the Company as at 31 December 2007 are as follows:-

ESOP - Grant I ESOP - Grant II ESOP - Grant III ESOP - Grant IV ESOP - Grant V

Issued dates

14 May 2004 16 May 2005 31 May 2005 31 May 2006 30 May 2007

Before dilution Exercise Exercise ratio prices Issued units (unit : share) (Baht/unit) 3,096,300 2,213,700 8,559,100 8,354,300 8,354,400

1 : 1.24101 1 : 1.24101 1 : 1.21856 1 : 1.14758 1 : 1

7.252 7.487 5.686 3.120 3.580

125 CS LOXINFO

Exercise period

First 30 May 2004 30 May 2005 31 May 2006 31 May 2007 30 May 2008

Last 30 April 2009 30 April 2010 30 May 2010 30 May 2011 29 May 2012


Movements in the number of outstanding warrants under the ESOP scheme are as follows:- For the year ended 31 December 2007 (’000 units)

ESOP ESOP ESOP ESOP ESOP - Grant I - Grant II - Grant III - Grant IV - Grant V Employees Employees Employees Employees Employees Grand Total 3,096 2,214 8,559 8,354 - 22,223 Opening balance 8,354 8,354 Issue during the year - - - - - - - (1,655) - (1,655) Exercise during the year 3,096 2,214 8,559 6,699 8,354 28,922 Closing balance Compensation costs related to the warrants are not recognised in these financial statements for the fair value of the non-exercised warrants granted. From 30 May 2007 to 30 November 2007, the Company received cash proceeds from the issuance of 1,899,344 ordinary shares at a price of Baht 3.12 per share, being the par value of the ordinary shares of Baht 1,899,344 and share premium of Baht 4,026,600. This issuance of the ordinary shares was the exercise of 1,655,100 units of ESOP Grant IV. These shares were registered as issued and paid-up share capital with the Ministry of Commerce and the Stock Exchange of Thailand during 6 June 2007 to 7 December 2007. 20 Other income

Management fee income Interest income Refundable withholding tax Reversal of provision from acquisition of investment (Note 18) Investment returned from liquidation of an associate (Note 33) Others income Total other income

Consolidated 2007 Baht

2006 Baht

- - 21,880,447 28,642,995 - 3,717,235 23,496,234

-

Company 2007 Baht

2006 Baht

3,381,953 5,045,575 5,009,131 10,576,167 - - 8,137,949

-

- - 3,679,722 - 36,771,535 19,482,600 14,606,570 8,219,171 82,148,216 51,842,830 34,815,325 23,840,913

126 CS LOXINFO


21 Interest expenses

Related parties (Note 33) Bank borrowings Finance leases Provision from acquisition of investment (Note 18) Total interest expenses

Consolidated 2007 Baht 245,589 - 109,954 - 355,543

Company

2006 Baht

- 63 4,061 5,425,299 5,429,423

2007 Baht

2006 Baht

257,754 - - - 257,754

- 63 - 5,425,299 5,425,362

22 Operating profit before interest expense and income tax expense

The following expense,classified by nature, have been charged in arriving at the operating profit before interest expense:-

Consolidated

Company

2007 2006 2007 Baht Baht Baht 293,963,733 302,801,770 257,217,785 Operating leases rental 396,674,080 354,735,048 169,573,487 Staff costs Depreciation of property and equipment (Note 10) 140,462,684 140,125,411 76,155,332 Amortisation of equipment under 21,260,713 33,473,851 21,260,713 concession agreements (Note 11) Recognition/amortisation of goodwill - net (included in selling and administrative expenses) 68,651,929 81,536,134 - (Note 13) 15,432,697 12,732,431 5,989,460 Amortisation of intangible assets (Note 12)

127 CS LOXINFO

2006 Restated

Baht

270,533,772 164,529,502 83,297,840 29,285,024 - 4,785,858


23 Basic and diluted earnings per share

Basic earnings per share is calculated by dividing the net profit for the year attributable to ordinary shareholders by the weighted average number of ordinary shares by excluding treasury shares, which were issued and paid up during the year. For the diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all potential dilutive ordinary shares, which is the weighted average number of ordinary shares by excluding treasury shares, which were issued and paid up during the year and the weighted average number of ordinary shares which would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares. The assumed proceeds from the exercise of ESOP would be considered to have been received from the issue of shares at fair value. These represent share options where the exercise price is less than the average market price of the Company’s shares for the year ended 31 December 2007. Basic and diluted earnings per share are as follows:-

Consolidated

Company

2007 2006 2007 2006 Restated 260,995,312 212,584,558 489,602,798 212,584,558 Net profit (Baht) - As previously reported - - - (22,685,319) - Prior year adjustment (Note 3) 260,995,312 212,584,558 489,602,798 189,899,239 - As restated 614,214,787 625,000,000 614,214,787 625,000,000 Weighted average number of shares (Shares) The effect of dilutive potential ordinary shares 3,014,681 1,344,900 3,014,681 1,344,900 (ESOP Grant IV and Grant V) Weighted average number of shares 617,229,468 626,344,900 617,229,468 626,344,900 for diluted earnings per share (Shares) Basic earnings per shares (Baht) 0.42 0.34 0.80 0.34 - As previously reported - - - (0.04) - Prior year adjustment (Note 3) 0.42 0.34 0.80 0.30 - As restated The effect of dilutive potential ordinary shares - (ESOP Grant IV and Grant V) - - (0.01) 0.42 0.34 0.79 0.30 Diluted earnings per share (Baht)

