THAILAND POST CO.,LTD. (THP) has entered into its 3rd year of company-
oriented business operation. Through the years, THP has never remained dormant to
develop innovative services alongside modern technology and electronic devices, to
support faster and more efficient services, which will respond to customers’ demands on a
full scale. This is done by expanding its network to cover the country’s all regions and keen
commitment to continually develop its services to achieve internally accepted standards.
The past annual performance reflected a rewarding result, with the net operating
performance in 2005 amounting to 347.67 million baht.

THP’s ability to make continued profits within 2 years after the corporatization-transferring
from the government-subsidized to a self-sustainable entity, resulted from maintaining
revenues from core businesses and extending its business base, which will lead to
revenue-guaranteed structure, assuring that the company will continue to be viable and
sustainable.

Innovative services are developed to respond to customers’ changing demand and to be
used for business operation. 4  business  markets are as follows:

1. Communication Market
            This market represents delivery of information and documents to one or more recipients.

2. Transport Market
            This market represents a transfer of items/products in the form of packages, with
addressees’ names and addresses written thereon.

3.  Retail Market
            This market includes services provided by service providers with coverage
network in various areas, acting as agents/or sale points. This market includes services
provided by service providers with coverage network in various areas, acting as agents .

            This market is responsible for financial collecting and transfer, as well as enabling
financial convenience both to the general public and small businesses.

            Since 2005, THP has focused on strengthening “Thailand Post” brand, lending
itself to be a        network to help connect all Thai, regardless of relationships, levels and
regions. Excellent   service resonates with a welcome addition of individual employees’
willingness, to ensure that      customers are truly impressed with and loyal to “Thailand
Post” brand; that which will help boost their continued constant contribution.

            This third year’s operation guidelines not only concentrate on creating “Thailand
Post” brand, but also on building a secure and sustainable financial status. These entail
adaptations to ensure its existence among increased tougher competitions. The following
revealed THP’s       annual performance in various areas:

            In Services

            Committed to developing innovative services in response to individual social and
business       groups, THP introduced a number of services to facilitate convenience to the
general public,      and the governmental and private sectors. Major achieved results were
described below.

THP completed installing 1,178 post offices nationwide with online computer network, while
simultaneously transferring its domestic money order system to an online transaction-
based system, whereby remitters can transfer money within a day. This is a fast money
transfer, comparable to those offered by other business sectors. In addition, maximum
transferable amount per issue is permitted at 50,000 baht. Convenience to get the money
is at the payees’ fingertips, as they do not need to fill in application forms, but presenting
their identification cards and giving signatures in the related documents. Moreover, THP
joined with new             partners    to offer services through “Pay at Post”. These partners
include 8 business groups, i.e. public welfare, banks, mobile phone providers,
leasing/credit/payment by installments, finished products, online service, insurance, and
the government sectors. Sales promotion and ad campaigns with those partners are
encouraged to raise consumers’ awareness and develop franchises by the year 2006.

            Regarding international services, THP cooperated with Western Union in boosting
sales in        2005’s first half, focusing on public ad campaigns. To start with, post offices
were given with             ad brochures, and encouraged to display ad light boxes. It even
sought coordination from      Thailand Overseas Employment Administration to help inform
Thai labor going abroad of    receipt and transfer of money through Western Union.

            THP has further introduced International Postal System (IPS)-a system developed
to enable mail bag processing and tracing of mail items- with its international EMS,
already    undergoing an information exchange with some potential postal administrations.
At present, the system is connected with 60 out of 93 countries offering the IPS. This IPS is
also used  for making up of mail bags of international outgoing parcels at Don Muang and
Bangkok Mail Centres. Furthermore, it makes available a website to enable tracing of
international EMS and parcels at http://www.thailandpost.com, by selecting menu “Postal
Investigation”, filling in inquiry details. The results will be communicated to recipients by
e-mail.
           
