NOTICE THE DIFFERENCE THE NET PROFIT FOR YEAR ENDED 1998

March 2, 1999 Subject : Notice that the difference between the net profit for the year ended December 31, 1998 and the same period last year exceeds 20% To : Directors and Manager of the Stock Exchange of Thailand The consolidated and equity method financial statements for the year ended December 31, 1998, show that Dusit Thani Public Co., Ltd. generated a net profit of Baht 564.34 million and Baht 673.03 million respectively, compared with a net loss of Baht 1,348.05 million and Baht 1,185 million respectively for the year ended December 31, 1997. The details are as follows: 1. The Dusit Thani, Bangkok and Outside Restaurants - The Dusit Thani Hotel decreased its net profit before tax by Baht 2.7 million because of the decrease in total food and beverage revenue by Baht 38 million, partially offset by an increase in room revenue of Baht 26 million. - Outside Restaurants: The net profit before tax from Le Jardin Restaurant and Sichuan Restaurant decreased by Baht 1.6 million. 1. Dusit Resort Pattaya The net profit before tax increased by Baht 51 million due to an increase in total revenue of Baht 51 million while the cost of sales and services increased by only Baht 11 million. 2. Dusit Resort & Polo Club, Cha-am On October 1, 1998, Dusit Resort & Polo Clubs operations were transferred from Dusit Resort Cha-am Co., Ltd. to the Company, therefore Baht 9.7 million in net profit before tax from this hotel for the fourth quarter ended December 31, 1998 was shown in the Companys financial statements. 3. Other revenues - Hotel Management Business: the net profit before tax from the hotel management business increased by Baht 52.5 million. - The Commercial Building: the net profit before tax from the Dusit Thani Office Building decreased by Baht 5.9 million due to a Baht 7.7 million decline in total revenue. 5. Subsidiary Companies 5.1 Philippine Hoteliers, Inc. The net profit before tax from the hotel business increased Baht 5.1million. 5.2 Dusit Resort Cha-am Co., Ltd. The net loss decreased by Baht 33.2 million from the same period in the previous year. Since Dusit Resort & Polo Clubs operations were transferred from Dusit Resort Cha-am Co., Ltd. to the Company on October 31, 1998. Dusit Resort Cha-am Co., Ltd.s financial statements for the year ended December 31,1998 recorded the result from Dusit Resort & Polo Clubs operation for only the nine month period from January 1 to September 30, 1998, while Dusit Resort Cha-am Co., Ltd.s financial statements for the year ended December 31,1997 recorded the result from Dusit Resort & Polo Clubs operations for the whole year of 1997. 5.3 Royal Princess Public Co., Ltd. and Subsidiary Companies - Royal Princess Public Co., Ltd.: The net profit before tax decreased by Baht 11.8 million. - Subsidiary Companies: Korat Thani Co., Ltd. and Supsinthanee Co., Ltd. increased their net loss by Baht 16.7 million. 6. The interest expense decreased Baht 30.9 million, while the interest income increased Baht 47.7 million. 7. Extraordinary Income - Foreign Exchange Gain: For the year ended December 31, 1997, the Company posted Baht 1,033 million in foreign exchange losses. For the year ended December 31, 1998, the Company posted Baht 89 million in net foreign exchange gain. - The net profit from disposal of shares in Dusit Sindhorn Co., Ltd.: In conformity with generally accepted accounting principles, the Company was required to record an extraordinary profit of Baht 376 million from the sale of its stake in Dusit Sindhorn Co., Ltd.. From 1995 until March 31, 1998, Dusit Sindhorn Co., Ltd. had accumulated a retained deficit which was attributable to the Company following its investment ratio. Thus the Companys investment value in the consolidated financial statements decreased. The Companys actual gain on investment was only Baht 6.3 million. - The net profit from disposal of shares in Dusit Thani Delaware Co., Ltd: the Company received it proportional proceeds from the sale of the Melrose Hotel, which caused the Company to record a one-time gain of Baht 92.4 million. 6. The Net Loss of Subsidiary Companies - Dusit Sindhorn Co., Ltd.: For the quarter ended March 31, 1998, Dusit Sindhorn Co., Ltd. posted a net loss of Baht 155 million. The Company recorded a charge for the first quarter of Baht 82.4 million relating to this investment, since the Company sold its stake in Dusit Sindhorn Co., Ltd. on March 31, 1998. - Other net loss: The net loss from other subsidiary companies totals Baht 10 million. 6. The Allowance for Diminution of Securities The Company reserved Baht 17 million for the allowance for diminution of other securities which are not listed 0n the Stock Exchange of Thailand. Finally, the difference in the amount of Baht 54 million between the consolidated and equity method financial statements resulted from the net loss of subsidiaries in the excess of the Companys investment. Sincerely yours, Sinee Thienprasiddhi Director and Secretary to the Board of Directors