For the years ended 31 December

128 CS LOXINFO


24 Cash flows from operating activities

Reconciliation of net profit for the year to cash flows from operating activities:-

Consolidated

Company

2007 2006 2007 2006 Restated Notes Baht Baht Baht Baht Net profit for the year 260,995,312 212,584,558 489,602,798 189,899,239 Adjustments for: Dividend receipts from a subsidiary - - (359,995,993) (80,693,310) Allowance for doubtful accounts 45,350,686 35,587,993 3,976,506 7,320,610 Allowance for obsolete inventory 79,699 1,053,461 79,699 1,053,461 Loss (gain) from liquidation of an associate 910 - (3,679,722) - Depreciation of property and equipment 10 140,462,684 140,125,411 76,155,332 83,297,840 Amortisation of equipment under concession agreements 11 21,260,713 33,473,851 21,260,713 29,285,024 Amortisation of intangible assets - other 12 15,432,697 12,732,431 5,989,460 4,785,858 Write-off of equipment, net 10 217,284 829,332 185,722 195,875 Write-off of equipment under concession agreements, net - 2,455 - - Write-off of intangible assets, net 12 3,629,008 - 3,629,008 - Recognition/amortisation of goodwill, net 13 68,651,929 81,536,134 - - Loss (gain) on sales of property and equipment (365,756) (296,269) 5,466 (422,930) Loss (gain) on sales of intangible assets (1,093,148) - - - Deferred income tax 14 18,174,194 112,940,365 1,536,931 45,086,699 Write-off withholding tax 847,123 - - - Provision for withholding tax - 569,980 - - Financial expenses for provision from acquisition of investment - 5,425,299 - 5,425,299 Reversal of provision from acquisition of investment 18 (23,496,234) - (8,137,949) - Unrealised loss (gain) on exchange rate (2,397) 226,137 (3,391) 182,069 Minority interests (265,011) 4,951,275 - - Share of net profit from investment - equity method 8 (39,928) (18,605) - - Changes in operating assets and liabilities: - trade accounts receivable and accrued income (34,794,200) (27,543,253) (11,925,060) (3,846,404) - amounts due from related parties (396,360) 2,782,374 138,636 832,829 - inventories 18,605,643 91,808,551 (1,525,251) (109,522) - advance payments to a related party 8,335,600 59,533,200 8,335,600 59,533,200 - other current assets (11,024,978) 267,403 (9,103,009) (2,782,473) - withholding tax 39,170,547 4,214,499 25,283,391 (3,393,830) - deposits (475,656) 5,605,219 135,561 118,476 - accounts payable and accrued expenses 2,382,132 (45,785,058) 33,304,840 (24,005,100) - amounts due to related parties 24,557 (429,192) (34,884) 34,884 - unearned income and advances received from customers (13,191,048) (33,213,930) (7,688,171) (20,731,622) - other current liabilities 25,645,304 1,522,195 6,277,416 756,218 - other non-current liabilities 158,136 3,066,034 1,339,561 3,747,263 Cash flows from operating activities 584,279,442 703,551,850 275,143,210 295,569,653

129 CS LOXINFO


25 Acquisition of investment

a) Watta Classified Company Limited On 27 April 2007, the Company acquired 120,000 ordinary shares of Watta Classified Company Limited (“Watta”) at Baht 733.34 per share, equivalent to 60% of the share capital of Watta. Total cost of acquisition is Baht 89.7 million, which includes financial advisory expenses of Baht 1.7 million. As a result, Watta and its subsidiaries changed status to be the Company’s subsidiaries from the date on which control was transferred to the Company. Net fair value of Watta’s consolidated assets and liabilities acquired at the acquisition date can be summarised as follows:- Net fair value Baht ’000 Cash and cash equivalents Trade accounts receivable and accrued income, net Inventories Other current assets Long-term investments Property and equipment, net (Note 10) Negative goodwill, net (Note 13) Non-current assets Trade accounts payable and note payable Current portion of obligations under finance leases Short-term loan from a related party Unearned income Accrued expenses Other current liabilities Other non-current liabilities Fair value of net assets Investment portion Fair value of net assets acquired Consideration for the acquisition Goodwill Net cash outflow on acquisition of a subsidiary, net of cash and cash equivalents in a subsidiary

13,343 27,512 3,328 1,818 4,303 13,867 (2,455) 7,807 (21,513) (686) (12,000) (4,601) (3,939) (8,795) (3,310) 14,679 60% 8,807 89,707 80,900 76,364

Goodwill recognised from the acquisition of Watta of Baht 80.9 million is presented as goodwill in the consolidated balance sheet (Note 13) and is amortised using the straight-line method over its estimated future benefits of nine years. 130 CS LOXINFO


b) Loxley Information Services Company Limited On 2 February 2007, the Company acquired 480,000 ordinary shares and 3,600 ordinary shares in Loxley Information Services Company Limited (“Loxserv”) from CAT Telecom Public Company Limited (CAT) and its employees respectively at Baht 12.90 per share, representing 1.86% of the paid-up share capital, at a total price of Baht 6.2 million. On 10 May 2007, the Company acquired an additional 991,593 ordinary shares in Loxserv from Point Asia Dot Com (Thailand) Company Limited at Baht 2.02 per share, equivalent to 3.81% of the paid-up share capital of Loxserv, at a total price of Baht 2 million. As a result of this acquisition, the Company owns 99.86% of Loxserv. The fair value of Loxserv’s consolidated assets and liabilities acquired as at the acquisition date, can be summarised as follows:-

Net fair value (2 February 2007) Baht ’000 Fair value of net assets as at the acquisition date Increase in investment portion Fair value of net assets acquired Total fair value of net assets as at the acquisition date Cash payment at the acquisition date Negative goodwill (Note 13)

Net fair value (10 May 2007) Baht ’000 370,488

365,747 1.86% 6,774

3.81% 14,116 20,890 8,239 12,651

Negative goodwill recognised from the acquisition of these ordinary shares in Loxserv of Baht 12.7 million is amortised using the straight-line method over its estimated useful life of four years. This estimated useful life is consistent with the amortisation period applicable to the remaining goodwill of LoxServ carried forward from prior periods.

