Report of performance for the year 2005 compared with 2004

Translation Date: March 1, 2006 Subject: Report of performance for the year ended December 31, 2005 compared with December 31, 2004 Attention: Managing Director The Stock Exchange of Thailand Dusit Thani Public Company Limited hereby reports the performance for year 2005 compared with 2004 according to the consolidated statements of income as follows: 1. The Performance of the Consolidated Financial Statements For year 2005, the Company and subsidiaries had net income of Baht 245.11 million, earnings per share was Baht 3 per share, increased from income before extraordinary item of year 2004 by Baht 32.79 million, or 15%. For year 2004, there was an extraordinary item resulted from debt restructuring of subsidiary, Korat Thani Corporation Limited, of Baht 364.07 million which made net income for year 2004 was Baht 576.39 million. 2. Revenues from sales and services For year 2005, the hotel business under the Company and subsidiaries were better than year 2004. The Company spent high budget in renovating to modern hotels in order to satisfy their customers, such as the Executive Club Lounge, guest rooms for business persons, including internet services and conference rooms for their business. Moreover, the Company was interested in training business to develop the employees who are the essential persons of service business. Dusit Executive Development Center Co., Ltd. was corporate in order to provide training courses to employees of the Company, subsidiaries and public. The Company continuously maintained the marketing campaign, advertising and promotion. The mentioned reasons made the Company had revenues from sales and services increased form prior year by Baht 234.33 million, or 10%, detailed as follows: The revenues of the Company's hotels increased by Baht 187.56 million consisted of the following: - Dusit Thani Hotel: the revenues increased by Baht 75.07 million, or 12%. - Dusit Resort Pattaya: the revenues increased by Baht 46.10 million, or 12%. - Dusit Resort Hua Hin: the effects of Tsunami in late December 2004 that caused the tourists who love to travel to the Andaman side, the South of Thailand, especially in Phuket, Krabi and Phang-nga changed their route to the East coast of Thailand in January 2005 and February 2005. In addition, in July 2005, the Royal Dusit Hall, 880 square mater conference room which capacity of 1,200 persons was completed and opened for catering and seminar that made the hotel's revenues increased by Baht 66.39 million, or 24%. The revenues of subsidiaries hotels increased by Baht 46.77 million consisted of the following: - Dusit Hotel Nikko Manila: After the change in strategy and marketing campaign, the hotel's revenues increased by Baht 56.35 million, or 11%. Hotels under Royal Princess Group comprised of Royal Princess Larnluang, Royal Princess Srinakarin, Royal Princess Chiangmai and Royal Princess Korat. On August 13, 2005, Royal Princess Chiangmai had a minor fire accident resulted from short circuit of electricity in the office on the level 2 and on August 14, 2005, Chiangmai was affected by flood that caused the hotel temporally closed. However, the total revenues of 4 hotels for year 2005 increased by Baht 3.93 million, or 0.80%. D2hotel Chiangmai is under Dusit Hotels and Resorts Co., Ld., which is a new brand of Dusit group, 5 stars hotel with size and number of guest room are less than other hotels in Dusit group, but modernizes and very convenience. It had an un-officially operated in November 2005. As such, the revenues for year 2005 were not much. However, the guests satisfied in its services. Devarana Spa Co., Ltd. operates spa services, namely Devarana Spa, the leading Spa which is very popular among Spa lovers from local and overseas. Currently, there are 4 branches located in Bangkok, Pattaya, Hua Hin/Cha-am and the latest branch: in Chiangmai, which had an un-officially opened on December 28, 2005. For year 2005, the Spa's revenues decreased by Baht 5.63 million, or 10%, resulted from Devarana Spa Bangkok, which was already opened for 4 years, had to be renovated during July - August 2005 that made its revenues decreased during such period. 3. Management service income The Company had management service income for year 2005 increased from prior year by Baht 2.94 million, or 2%, resulted from the hotels under Dusit and Royal Princess management had better operations. 4. Dusit office building In October 2005, the building has been started renovating and re-organizing the lease areas by re-allocating and increasing the rental area of each unit. The small, current lessee then cancelled lease agreement before expiry date. Accordingly, such revenue for year 2005 decreased by Baht 4.40 million, or 16%. 5. Interest income The Company had interest income for year 2005 totalling Baht 2.76 million, decreased from prior year by Baht 5.14 million, or 65%, resulted from the use of fund for renovating the hotels, so the fund for investing in financial institutions for interest earn decreased. 6. Cost of sales and services For year 2005, the Company and subsidiaries had cost of sales and services totalling Baht 1,351.65 million, or 52% of revenues from sales and services, which closed to cost of sales and services for year 2004, Baht 1,254.32 million, or 53% of revenues from sales and services. 7. Selling and administrative expenses For year 2005, the Company and subsidiaries had selling and administrative expenses of Baht 731.66 million, increased from year 2004 by Baht 143.41 million (year 2004 Baht 588.22 million). The major reason is for year 2005, the Company paid income tax to Revenue Department for assessment for years 2000, 2001 and 2002 totalling Baht 25.90 million, pre-opening expenses of D2hotel Chiangmai of Baht 42.76 million, expenses for office at United Arab Emirates, to expand the business in such region, of Baht 5.50 million, property tax increased Baht 7.06 million. In addition, the Company and subsidiaries had marketing and promotion expenses increased by Baht 55 million, especially at Dusit Thani Bangkok had advertising and promotion for Miss Universe Pageant Contest totalling Baht 10 million. Furthermore, Dusit Hotels and Resorts Co., Ltd., the management company had employed more staff in order to expand its business, such expenses was Baht 2.22 million. 8. Depreciation and amortization For year 2005, the major renovation of Dusit Thani Bangkok and other hotels were mostly completed and started depreciating. Accordingly, the Company and subsidiaries had depreciation for year 2005 of Baht 361.81 million, increased by Baht 74.13 million, or 26%. 9. Interest expenses For year 2005, the Company had interest expenses totalling Baht 19.74 million, decreased by Baht 30.41 million, or 61%, resulted from year 2004, Korat Thani Corporation Limited had interest expenses and entered into debt restructure agreement and such investment was sold to the third party in December 2005. The interest expenses for year 2005 resulted from the borrowing from financial institutions of the Company and subsidiaries for hotels renovation. 10. Income tax For year 2005, the Company and subsidiaries had income tax totalling Baht 61.74 million, decreased from prior year by Baht 10.09 million, or 14%, major resulted from the pre-opening expenses of D2 hotel. In addition, on February 25, 2006, the Company has signed the hotel management agreement with Bailann Resort Co., Ltd. located at 111/1 Moo 1, Tambon Koh Chang Tai, King-Amphur Koh Chang, Trad 23170. The Company will supervise it starting from its designation and will receive the technical service fee. After such hotel is operated, the Company will receive the management fee, incentive fee and marketing fee. This hotel is namely, Princess Resort Koh Chang.