            In Marketing

Marketing performance is another vital factor that helps boost postal business among
governmental and private sectors. In 2005, THP introduced an agency service for end-
users in the governmental sector, e.g. it acted as an agent for the Social Security Fund for
in-payment and out-payment at post offices, and it cooperated with the Teachers’ Council
of Thailand receiving registration fees for applications of academic profession permits.
Besides, it acted as an agent selling applications for graduate school studies at Mahidol
University and Sukhothai Thammathirat University, available at the country’s all district
post offices, and all post offices  in Bangkok and its environs.

            THP also acted as an agent for the private sector’s end-users, e.g. payment for
Orient Thai        Airlines’ One-Two-Go air tickets with reservations made at the call centre
1126, and payment    made at post offices nationwide. Passengers keep slips printed out
from the CA POS to obtain             boarding passes upon checking in. In addition, THP
acted as an agent for ticket bookings for         Thai Ticket Master at 50 post offices in
Bangkok and its environs. Also, it represented  EASY         BUY’s application form pick
ups at 450 post offices.

            THP agreed to accept payment for the Embassy of the United States of America
visa application fees at Pay at Post from the country’s 246 post offices. This is to help
facilitate the applicants living in the regions,who do not need to travel to Bangkok to make
payment. THP is granted by the Embassy to carry out the Courier Pass Back – dispatching
the Embassy-approved visas to visa applicants. A service booth was set up within the
Embassy’s precinct to take up applications and dispatch, using its domestic EMS system,
by which all processes can be traced. Lost or damaged items will be indemnified. This
resulted in a reduced congestion of visa applicants at the Embassy. The visa applicants
enjoying more convenience, Thailand Post image will ensure internationally targeted
reliability.

            In this day and age, life insurance-based postal services are on the rise, and revel
in success in many countries, owing to the fact that the assured are able to apply for life
insurances, pay insurance policies, or even claim for compensation, etc at post offices.
THP, having studied the feasibility, triggered off life insurance applications, acceptance
of insurance policies, and submission of life insurance application forms to insurance
companies for consideration. In doing so, THP appointed select strategic partners to
customize insurance policies for its employees. As a result, it introduced applications and
payment of life insurance on individual accidents from New Hampshire Insurance Co., Ltd.
(AIG), ranking as a third company (after Finansa Life Assurance Co., Ltd. and Siam
Samsung Life Insurance Co., Ltd.), at nationwide post office under the project entitled “
PremierCare@Post”.

            In other respects, THP represented an agent selling miscellaneous items, i.e.
greeting cards hand painted by HRH Princess Maha Chakri Sirindhorn, refill cards for
Ji-Net, U Star products, and leasing of revered amulets. In response to the government’s
energy saving policy promoting the public to make more use of public transport, THP
took part in a number of domestic expo booths, i.e. the 3rd International Book Fair & 33rd
National Book Fair, and Book Expo 2005, offering home deliveries to expo attendees.
A temporary post office was set up to facilitate non-bringing car owners to purchase
products by post. More than that, to satisfy the city’s core customers in business booming
areas, THP offered a City Express service, which focuses on speedy delivery to recipients
within time limit, using flat rates for domestic EMS at 60, 80, 120, and 170 baht respectively,
while delivery by international EMS will be charged per item, with prices varying depending
destinations. The first such service was introduced at Chulalongkorn University Book
Center at Siam Square.

            THP underwent an aggressive marketing approach in the sale of philatelic stamps
and collectibles, in view of satisfying customers’ demand and increasing its revenue, i.e.
making up of personalized stamps making up of new-formatted stamps, e.g. circular and
triangular stamps

            Such innovations make a good impression with customers and philatelists alike, as
well as      pave the way for expanding THP’s future philatelic market.

In 2005, THP held at IMPACT Arena, Exhibition and Convention Center, Muang Thong
Thani a National Stamp Exhibition “THAIPEX ’ 05” during August 3-7. Highlights of the
exhibition were displays of stamp evolutions from a myriad of epochs to a digital era.
Concurrently, individual philatelist was able to make 3 dimensional personalized stamp,
the first time of its kind. This  Expo attracted around 300,000 attendees. 