131 CS LOXINFO


26 Income tax expense

Consolidated

Company

2007 2006 2007 2006 Restated Baht Baht Baht Baht 111,804,925 6,218,152 44,493,015 6,218,152 Current tax 18,174,194 112,940,365 1,536,931 45,086,699 Deferred tax 129,979,119 119,158,517 46,029,946 51,304,851

For the years ended 31 December

The reconciliation of income tax expense and the results of the accounting profit multiplied by the income tax rate is as follows:- Consolidated Company For the years ended 31 December 2007 2006 2007 2006 Restated Baht Baht Baht Baht 390,709,420 336,694,350 535,632,744 241,204,090 Profit before tax 29.28 27.71 25.00 25.00 Tax rate (%) The result of the accounting profit 114,399,718 93,298,004 133,908,186 60,301,023 multiplied by the income tax rate Share of net results from investments 4,651 - - - equity method (9,982) Unrealised loss carried forward that was not - - recognised as a deferred tax asset in the past - (7,117,656) Exempted income: Dividend received from a subsidiary - - (89,998,998) (20,173,328) - - - Other income (3,839,571) 19,428,954 32,973,518 2,120,758 11,177,156 Non-deductible expenses for tax purposes 129,979,119 119,158,517 46,029,946 51,304,851 Income tax expense As a listed company, the Company is eligible to apply a discounted tax rate of 25% for five fiscal years from 2004 to 2008. After this period, the applicable tax rate for the Company will be 30%. The applicable tax rate for the subsidiaries is 30%. 27 Guarantees

As at 31 December 2007, the Group had commitments with its bankers, whereby the banks have issued letters of guarantee in respect of business contracts and others amounting to approximately Baht 15 million (2006: Baht 24 million). 132 CS LOXINFO


28 Commitments

As at 31 December 2007, future minimum lease payments under non-cancelable operating lease agreements are as follows:-

Consolidated

Company

2007 2006 2007 2006 Baht ’000 Baht ’000 Baht ’000 Baht ’000 50,248 56,311 19,730 34,294 Not later than 1 year 44,578 29,537 4,786 24,455 More than 1 year but less than 5 years 94,826 85,848 24,516 58,749 Total commitments 29 Treasury shares

At the Board of Directors’ meeting on 9 August 2007, a resolution was passed to approve a program for liquidity management purposes to repurchase share up to 51.7 million shares, (8.3% of the total number of paid-up share capital) or the total budget for the program shall not exceed Baht 225 million, whichever firstly completed. The repurchase of shares on the Stock Exchange of Thailand will occur during the period from 27 August 2007 to 27 February 2008. The offered price for the repurchase of shares must not exceed the average closing price of those shares for the preceding five business days, plus an amount of 15% of that average closing price, according to the notification of the Stock Exchange of Thailand. The period when the repurchased shares can be resold is the three-year period following the completion of the repurchase, excluding the first six-months of such period. The offered price for the resale of the repurchased shares must not be less than the average closing price of those shares for the preceding five business days, less an amount of 15% of that average closing price, according to the notification of the Stock Exchange of Thailand. As at 22 November 2007, the Company has purchased 51.7 million ordinary shares (par value of Baht 1 each), or 8.3% of the total number of shares in issue, for a total of Baht 222.1 million achieving of the program to repurchase as approved by the Board of Directors. Movements of treasury shares are as follows:- Consolidated Company 31 December 31 December 31 December 31 December For the years ended 2007 2006 2007 2006 Baht Baht Baht Baht Opening balance - - - - 222,088,462 - 222,088,462 - Increase during the year 222,088,462 - 222,088,462 - Closing balance

133 CS LOXINFO


30 Legal reserve

Movements of the legal reserve are as follows:- For the years ended

Consolidated

Company

31 December 31 December 31 December 31 December

2007 2006 2007 2006 Baht Baht Baht Baht 45,636,154 35,006,925 45,636,154 35,006,925 Opening balance - (45,636,154) - Offsetting legal reserve with deficit (45,636,154) 24,480,140 10,629,229 24,480,140 10,629,229 Reserve increase during the year 24,480,140 45,636,154 24,480,140 45,636,154 Closing balance Under the Public Limited Company Act B.E. 2535, the Company is required to set aside as a legal reserve at least 5% of its net profit after accumulated deficit brought forward (if any) until the reserve is not less than 10% of the registered capital. The legal reserve is non-distributable.

