Report of performance for Sep. 30, 2006 compared with 2005

Translation November 13, 2006 Subject: Report of performance for the quarter and nine-month period ended September 30, 2006 compared with September 30, 2005 Attention: Managing Director The Stock Exchange of Thailand For the third quarter of year 2006, the Company had income before interest and income tax amounted to Baht 117.25 million, increased from the same quarter of last year by Baht 82.97 million, or 242.04%. After deducting interest expense and income tax of Baht 63.13 million, the income after income tax was Baht 54.12 million. As a result, net income after minority interest of Baht 20.76 million was Baht 33.36 million, increased from the same quarter of last year by Baht 12.83 million or 62.49%. For the nine-month period of year 2006, the Company had income before interest and income tax amounted to Baht 337.68 million, increased from the same period of last year by Baht 106.05 million, or 45.78%. After deducting interest expense and income tax of Baht 160.27 million, the income after income tax was Baht 177.41 million. Net income after deducting minority interest of Baht 33.67 million was Baht 143.74 million, decreased from the same period of last year by Baht 10.44 million, or 6.77%. The net income presented in the statement of income for the quarter and nine-month period ended September 30, 2006 consisted of the following: 1. Revenue from sales and services The owned hotels under Dusit Group and Royal Princess Group had revenues from sales and services increased from the same quarter of last year by Baht 50.90 million, or 8.85% and increased from the same nine-month period of last year by Baht 212.22 million, or 11.50% after the renovation of guest rooms, restaurants, function and conference rooms. In addition, D2hotel Chiang Mai, the new trendy hotel under Dusit Hotels and Resorts Co., Ltd. had soft opening in November 2005 and its revenues for this quarter was Baht 14.94 million and for the nine-month period was Baht 41.18 million. 2. Management service income The Company and subsidiaries had management service income decreased from the same quarter of last year by Baht 1.92 million, or 7.44% and increase from the same nine-month period of last year by Baht 16.25 million, or 19.84% which were resulted from the better revenues of hotels under Dusit and Royal Princess Groups and subsidiaries. However, the operating income of several hotels dropped in September 2006. 3. Compensating income from terminating agreement For the quarter and nine-month period ended September 30, 2006, Royal Princess Public Company Limited, a subsidiary, and the engaging party agreed to terminate the hotel management agreement prior to the expiry date, and entered into a franchise agreement under the brand "Royal Princess". Such franchise agreement is in effect from September 1, 2006 to March 31, 2013. In which Royal Princess Public Company Limited would receive franchise fee as specified in the agreement. As a result of early management agreement terminated, the engaging party compensated of Baht 113.28 million to Royal Princess Public Company Limited. Therefore, the statement of income for this period-end presented such amount of income which is not occurred from the normal operations. 4. Cost of sales and services For the quarter ended September 30, 2006, the Company and subsidiaries had cost of sales and services amounted to Baht 355.37 million, or 56.74% of revenue from sales and services, which its portion similar to the same period of last year, which had cost of sales and services amounted to Baht 329.57 million, or 57.27% of revenue from sales and services. For the nine-month period ended September 30, 2006, the Company and subsidiaries had cost of sales and services amounted to Baht 1,068.81 million, or 51.95% of revenue from sales and services, which its portion similar to the same period of last year, which had cost of sales and services amounted to Baht 969.18 million, or 52.52% of revenue from sales and services. 5. Selling and administrative expenses For the quarter ended September 30, 2006, the Company and subsidiaries had selling and administrative expenses amounted to Baht 188.88 million, or 23.87% of total revenues, compared to the same quarter of last year, selling and administrative expenses was Baht 162.90 million, or 26.29% of total revenues. Therefore, the selling and administrative expenses increased by Baht 25.98 million. For the nine-month period ended September 30, 2006, the Company and subsidiaries had selling and administrative expenses amounted to Baht 570.93 million, or 24.29% of total revenues, compared to the same period of last year, selling and administrative expenses was Baht 519.62 million, or 26.17% of total revenues. Therefore, selling and administrative expenses increased from the same period of last year by Baht 51.31 million. The major increase resulted from the Dusit Resort Pattaya had renewed the land lease agreement in January 2006 with higher rental rate, so that its rental expense for the nine-month period increased by Baht 12.85 million. In addition, the expenses of Dubai Office in United Arab Emirates for business expansion in the Middle East rose by Baht 4.96 million, oversea promotion, marketing and other expenses to support the business expansion increased by 25.65 million and selling and administrative expenses of D2hotel increased by Baht 7.85 million. 6. Depreciation and amortization expenses Early year 2006, most of renovation for hotels under Dusit Group were completed, hotels under Royal Princess Group were partially completed, and D2hotel had soft opening in late 2005. Therefore, the Company and subsidiaries started to book depreciation for new renovation and D2. The depreciation for the nine-month period ended September 2006 amounted to Baht 367.46 million, increased by Baht 108.42 million, or 41.85%. 7. Interest expenses For the nine-month period ended September 30, 2006, the Company and subsidiaries had interest expenses amounted to Baht 56.26 million, increased from the same period of last year by Baht 45.92 million. Such interest was paid to financial institutions for borrowing of the Company and subsidiaries for their hotel renovation. Balance Sheet Total assets of the Company and subsidiaries as of September 30, 2006 was Baht 5,978.80 million, increased from the balance as of December 31, 2005 by Baht 346.81 million, whereas for liabilities, total liabilities increased by Baht 281.91 million. The calculation of debt to equity ratio was 0.57:1. In addition, the unappropriated retained earnings was Baht 729.37 million, and book value was Baht 44.16 per share.