THP joined with Modernine TV to organize “Bid welcome to 2006” on December 31,
2005 at        National Stadium to celebrate New Year’s Eve and New Year’s Day for all
Thai across the country. The public were invited to have fun joining the celebration by
sending in postcards to P.O. Box 2549. His Excellency  Pol.Lt.Col. Prime Minister Thaksin
Shinawatra presided  over  the lucky draw event, which fascinated a lot of interested parties

            In creating goodwill and promoting sales, THP recommended a close monitoring
of customer relations, both at management’s and staff’s levels-giving continued frequent
visits to customers. Doing so enables a fuller understanding of problems and likely
suggestions they might have, which will in turn benefit THP in improving its operation,
seeking customized services, quality monitoring, and receipt of complaints. Furthermore,
THP holds public activities to add value to its services and products. Inclusive is an
attractive tariff as a sweetener, which will help maintain major customers’ continued loyalty.
Since last year, it has witnessed an outstanding trend.

            THP has plans to promote learning society, encouraging younger generation and
the public to   grow well-read and develop more communication by writing letters and
postcards. It has coordinated with governmental and private sectors to initiate writing
promotion projects among younger generation on various occasions, boosting them to
have a passion for reading. With this being fostered, the essence of “Post” will always be
maintained.

            Currently, THP has access to end-users at all levels nationwide, offering universal
quality services, which are warmly applauded. Over and above, THP strictly adheres to
promises contributing the best network connection to all Thai, unfolded with Thailand Post
amenities.
      
Government-Promoted Activities

In response to the government’s policy, THP was assigned to dispatch ballot papers for
Members of Parliament (MPS), done in a democratic procedure- representing as an agent
to complete sending in ballot papers for the MP election process in 2005.

THP, directed by His Excellency  Pol.Lt.Col. Prime Minister Thaksin Shinawatra,
cooperated with the National Institute for Brain-based Learning (NBL) to dispatch morale
booster packages, in the project for Newborn Babies Developing Practices; a project
which helps develop children’s brains. It carried out the dispatches and made deliveries
to hospitals nationwide on July 28, 2005, the period from which lasted 1 year.

Apparently, THP being acknowledged as a high potential leader in acceptance and
dispatching of documents and items sent by post, it possesses a nationwide network and
has been confided in by the government and private sectors. The Ministry of Information
and Communication Technology (MICT), as a supervisory unit, has thus instructed THP to
play a part in the government’s energy saving policy. Accordingly, THP introduced a
“Messenger Post”, dispatching

acceptance staff and post vans to collect postal items at the government’s premises,
making express delivery to recipients, as set out in the agreed timeframe, at wholesale
price. At present, the service is entertained in 5 governmental sectors.

Society-Based Activities

In honor of HRH Princess Maha Chakri Sirindhorn-president of the Sai Jai Thai Foundation
on her 50th birthday anniversary, as well as in celebrating the Foundation’s 30th anniversary
of establishment, THP donated 1 million baht at her own disposal to help promote the
project “Uniting Thai for Sai Jai Thai Foundation”.

In addition, THP was assigned by the MICT to support lasting reforestation in honor of His
Majesty the King’ 50th coronation celebration, totaling 5,000 rai (8,000,000 square meters),
equaling an estimate value of 15 million baht. It donated some 10 million baht to the
National Park, Wildlife and Plant Conservation Department to contract out the process on
its behalf. Another 5 million baht would be donated the following year. Likewise, THP
accepted donations for the tsunami-ravaged South at post offices all over the country. To
help, relieve the tsunami-devastated provinces, THP collected contributions from its staff
in support of the recovery foundation to help build houses for those affected. In
remembrance of the tsunami’s 1st anniversary, THP issued stamps looking back on the
incident, inviting interested public to send it self-drawn drawings entitled “Remembering
Thai Mettle in the Tsunami Chronicle”. This aimed at lauding all hands given to the tsunami
victims, regardless of nationalities. The award of 70,000 baht would be given out to the
winner.

To encourage Thai younger generations to partake in conserving energy, THP joined
with the Energy Planning and Policy Office (EPPO) holding a contest of writing on a
postcard during the event of International Letter Writing Week on “The Way I Conserve
Energy”  vying for 12 educational funds.