31 Treasury share reserve

Movements of the treasury share reserve are as follows:- For the years ended

Opening balance Reserve increase during the year Closing balance

Consolidated

Company

31 December 31 December 31 December 31 December

2007 Baht

- 222,088,462 222,088,462

2006 Baht

2007 Baht

- - - 222,088,462 - 222,088,462

2006 Baht - - -

According to letter No. Gor Lor Tor. Chor Sor. (Vor) 2/2548 of the Office of the Securities and Exchange Commission, dated 14 February 2005 concerning the acquisition of treasury shares, a public limited company may buy back treasury shares in an amount not exceeding the amount of its retained earnings and is to appropriate an equal amount of retained earnings to a reserve for treasury shares, which must be maintained until the company either sells the treasury shares or reduces its paid up share capital by an amount equal to the value of the treasury shares which it could not sell. As at 31 December 2007, the Company has already appropriated the full-required amount for the reverse from retained earnings.

134 CS LOXINFO


32 Minority interest

Consolidated

31 December 31 December 2007 2006 Baht Baht 38,355,912 19,740,143 Opening balance (20,890,495) - Decrease from the acquisition of shares from minorities (Note 25) 5,871,605 13,664,494 Increase from acquisition of a subsidiary Share of net profit (loss) of subsidiaries (265,011) 4,951,275 23,072,011 38,355,912 Closing balance 33 Related party transactions

The Company is an associate of Shin Satellite Public Company Limited, a company incorporated in Thailand and a subsidiary of Shin Corporation Public Company Limited (collectively “Shin Group”). Shin Broadband Internet (Thailand) Company Limited, which is a wholly owned subsidiary of Shin Satellite Public Company Limited, owns 43.48% of the Company’s share capital, and Point Asia Dot Com (Thailand) Company Limited, a subsidiary of Loxley Public Company Limited, and Singapore Telecommunications Limited, owns 3.52% and 14.61% of the Company’s share capital respectively. These percentage are calculated taking into account the impact of treasury shares. Shin Corporation Public Company Limited and Singapore Telecommunications Limited are within the group companies of Temasek Holdings Pte Limited incorporated in Singapore. Transactions with entities within these group companies are recognised as related party transactions of the Company. During the year, the Company carried out transactions with its related parties, the terms of which were negotiated on an arm’s length basis in the ordinary course of business and according to normal trade conditions. Management service income is determined on a mutually agreed basis as a fixed monthly fee The following significant transactions were carried out with related parties:- a) Revenues Consolidated Company 2007 2006 2007 2006 Baht ’000 Baht ’000 Baht ’000 Baht ’000 Sales and service income: Major shareholder and its related parties 203,132 235,350 50,410 75,966 Subsidiaries - - 6,040 7,470 Other related parties 9,316 12,092 9,316 12,092 Other income: Major shareholder and its related parties 715 779 715 779 Subsidiaries - - 3,682 8,810 Associate - - 3,680 - Dividend income: Subsidiary - - 359,996 80,693 Total revenues 213,163 248,221 433,839 185,810 135 CS LOXINFO


b) Expenses

Consolidated Company 2007 2006 2007 2006 Baht ’000 Baht ’000 Baht ’000 Baht ’000 Purchase of services and goods: 221,386 183,996 218,670 181,978 Major shareholder and its related parties Subsidiaries - - 67,991 91,680 2,544 7,159 2,544 7,159 Other related parties Other expenses: 17,743 32,623 4,505 13,943 Major shareholder and its related parties Subsidiaries - - 443 935 7,079 7,770 7,079 7,770 Other related parties Interest expenses: Subsidiary - - 258 - 246 - - - Other related party Total expenses 248,998 231,548 301,490 303,465

c) Outstanding balances arising from sales/purchases of goods/services/and expenses

Consolidated Company 2007 2006 2007 2006 Baht ’000 Baht ’000 Baht ’000 Baht ’000 Trade accounts receivable Major shareholder and its related parties 37,267 61,319 16,173 30,054 Subsidiaries - - 723 6,341 Other related parties 1,440 5,829 1,440 3,862 38,707 67,148 18,336 40,257 Less Allowance for doubtful accounts (914) (2,076) - (600) Total trade accounts receivable 37,793 65,072 18,336 39,657 Accrued income Major shareholder and its related parties 5,990 1,354 5,990 1,354 Total trade accounts receivable and accrued income 43,783 66,426 24,326 41,011

136 CS LOXINFO


c) Outstanding balances arising from sales/purchases of goods/services/and expenses (Cont’d)

Consolidated Company 2007 2006 2007 2006 Baht ’000 Baht ’000 Baht ’000 Baht ’000

Amounts due from related parties Major shareholder and its related parties 558 162 - - Subsidiary - - 282 420 Total amounts due from related parties 558 162 282 420 Trade accounts payable Major shareholder and its related parties 34,731 27,425 30,137 22,945 Subsidiaries - - 4,967 7,319 Other related parties 536 1,425 536 1,425 Total trade accounts payable 35,267 28,850 35,640 31,689 Account payable of fixed assets Major shareholder and its related parties - 5,801 - 5,801 Total account payable of fixed assets - 5,801 - 5,801 Amounts due to related parties Major shareholder and its related parties 2,553 2,485 - - Other related parties - 43 - 35 Total amounts due to related parties 2,553 2,528 - 35 Accrued expenses Major shareholder and its related parties 506 667 506 667 Other related parties - 1,624 - 1,624 Total accrued expenses 506 2,291 506 2,291

137 CS LOXINFO


d) Short-term borrowing from a related party The movements of short-term borrowing from a related party can be analysed as follows:-

Consolidated Company 2007 2006 2007 2006 Baht ’000 Baht ’000 Baht ’000 Baht ’000

Opening balance Borrowing from a related party Closing balance

- 12,000 12,000

- - -

- - -

- - -

Short-term loan from a related party had no collateral, effective interest rate of 3% per annum and repayment within 1 year.

e) Advance payment to a related party

Consolidated Company 2007 2006 2007 2006 Baht ’000 Baht ’000 Baht ’000 Baht ’000 8,336 67,869 8,336 67,869 Advance payment to a related party for services (59,533) (8,336) (59,533) Recognised as expenses during the year (8,336) 8,336 - 8,336 Total -

The Company made an advance payment to a related party for Internet network service. The prepayment was charged to the income statements based on the service fee and the period as specified in the contract.

