Notice of accidental fire and flooding problem at Chiang Mai

Translation August 17, 2005 Subject: Notice of accidental fire and flooding problem at Royal Princess, Chiang Mai; and also flooding problem at D2hotel, Chiang Mai To: Directors and Managers The Stock Exchange of Thailand Royal Princess, Chiang Mai On August 13, 2005, Royal Princess, Chiang Mai had a minor accidental fire caused by electrical short circuit that broke out on the 2nd floor, inside the Executive Office of the Royal Princess building, of which the hotel is under Royal Princess Public Co., Ltd., and the next day the hotel was inundated by water caused by the flash flood that is affecting most parts of the Northern region. As a result, The Royal Princess Hotel Management has decided to temporarily close the hotel for a period of two weeks, starting from August 15, 2005. In this regard, Royal Princess, Chiang Mai is insured against fire, flood disaster and business interruption. The hotel is now conducting an evaluation survey for damage and loss. The company expects that the insurance will sufficiently cover all damages and losses from the abovementioned fire and flooding setbacks. D2hotel, Chiang Mai The flash flood has affected D2hotel, Chiang Mai, which is under Dusit Hotels and Resorts Co., Ltd.. Presently, the hotel is under renovation. The basement area about 4 meters deep is covered in water. However, D2Hotel is insured for the entire duration of its renovation period. The hotel is now conducting an evaluation survey for damage and loss. The company expects that the insurance will sufficiently cover all damages and losses due to the flooding. Upon completion of the evaluation survey for the two hotels, another report will be submitted to the SET. Please be informed accordingly. Sincerely yours, (Mrs. Sinee Thienprasiddhi) Director and Secretary to the Board of Directors