FINANCIAL STATEMENT FOR PERIOD ENDED JUNE 30,1999

The interim financial statements have been subjected to a review DUSIT THANI PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF INCOME AND RETAINED EARNINGS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, UNAUDITED Baht :000 1999 1998 1999 1998 REVENUES Revenue from sales and services 1,087,365 1,217,837 577,572 501,724 Other income Management service income 42,370 43,863 44,997 50,382 Interest income 11,613 39,877 9,671 36,254 Gain on sale of investments (Note 9) 30 468,177 15 375,771 Gain on exchange 8,734 42,860 - 63,430 Other 52,577 52,345 36,940 29,538 Total Revenues 1,202,689 1,864,959 669,195 1,057,099 EXPENSES Cost of sales and services 573,308 635,153 283,959 244,715 Selling and administrative expenses 252,687 332,203 130,416 135,161 Depreciation and amortization 165,789 174,248 81,756 62,001 Interest expenses 45,485 105,004 9,473 31,408 Directors remuneration 755 614 150 240 Loss on exchange - - 384 - Total Expenses 1,038,024 1,247,222 506,138 473,525 INCOME BEFORE EQUITY IN SUBSIDIARY AND ASSOCIATED COMPANIES AND MINORITY INTEREST 164,665 617,737 163,057 583,574 EQUITY IN UNDISTRIBUTED NET LOSS OF SUBSIDIARY AND ASSOCIATED COMPANIES - (92,376) (1,338) (18,090) MINORITY INTEREST IN NET LOSS OF SUBSIDIARY COMPANIES 6,393 16,981 - - INCOME BEFORE INCOME TAX 171,058 542,342 161,719 565,484 INCOME TAX (8,844) (20,095) - - NET INCOME 162,214 522,247 161,719 565,484 DUSIT THANI PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF INCOME AND RETAINED EARNINGS (CONTINUED) FOR THE SIX-MONTH PERIOD ENDED JUNE 30, UNAUDITED Baht :000 CONSOLIDATED THE COMPANY ONLY 1999 1998 1999 1998 DEFICIT BROUGHT FORWARD As previously reported (730,400) (1,131,686) (458,659) (1,131,686) Less Adjustments for effect on prior year of applying retroactively the new method of accounting for recognition of subsidiaries loss - (163,058) - - ADJUSTED DEFICIT (730,400) (1,294,744) (458,659) (1,131,686) NET INCOME 162,214 522,247 161,719 565,484 DEFICIT CARRIED FORWARD (568,186) (772,497) (296,940) (566,202) EARNINGS FOR THE SIX-MONTH PERIOD PER SHARE BAHT 1.91 6.14 1.90 6.65 See notes to the interim financial statements The interim financial statements have been subjected to a review DUSIT THANI PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE QUARTER ENDED JUNE 30, UNAUDITED Baht :000 CONSOLIDATED THE COMPANY ONLY 1999 1998 1999 1998 CASH FLOWS FROM OPERATING ACTIVITIES Net Income 46,063 47,060 45,045 75,309 Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization 79,823 77,708 38,749 32,543 Allowance for doubtful accounts 1,024 3,080 23 - Allowance for diminution in value of securities 6,500 - 4,000 - Unrealized loss (gain) on exchange (4,778) 61,636 (2,398) 10,647 Gain on sale of investments (30) (92,406) (15) - Minority interest in net loss of subsidiary companies (2,518) (15,051) - - Equity in undistributed net (income) loss of subsidiary and associated companies - 5,324 (559) (28,124) (Increase) Decrease in operating assets Net trade accounts and notes receivable 33,341 28,966 30,131 7,987 Inventories (897) 186 (1,356) 68 Other receivables 5,555 (858) 1,793 (3,112) Other current assets 21,645 (10,773) (2,702) (14,257) Other assets (4,382) 588 - - Increase (Decrease) in operating liabilities Trade accounts and notes payable (12,010) 23,886 (9,268) 1,246 Accrued expenses (2,661) (30,266) (11,480) 395 Accounts payable-construction (4) (6,372) - - Other current liabilities (3,226) 8,129 (7,769) 11,249 Net cash provided (used) by operating activities 163,445 100,837 84,194 93,951 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of investments of subsidiary company 30 123,143 15 - Cash payment for investments in subsidiary and other companies (27,500) - - (88) Cash payment for loan to subsidiary company - - (143) - Net increase in property, premises and equipment (26,141) (41,430) (10,352) (15,123) Net cash provided (used) by investing activities (53,611) 81,713 (10,480) (15,211) DUSIT THANI PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS (CONTINUED) FOR THE QUARTER ENDED JUNE 30, UNAUDITED Baht :000 CONSOLIDATED THE COMPANY ONLY 1999 1998 1999 1998 CASH FLOWS FROM FINANCING ACTIVITIES Increase (decrease) in bank overdrafts and loans from financial institutions 40 (11,983) 3,265 (4,938) Increase (decrease) in loans from subsidiary companies - - (37) 91,080 Decrease in long-term liabilities (117,311) (646,268) (30,000) (604,939) Net cash provided (used) by financing activities (117,271) (658,251) (26,772) (518,797) Exchange differences on the translation of the financial statements of subsidiary companies 3,581 1,639 - - Net increase (decrease) in cash and cash equivalents (3,856) (474,062) 46,942 (440,057) Cash and cash equivalents as at April 1, 622,225 1,473,700 325,176 1,241,554 Cash and cash equivalents as at June 30, 618,369 999,638 372,118 801,497 See notes to the interim financial statements The interim financial statements have been subjected to a review DUSIT THANI PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, UNAUDITED Baht :000 CONSOLIDATED THE COMPANY ONLY 1999 1998 1999 1998 CASH FLOWS FROM OPERATING ACTIVITIES Net Income 162,214 522,247 161,719 565,484 Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization 165,789 174,248 81,756 62,002 Allowance for doubtful accounts 1,065 3,080 69 - Allowance for diminution in value of securities 6,500 - 4,000 - Unrealized loss (gain) on exchange 2,375 (42,860) 376 (63,429) Loss on the liquidation of subsidiary company 903 - 903 - Gain on sale of investments (30) (468,177) (15) (375,771) Minority interest in net loss of subsidiary companies (6,393) (16,981) - - Equity in undistributed net loss of subsidiary and associated companies - 92,376 1,338 18,090 (Increase) Decrease in operating assets Net trade accounts and notes receivable 55,033 71,392 51,522 24,051 Inventories 4,891 4,763 2,785 (374) Other receivables 900 13,361 (4,293) (1,268) Other current assets 1,638 (4,992) 1,432 (807) Other assets (9,417) 11,259 - - Increase (Decrease) in operating liabilities Trade accounts and notes payable (36,297) (50,381) (17,447) (11,604) Accrued expenses 30,836 (34,776) (16,375) (14,837) Accounts payable-construction (4) (10,408) - - Other current liabilities (24,542) (22,149) (47,066) (20,865) Net cash provided (used) by operating activities 355,461 242,002 220,704 180,672 DUSIT THANI PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS (CONTINUED) FOR THE SIX-MONTH PERIOD ENDED JUNE 30, UNAUDITED Baht :000 CONSOLIDATED THE COMPANY ONLY 1999 1998 1999 1998 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of investments of subsidiary and investments in associated companies 30 1,233,143 15 1,110,000 Cash received from the liquidation of subsidiary company 203 - 203 - Cash payment for investments in subsidiary and other companies (39,417) - (11,917) (88) Cash payment for loan to subsidiary company - - (143) - Net increase (decrease) in property, premises and equipment (49,232) 10,120 (17,156) (23,115) Net cash provided (used) by investing activities (88,416) 1,243,263 (28,998) 1,086,797 CASH FLOWS FROM FINANCING ACTIVITIES Decrease in bank overdrafts and loans from financial institutions (16,046) (18,668) (3,235) (12,072) Increase in loans from subsidiary companies - - 5,954 50,534 Cash received from repayment of loans to subsidiary companies - 51,144 - - Decrease in long-term liabilities (381,378) (831,354) (263,067) (790,024) Net cash provided (used) by financing activities (397,424) (798,878) (260,348) (751,562) Exchange differences on the translation of the financial statements of subsidiary companies 17,754 (85,442) - - Net increase (decrease) in cash and cash equivalents (112,625) 600,945 (68,642) 515,907 Cash and cash equivalents as at January 1, 730,994 398,693 440,760 285,589 Cash and cash equivalents as at June 30, 618,369 999,638 372,118 801,496 See notes to the interim financial statements The interim financial statements have been subjected to a review ***