138 CS LOXINFO


f) Warrants of Shin Corporation Public Company Limited and Shin Satellite Public Company

Limited were granted to a member of the Board of Directors of the Company Shin Satellite Public Company Limited (“SSA”), the parent company of Shin Broadband Internet (Thailand) Company Limited, and Shin Corporation Public Company Limited (“Shin”), the parent company of SSA, issued their warrants to members of the Board of Directors of SSA and Shin respectively. The warrants of both companies are in registered form, are non-transferable and have no offering price. The terms of the warrants do not exceed five years. The details of the warrants are shown below:-

Shin Satellite Public Company Limited Issued dates

(Before dilution) Exercise Exercise prices ratio Issued (Baht/unit) (unit : share) units

ESOP - Grant I 27 March 2002 3,298,400 1 : 2.04490 30 May 2003 31 May 2004 31 May 2005 31 May 2006

ESOP - Grant II ESOP - Grant III ESOP - Grant IV ESOP - Grant V

1,663,000 1 : 2.04490 1,944,200 1 : 1.02245 1,619,900 1 : 1.02245 2,199,800 1 : 1

Exercise period First

Last

13.081 Expired on 26 March 2007 6.279 13.913 16.441 11.870

30 May 2004 31 May 2005 31 May 2006 31 May 2007

30 May 2008 31 May 2009 31 May 2010 31 May 2011

Shin Corporation Public Company Limited Issued dates

(Before dilution) Exercise Exercise prices ratio Issued (Baht/unit) (unit : share) units

ESOP - Grant I 27 March 2002 18,336,200 1 : 1.11410 ESOP - Grant II ESOP - Grant III ESOP - Grant IV ESOP - Grant V

30 May 2003 31 May 2004 31 May 2005 31 July 2006

1,899,300 1,089,500 1,149,200 1,018,200

1 : 1.11410 1 : 1.11410 1 : 1.09950 1 : 1.06582

Exercise period First

Last

12.269 Expired on 26 March 2007 12.269 32.681 37.981 35.353

139 CS LOXINFO

31 May 2004 31 May 2005 31 May 2006 31 July 2007

30 May 2008 30 May 2009 30 May 2010 30 July 2011


g) Directors’ remuneration In 2007, the total directors’ remuneration was Baht 3.72 million (2006: Baht 2.40 million). Directors’ remuneration represents monthly compensation, annual remuneration, and meeting fees within the amount approved by the shareholders of the Company at its annual general meeting. h) Warrants of SSA held by a director of AD Venture Company Limited A director of AD Venture Company Limited (“ADV”) held SSA’s Employee Stock Option Plan (ESOP) Grant I issued on 27 March 2002 and Grant II issued on 30 May 2003 amounting to 81,700 units and 56,200 units, respectively. These warrants of SSA were grant to the director during the year he was the employee of SSA, which is before he was appointed as a director of ADV.

34 Financial instruments

The principal financial risk faced by the Group is credit risks. However, it has no significant concentrations of credit risk. The carrying amounts of financial assets and liabilities approximate fair value. Foreign currency forward contracts payable, net As at 31 December 2007 and 31 December 2006, a subsidiary has entered into foreign currency forward contracts to hedge the foreign exchange rate risk in respect of accounts payable. The foreign currency forward contracts payable under these contracts are shown below:-

Consolidated

Company

2007 2006 2007 2006 Baht Baht Baht Baht Foreign currency forward contracts payable, net Foreign currency forward contracts receivable 15,276,918 73,888,552 - - Foreign currency forward contracts payable 15,302,442 74,595,472 - - Total foreign currency forward contracts payable, net 25,524 706,920 - -

140 CS LOXINFO


Foreign currency forward contracts payable, net (Cont’d)

Within 1 year longer than 1 year Total

Consolidated

2007 USD

2006 USD

Baht

454,000 15,302,442 - - 454,000 15,302,442

Baht

2,055,000 74,595,472 - - 2,055,000 74,595,472

Net fair values of derivative financial instruments The net fair values of derivative financial instruments at the balance sheet date were:-

Financial derivatives

Foreign currency forward contracts

Consolidated 2007 2006 Baht Baht 15,315,626 73,888,552

Company 2007 2006 Baht Baht -

-

The net fair values of foreign currency forward contracts and option contracts have been calculated based on rates quoted by the Group’s bankers to terminate the contracts at the balance sheet date.

