Report of performance for June 30, 2008 compared 2007

Translation August 14, 2008 Subject: Report of performance for the period ended June 30, 2008 compared with June 30, 2007 Attention: Managing Director The Stock Exchange of Thailand Dusit Thani Public Company Limited hereby reports the performance for the three-month and six-month periods ended June 30, 2008 compared with the same periods ended June 30, 2007 as presented in the consolidated statement of income according to the presentation of financial statements identified in Thai Accounting Standard No. 35, as follows: Operating results For the three-month period ended June 30, 2008, the operations of the Company and subsidiaries had net profit of Baht 131.55 million. After attributing net profit to minority interest of Baht 2.84 million, net profit of the Company was Baht 128.71 million (increased from the same period of last year by Baht 172.73 million), resulted from operating loss of Baht 28.12 million and gain on sales of land after deducting expenses and taxes of Baht 156.83 million. For the six-month period ended June 30, 2008, the operations of the Company and subsidiaries had net profit of Baht 242.51 million. After attributing net profit to minority interest of Baht 7.64 million, net profit of the Company was Baht 234.87 million (increased from the same period of last year by Baht 144.62 million), resulted from operating profit of Baht 78.04 million and gain on sales of land after deducting expenses and taxes of Baht 156.83 million. 1. Revenue from sales and services For the six-month period ended June 30, 2008, revenues from sales and services increased from the same period of last year by Baht 205.45 million, or 14%, which resulted from the complete of renovation of every hotel in the group that cause the revenue from the hotel business increased, mainly from these 2 hotels; Dusit Thani Manila in Philippines increased by Baht 92 million and Dusit Thani Bangkok increased by Baht 51 million. 2. Management service income For the six-month period ended June 30, 2008, management service income increased from the same period of last year by Baht 6.14 million, or 10% because the Company has strategic by focusing to increase number of management hotels in order to reduce future expenses. In 2007, the Company has expanded the management business both in Thailand and overseas, therefore having technical service income received from projects in New Cairo, Egypt, the Eight Heaven, Phang Nga and dusitD2, Samui and management service income from service apartment in Dubai, United Arab Emirates. -1- 3. Gain on sales of property, premises and equipment In May 2008, the Company had sold land in Chiang Mai, and had gain after deducting expenses and taxes of Baht 156.83 million. 4. Interest income For the six-month period ended June 30, 2008, interest income decreased from the same period of last year by Baht 4.69 million, or 61% because the Company and subsidiaries had repaid loan principals and used fund for renovating the hotels, as such deposit at financial institutions decreased and interest income decreased accordingly. 5. Cost of sales and services The Company and subsidiaries had cost of sales and services amounted to Baht 847.54 million, or 51% of revenue from sales and services. The portion similar to the same period of last year, which had cost of sales and services amounted to Baht 763.11 million, or 52% of revenue from sales and services. 6. Selling and administrative expenses Reference to the re-branding of the Company to distinct in business including management restructure to support the expansion of business in future, therefore, in 2007, the Company and subsidiaries had more expenses in advertising and promotion expenses for this re-branding, implement and development of central reservation system, and employee expenses. In addition, the expenses of Le Cordon Bleu Dusit Co., Ltd., culinary school, had set up the company on August 11, 2006 and the school was opened in August 2007. As such, the selling and administrative expenses of the Company were amounted to Baht 493.92 million, increased from the same period of last year by Baht 79.40 million. 7. Depreciation and amortization After the renovation of hotels under Dusit and Royal Princess Groups were completed and started calculating depreciation, therefore, depreciation of the Company and subsidiaries for the six-month period ended June 30, 2008 was amounted to Baht 298.93 million, increased by Baht 56.45 million, or 23% from the same period of last year which was Baht 242.48 million. 8. Interest expenses The Company and subsidiaries had interest expenses amounted to Baht 37.27 million, decreased from the same period of last year by Baht 8.86 million, or 19%. Such interest was paid to financial institutions for borrowings of the Company and subsidiaries for their hotel renovation. During the year, the Company and subsidiaries partially repaid their loan principals, as such, interest expenses decreased. 9. Income tax The income tax presented in financial statements for the three-month and six-month period ended June 30, 2008 is calculated at the rate of 30%. -2- Financial position The consolidated balance sheet of the Company and subsidiaries as of June 30, 2008, total assets was Baht 6,148.33 million, decreased from the balance as of December 31, 2007 by Baht 366.89 million. The major decrement resulted from the non-current assets; property, premises and equipment - net because depreciation increased and the amortization according to the lease agreement of prepaid rental of land and buildings exceeding of year - net that caused amount of such asset decreased. During the period, there was repayment in principal of long-term loans, as such total liabilities as of June 30, 2008 was Baht 1,861.36 million, decreased from the balance as of December 31, 2007 by Baht 540.12 million. The debt to equity ratio was 0.46:1. In addition, the unappropriated retained earnings was Baht 1,413.74 million, and book value was Baht 48 per share. Additional clarification According to the new and amendments to Thai Accounting Standards (TAS) by the Federation of Accounting Professions which are mandatory for the accounting periods beginning on or after January 1, 2008 as described in Note 1.10 to the financial statements, the Company's management assessed and determined that the revised TAS do not impact significantly to the financial statements being presented, except TAS 35 "Presentation of financial statements" has affected the presentation of minority interest and other disclosures as discussed in Note 2 to the financial statements for the period ended June 30, 2008. In addition, as described in Note 23 to the financial statements, according to the Royal Decree regarding the deduction of corporate income tax (No.475) dated July 29, 2008; it reduces the corporate income tax for a listed company on the Stock Exchange of Thailand under the Securities and Exchange law. Net profit which does not exceed Baht 300 million is subject to tax at the rate of 25%. The new tax rate is effective for three consecutive years for the accounting periods beginning on or after January 1, 2008. The effect on the deduction of corporate income tax has not yet been reflected on the financial statements. An estimate of the financial effect on a new tax rate will be as follows: For the three-month For the six-month period ended period ended June 30, 2008 June 30, 2008 Corporate Income tax decreases (8.37) million Baht (15.00) million Baht Net profit increases 8.37 million Baht 15.00 million Baht Basic earnings per share increases 0.10 Baht per share 0.18 Baht per share Yours faithfully, Mrs. Sinee Thienprasiddhi Director and Secretary to The Board of Directors -3-