FORM 57 (Y2K) ENGLISH VERSION

Y2K Compliance Program Supplemental Report to SET Dusit Thani Public Co., Ltd. operates the hotel business and has full hotel management contracts. The Head Office is located on 946 Rama IV Road, Silom, Bangrak, Bangkok, the telephone number is 636-3600, and the facsimile number is 636-3630. The Company+s Y2K compliance program report # 1/1998 as of August 31, 1998 is as follows : Introduction This document is a supplemental report to the Y2K Compliance Program submitted earlier to SET. It reflects the company+s readiness for resolving the Y2K computer problems. 1. Business Impact Analysis A business impact analysis was performed on the entire group in order to determine the outcome of the Y2K computer problems and the impact that could occur to the company+s businesses. The analysis uses the following procedures: 1.1 Inventory Assessment of all Y2K related components Y2K affected System components are divided into four categories; - Front Office Components - Back Office Components - Building Infrastructure - Telecommunication Equipment Analysis was conducted on each of the components to determine whether it is Y2K compliant. Components are then sorted under the following categories: - Purchased components - Customized Components from outside source - In-house made components Vendors for all purchased components including hardware and software were contacted and Y2K compliance certification was requested. Outside vendors were also contacted to provide Y2K compliance certification for custom made components. Finally, in-house made components were investigated and resolution plans are in progress. Roles and responsibilities were assigned during the company+s Y2K workshop, which took place August 24-25, 1998 at the company headquarters. Three levels of Y2K compliance management teams were organized: - Y2K Management Committee This committee is the top-level executive committee consisting of the general managers of all hotels & properties, chaired by the Company Chief Operating Officer (COO). One representative from the Board of Directors is also acting as the committee advisor to expedite the corrective action process. Further, a technical advisor is also on the committee to provide technical focus and advice. This committee has a total of twenty-five members. - Hotel-level Management Team This team consists of managers and/or department heads, chaired by the General Manager, of the hotel to oversee the Y2K compliance program. This management team is responsible for the reporting of the Y2K compliance program status on a monthly or as needed basis. This group consists of eighty-eight members. - Y2K Technical Support Team A technical support team consisting of nine members with expertise in each of the operational fields was assigned to assist in the coordination and consultation for Y2K project efforts. 1.2 Cost Assessment Comprehensive analysis of the current status of hardware, software and other systems has resulted in the creation of an inventory database which has provided the basis for determining overall costs. This will provide the justification to request budget approval from the Board of Directors. 1.3 Renovation/Replacement Affected Y2K components are either under evaluation to either renovate or replace, depending on the overall system failure analysis from test results. The target completion date is the end of 1998. 1.4 Simulation and Test Throughout the remainder of 1998 and during 1999, the Company will be conducting simulation and testing of the new renovated, repaired, and /or modified components. Actual data will be used to determine any side effects or domino effect of generated errors. Failure analysis will be performed to determine any latent errors and fault conditions. 1.5 Emergency and Contingency Planning An emergency plan will be established for both equipment and manpower to handle any unexpected failures under normal business operation. Special attention will be given to customer health and safety factors. On-going emergency drills will be conducted per set schedule. 2. Business Continuity Resolution of all Y2K related issues by the target date in 1999 will ensure business as usual. Investigation and analysis of the Company+s Y2K affected inventory revealed the following: 2.1 Computer related problems The major system component in the hotel business is the Property Management System (PMS). The PMS consists of the components listed below: - Front Office computer system - Back Office computer system - Point of Sale (POS) system All of the above systems were procured from outside sources (both hardware & software). Workshops with the vendors were conducted and resolutions were determined. The total renovation cost estimates has been established. 2.2 Company Legal Liability It was determined from investigation that no legal issues regarding Y2K problems were evident at this time. 2.3 Communication Problem Since 1995, the Company has established all communication and information systems within the Company as well as with customers and business associates using electronic mail on the internet. It was determined from analysis that no business impact existed regarding the Company+s communication and information system. 3. Y2K Resolution Planning A Y2K Project Master Plan has been developed and put in place with a completion target date of June 1999. 4. Current Y2K Compliance Program Status The current status of the Y2K compliance program is at the end of the cost assessment phase. The decision to take the appropriate corrective action on the Y2K affected systems will be accomplished by the high level executive management by the end of September 1998. Y2K Teams for all hotel properties will be in place by end of September 1998. 5. Company Executive Report Investigation and analysis performed on the entire group revealed that the company will spend less than 10 million Baht on the Y2K compliance program. All systems will be ready for the year 2000 and business will be continued as normal. Emergency procedures will be placed and manpower will be completely trained and ready to take necessary action. It is not anticipated that there will not be any adverse effect on shareholder equity value since all Y2K issues have been addressed in the Master Plan and cost shall not exceed 5 % shareholder equity value.