141 CS LOXINFO


35 Segment information

Financial information by business segment: For the year ended 31 December 2007 (Baht ’000) Satellite uplink - downlink Internet Media and Mobile Consolidation services services Advertising Contents eliminations

Revenues from sales and services Share of net profit from investments in an associate Cost of sales and services Selling and administrative expenses Segment results Operating profit Other income Loss on foreign exchange Profit before interest Interest expenses Deferred income tax Minority interest Net profit for the year Total segment assets Segment liabilities Depreciation (Note 10) Amortisation of equipment under concession agreements (Note 11) Recognition/amortisation of goodwill (Note 13) Amortisation of intangible assets - other (Note 12) Total depreciation and amortisation

25,366 - (17,727) - 7,639 34,100 2,197 4,794 4,174 - - 8,968

1,375,779 40 (917,032) (317,389) 141,398 1,756,533 455,594 91,253 17,087 5,160 6,596 120,096

993,513 - (378,890) (457,445) 157,178 524,389 269,004 35,935 - 69,680 4,647 110,262

142 CS LOXINFO

147,465 - (88,792) (55,485) 3,188 61,863 24,967 8,481 - (6,188) 4,190 6,483

Group

(24,575) 2,517,548 - 40 20,857 (1,381,584) 3,718 (826,601) -

309,403 309,403 82,148 (486)

391,065 (356) (129,979) 265

260,995

(8,591)

2,368,294

(8,591)

743,171

- - - -

140,463 21,261 68,652 15,433

-

245,809


Financial information by business segment: (Cont’d) For the year ended 31 December 2006 (Baht ’000) Satellite uplink - downlink Internet Media and Mobile Consolidation services services Advertising Contents eliminations

Revenues from sales and services Share of net profit from investments in an associate Cost of sales and services Selling and administrative expenses Segment results Operating profit Other income Loss on foreign exchange Profit before interest Interest expenses Deferred income tax Minority interest Net profit for the year Segment assets Associate Total segment assets Segment liabilities Depreciation Amortisation of equipment under concession agreements Recognition/amortisation of goodwill Amortisation of intangible assets - other Total depreciation and amortisation

30,907 - (22,125) - 8,782 28,439 - 28,439 3,709 4,785 4,174 - - 8,959

1,418,822 19 (951,130) (323,020) 144,691 1,819,219 3,693 1,822,912 567,658 93,881 29,300 8,067 4,921 136,169

917,407 - (343,216) (443,383) 130,808 662,099 - 662,099 202,751 34,558 - 76,381 4,137 115,076

143 CS LOXINFO

103,227 - (57,183) (38,021) 8,023 110,411 - 110,411 41,308 6,901 - (2,912) 3,674 7,663

Group

(9,987) 2,460,376 - 19 8,553 (1,365,101) 1,434 (802,990) -

292,304

292,304 51,843 (2,023)

(8,615) - (8,615)

342,124 (5,429) (119,159) (4,951) 212,585 2,611,553 3,693 2,615,246

(8,615)

806,811

- - - -

140,125 33,474 81,536 12,732

-

267,867


Thailand is the home country of the Group and the operating territory. The Group is organised into the following business segments:- • Satellite uplink-downlink services • Sales and services relating to the Internet business • Media and advertising • Mobile contents

36 Dividend payment

At the annual ordinary shareholders meeting of the Company on 23 April 2007, the shareholders passed a resolution to approve the dividend payment for the year 2006 of Baht 0.14 per share totalling Baht 87.50 million (2006: Baht 206.25 million). The Company paid the dividend on 4 May 2007. At the Board of Directors’ meeting on 9 August 2007, a resolution was passed to approve the interim dividend payment of Baht 0.20 per share totalling Baht 125.36 million. The Company paid the dividend on 5 September 2007 (2006: Baht 375.00 million). Grand total of dividend paid in 2007 was Baht 212.86 million (2006: Baht 581.25 million).

37 Contingent Liabilities

In 2007, a debtor made a claim against a subsidiary in respect of an alleged default on an existing agreement seeking damages from the subsidiary. The claim is currently being considered by the relevant courts. After seeking appropriate legal advice, the opinion of the management of the subsidiary is that the resolution of this claim will not give rise to any significant loss. As such, the subsidiary has not recorded any provision in respect of this matter.

38 Subsequent events

a) Acquisition of ordinary shares of Shineedotcom Company Limited On 31 January 2008, AD Venture Company Limited (“ADV”) acquired 2.4 million ordinary shares of Shineedotcom Company Limited (“Shinee”) at Baht 6.29 per share, equivalent to 30% of the paid-up share capital of Shinee, at a total price of Baht 15.1 million. As a result of this acquisition, the Company owns 100% share capital of Shinee. b) Proposed dividend payment At the Board of Directors’ meeting of the Company on 20 February 2008, the Board of Directors passed a resolution to recommend to the annual general meeting of shareholders for the payment of dividends for the year 2007, at the rate of Baht 0.20 per share. The proposed dividends must be approved by the shareholders at their meeting. 144 CS LOXINFO


Remuneration of Auditors Audit fees Audit fee of Baht 1.94 million to the auditor of the Company, and the audit fee of Baht 2.1 million to the auditor of its subsidiaries. Other service fees Acconting service fees for observation of destruction inventory totalling Baht 0.04 million to the auditor of the Company. There is no commitment to pay for any services in respect of the agreements in year 2007.

