NOTICE THE NET PROFIT FOR THE SECOND QUARTER ENDED

August 14, 1998 Subject : Notice that the difference between the net profit for the quarter ended June 30, 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 second quarter ended June 30, 1998, show that Dusit Thani Public Co., Ltd. generated Baht 565.48 million and Baht 516.78 million respectively in net profit, compared with Baht 35.46 million for the quarter ended June 30,1997. The details are as follows : 1. The Dusit Thani, Bangkok and Outside Restaurants - The Dusit Thani Hotel increased its net profit before tax by Baht 14.5 millions due to the Baht 2.7 million increase in other revenues as well as the Baht 12.02 million decrease in costof sales and services. - Outside Restaurants : Le Jardin Restaurant and Sichuan Restaurant. These restaurants decreased their net profit before tax by Baht 0.5 milliom because of the decrease in total revenue from sales and services by Baht 6 millions and in cost of sales and services by Baht 5.5 millions. 2. Dusit Resort, Pattaya The increase of total revenues from sales and services by Baht 23.02 million and of other revenues by Baht 7.8 million together with the Baht 4 million decrease in cost of sales and services increased the net profit before tax by Baht 34.9 millions. 3. Hotel Management The net profit before tax from the hotel management business increased by Baht 21.6 million due to the increase by Baht 16.49 million in the hotel management revenues, which is resulted from the increasing of the revenue of hotels under management. 4. The interest expenses decreased by Baht 38.74 million. 5. The profit from foreign exchange gain. The foreign exchange gain relating to US$ 8.6 million in unhedged loan principal is Baht 63.19 million. The Company was required to record this gain to confrom with generally accepted accounting principles. 6. The net profit from commercial buildings decreased Baht 2.9 million due to the Baht 3.8 million decrease in total revenue. 7. The head office administrative expenses increased Baht 1.4 million. 8. In the cost method financial statements for the quartered ended March 31, 1998, the Company posted a net deficit, thus the Company was not charged for the income tax in the secondquarter ended June 30, 1998, compared with Baht 4.9 million in income tax in the same period last year. 9. The profit from disposal of assets in associated and subsidiary companies. In confromity with generally accepted accounting principles, the Company was required to record an extraordinary gain of Baht 375.8 million from the sale of its stake in Dusit Sindhorn Co., Ltd. From 1995 until March 31, 1998, Dusit Sindhorn C o., Ltd. had accumulated retain deficit which was attributable to the Company following its investment ratio. Thus the Company's investment value in the consolidated financial statements decreased. The Company's actual gain on investment was only Baht 6.3 million. Moreover, Dusit Thani Delaware Co., Ltd., subsidiary company, recieved the attribution from the selling of The Melrose Hotel caused the Company's profit increased Baht 92.4 million. 10. Philippine Hoteliers, Inc. The increase in net profit by Baht 0.26 millions resulted from an increase in Philippine Hoteliers, Inc.'s total revenues from sales and services by Baht 135.7 million, and Baht 5.8 million in other revenues attributable to the Company, which owns a 85.76% stake in Philippine Hoteliers, Inc. 11. Dusit Sindhorn Co., Ltd. For the quartered ending March 31, 1998, Dusit Sindhorn Co., Ltd. posted a net loss of Baht 155 million. Because the Company sold its stake in Dusit Sindhorn Co., Ltd. on March 31, 1998. In second quarter of 1998, Dusit Thani Public Co., Ltd. still presented a charge form the first quarter of Baht 82.4 million relating to this investment. 12. Royal Princess Public Co., Ltd. and Subsidiary Company The total revenues from sales and services for the quarter ended June 30,1998 insignificant decreased from the prior year. But the net loss increased Baht 21.7 millions from the same period in 1997. Since Korat Thani Co., Ltd. and Supsinthanee Co., Ltd., subsidiaries company, had the expense associated with the forward contract on foreign loans and the increase in interest expense. 13. Dusit Resort Cha-Am Co., Ltd. DusitResort And Polo Club, the hotel, generated higher net profit by Baht 13.4 miilion due to Baht 23.3 million increaseintotal revenues from sales from sales and service, and Baht 1.3 million increase inother revenues But Dusit Resort Cha-Am Co., Ltd. recorded a net loss of Baht 21.8 million, which compares to a net loss of Baht 3.04 million in the same period last year, due to the expenses associated with the forward contact on foreign loans, and the increase in interest expense, as well as the decrease in interest revenue. Khunying Chanut Piyaoui Chairperson and Executive Director