High

Ouality Internet 145 CS LOXINFO


General Information on Reference Persons Security

Auditor

Registrar

Thailand Securities Depository Company Limited

62 The Stock Exchange of Thailand Building, Ratchadapisek Road, Klongtoey, Klongtoey, Bangkok 10110 Tel : +66 (02) 229 2800 Fax : +66 (02) 359 1259 Thailand Securities Depository Company Limited Capital Market Academy Building, The Stock Exchange of Thailand 2/7 Moo 4, (North Park Project) Vibhavadi-Rangsit Road, Km. 27, Tung Song Hong, Laksi, Bangkok 10210 Tel : +66 (02) 596 9000 Fax : +66 (02) 832 4994-6 Website : www.tsd.co.th Mr. Prasit Yuengsrikul

Certified Public Accountant Registration Number 4174 PricewaterhouseCoopers ABAS Limited 15th Floor, Bangkok City Tower, 179/74-80 South Sathorn Road, Tungmahamek, Sathorn, Bangkok 10120 Tel : +66 (02) 286 9999, +66 (02) 344 1000 Fax : +66 (02) 286 5050 Website : www.pwc.com/thailand

High

Ouality 146 CS LOXINFO


Investor Information

Investors should contact the Investor Relations Department to request information about CS LoxInfo or its subsidiaries and associate companies:

Investor Relations Department

CS LoxInfo Public Company Limited 973 President Tower 11th Floor, Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330, Thailand Tel : +66 (02) 263 8000 Ext. 5184 Fax : +66 (02) 263 8102 E-mail : ir@csloxinfo.net Website : www.csloxinfo.com CS LoxInfo is listed on the Stock Exchange of Thailand (SET) SET ticker Reuters Bloomberg

CSL CSL.BK CSL TB

Foreign limit : 49% Fiscal year ends : December 31 External Auditor : PriceWaterhouseCoopers ABAS Limited

Internet 147 CS LOXINFO


Contributions to Society

CS LoxInfo Promotes Smart Internet Use for the Youth in the Smart Click Project Committed to taking part in the development of Thai society, CS LoxInfo has arranged activities for social development in the “Smart Click” project with an aim to encourage Thai youth to use Internet creatively and appropriately.

Initiated by CS LoxInfo Public Co., Ltd., a leading Internet service provider of Thailand, the Smart Click project has been carried out for three years. In 2007, a variety of activities were conducted seriously and consecutively, including publishing a Smart Click Handbook for enhancing learning potential of Thai youth in proper Internet use, which enables children and parents to learn about Internet by themselves and suggests some nice web sites to explore. In addition to the handbook, the web site www.smartclick.in.th was developed under the concept of “Good Brains and Good Work to Share,” where the young can exchange their learning experience together. Moreover, in the Smart Click Roadshow in 16 schools in Bangkok organized by CS LoxInfo,

Pol. Gen. Yanapol Yangyuen, Commander of the Bureau of Technology and Cyber Crime, the Department of Special Investigation (DSI), narrated real-life incidents about the positive and negative sides of Internet and taught about morals in the cyber world as part of efforts to make the youth of the new generation grow up to become quality citizens in the future. Besides, aimed at lending a hand to children in need in the four parts of the countries, another activity of the Smart Click is to provide support for schools lacking funds as well as teaching and learning equipment. In the past June, the company donated computers to Ban Prasat Kwang Khao School and Ban Rueathong Khlongkham School in Sri Saket province and invited an expert to give knowledge about smart Internet use for parents and children of these schools.

All the activities have been created in the hope that they have contributed to the improvement of the quality of life of Thai people so that the people become strong and effective citizens in our society.


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Professor Wongkulpat Sanidvongs na Ayudyha, M.D., Chairman of the Board of CS LoxInfo Public Company Limited, in cooperation with Suan Dusit Rajabhat University, Hydro and Agro Informatics Institute and Lampang Non-Formal Education Centre conducted activities for promoting learning for remote communities based on Sufficiency Economy philosophy. CS LoxInfo donated computers and funds as well as organised trainings in computer knowledge, namely computer problems solving and Internet connection. In addition, there were trainings in marketing products such as package designing and food processing, for youth and housewives at Ban Pa Miang School, Ban Sam Kha School, Wat Ban Paen Pongchai Education Centre in Lampang province, and Hill Area and Community Development Foundation in Chiang Rai province. These activities were held in celebration of His Majesty King Bhumibolûs 80th Birthday Anniversary. Realising the importance of learning by means of "Reaching, Understanding and Developing" which is essential to the development of the youth and nation, CS LoxInfo has determined to promote learning and propagate information that benefits communities and young people in order that new ideas are generated and people can adapt them to suit their own talents and the needs of their communities. The good deeds we did in the passing year 2007 were a fitting tribute to His Majesty the King. In 2008, CS LoxInfo continues contributing to flourishing Thai society. We hope that communities will take advantage of the provided knowledge. All of our efforts are to produce practical, concrete results that are continuous and sustainable. This is in dedication to HM the King on the auspicious occasion of His 80th Birthday Anniversary.

www.smartclick.in.th

149 CS LOXINFO


The Charitable Project for Aids Patients

The company has participated in various public charities such as the donation project named Charitable Merit Pass Card of Phra Udom Prachathorn (Dr. Alongkot of Wat Phrabatnampu) for the aids patients through Audiotex with Charitable Merit Hotline at 1900-222-000 and 1900-222-200. This is an opportunity for the Thai people to be involved in a charitable cause around the clock whenever they wish.

Thailand YellowPages gives paper to Recycle Paper Products Group

The company realizes the importance in resource efficiency and of being environmentally friendly. The company has handed over 4,000 old copies of Yellow Pages to the Recycle Paper Products Group to support the use of the recycled paper. The YellowPages paper can be used to make various kinds of handmade products such as baskets, boxes, flowers, key chains, etc. This increases the value of the used paper very well and generates incomes to the housewives group. The group’s products are very well appreciated by Thai people and foreigners.

Thailand YellowPages support education by awarding the best advertising design

The company is the leader in business media that concentrates on advertising design which provides complete information to the consumers so as to benefit them in their decision making in buying the products and services. Therefore, the company has realized the importance in combining the creativity with advertising design; thus joined hands with Bangkok Art Directors’ Association (B.A.D.) in organizing the Thailand YellowPages Directory Ad Design 2007 (TYPA 2007) Project to award the total of Baht 150,000 in scholarships to the students who won the advertising design in Thailand YellowPages. This is an event that the company has been supporting for the second year to encourage the students to use creativity and imagination in the advertisings. This event has attracted many students from different educational institutions as seen from more entrants this year as compared to the year 2006.

Educational Support Project

WATTA supports its educational magazines for schools that are lack of budget to purchase such publications. Each week, there are 200 magazines being distributed to over 100 schools and 150 magazines being distributed to Wat Suan Kaew.

Learning Opportunity Project

WATTA is a means in searching funding sponsorship for children who are chosen and certified by schools that they are lack of learning opportunities by providing spaces in Lok Wan Nee Newspapers everyday and Education Today Magazines every week.

150 CS LOXINFO


Dhamma for Society Project

Condominium for Street Dogs Project by Wat Suan Kaew Foundation

WATTA is a center in collecting the donations and donates money to street dogs through Wat Suan Kaew Foundation under Phra Phayom Kalayano’s kind responsibility in order to take care, give shelters and feed the dogs that are sick, crippled and left at the temples.

CS LOXINFO received an honor award “Board of the Year Awards 2006/2007”

The Thai Institute of Director (IOD) in collaboration with the Board of Trade of Thailand, the Federation of Thai Industries, the Thai Bankers Association, the Listed Companies Association, the Federation of Thai Capital Market Organizations and the Stock Exchange of Thailand passed the resolution to grant the prestigious award “Board of the Year for Exemplary Practices” to CS LOXINFO Public Company Limited to honor the Company’s Board of Directors for outstanding performance of their duties in accordance with good corporate governance practice for the year 2006/2007.

WATTA is a means in organizing various events to encourage youths as well as general public to be a good person and to have moral. For example, in order to encourage politicians and public to pay attention to politics in a moral way, WATTA in conjunction with Phra Phayom Kalayano of Wat Suan Kaew organized an innovation talk on “Moral Politic? and gave out the Company’s books.

CS LOXINFO’s Project “Send Books Spread Knowledge to the Library”

CS LOXINFO Public Company Limited joined the 32-year anniversary celebration of the Stock Exchange of Thailand by delivering under the project “Send Books Spread Knowledge To the Library” to pass on to school libraries, public libraries and prison libraries that are under the care of the Thai Library Association. This project was organized to provide Thai people with better opportunities to learn develop themselves from reading books in the libraries which in turn improving their quality of life and social as a whole.

The Company’s Board of Directors is regarded as the representatives of the shareholders. It plays a significant role in overseeing management’s performance in creating maximum value for shareholders, taking into consideration transparency and fairness to every stakeholder. The Board of Directors performs its duties in accordance with good governance guidelines which reflect efficiency and productivity of the Company’s operations in a satisfactory manner.

151 CS LOXINFO


Glossary : Asymmetric Digital Subscriber Line, a broadband Internet ADSL connection technology which utilizes existing copper telephone lines. ADV : AD Venture Company Limited : A voice processing application that allows callers to listen to a menu Audiotext of option and then select the area they are interested in by pressing the corresponding number on their telephone’s keypad. : A type of high-speed data transmission in which a single medium Broadband (wire) can carry multiple signals at once. CAT : CAT Telecommunication Public Company Limited Content Aggregator : Someone who aggregates content and sells it. Content Provider : Someone who owns content and sell it. CSP : C.S. Satellite Phone Company Limited CSS : CS LoxInfo Solutions Company Limited Dial-up : Internet connection over a telephone line using 56 Kbps Modem. IPSTAR : High-speed two way broadband Internet connection via satellite technologies. : Internet connection receiving data via satellite signal and sending iPTV data over a standard telephone line. : Integrated Services Digital Network, an Internet connection ISDN technology over digital telephone lines or normal telephone wires. Java game : Games which are created for mobile phones by using Java Script. : A permanent connection over a leased circuit or wire, which is Leased Line dedicated for Internet connection. LoxServe : Loxley Information Services Limited NTC : National Telecommunications Commission. PA : Point Asia Dot Com (Thailand) Company Limited Ringtone : Ringer sound or tone of telephone. SBI : Shin Broadband Internet (Thailand) Company Limited SHIN : Shin Corporation Public Company Limited SHINEE : Shineedotcom Company Limited SingTel : Singapore Telecommunication Limited SSA : Shin Satellite Public Company Limited Thailand Corporate Pages(White pages) : Telephone directory for business/corporate clients listed by name. The company or CS LoxInfo : CS LoxInfo Public Company Limited TMC : Teleinfo Media Public Company Limited TOT : TOT Public Company Limited Transponder : An electronic device, inside a satellite, that uses a satellite dish to receive signals from the teleport and re-transmits to a ground teleport. VDO Clip : Animated images with sound. VoIP : Voice over Internet Protocol, voice data transmission by using a protocol over the Internet. Wallpaper : Image on the screen. Wap service : A service which can be used to download straight onto a mobile phone. WATTA : Watta Classified Company Limited Web portal : A web site which is the center for customers to go to the other websites. YellowPages : Telephone LOXINFO for products and services. 152 CSdirectories


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CSL_2007 CS LOXINFO PCL Annual Report 2007

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