(ADD2)FINANCIAL STATEMENT FOR THE QUARTERS ENDED MARCH 31,2001

DUSIT THANI PUBLIC COMPANY LIMITED AND SUBSIDIARIES NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR THE QUARTERS ENDED MARCH 31, 2001 AND 2000 (Unaudited) 1. ASIA-PACIFIC ECONOMIC TURMOIL Thailand and many Asia-Pacific countries continue to experience economic difficulties since 1997. The accompanying consolidated and the Company's financial statements reflect management's current assessment of the possible impact of the economic conditions on the financial position of the Company and its subsidiaries. 2. BASIS FOR PREPARATION OF THE INTERIM FINANCIAL STATEMENTS 2.1 The consolidated and the Company's financial statements for the quarters ended March 31, 2001 and 2000 are prepared by the management of the Company and are unaudited. However, in the opinion of the Company, all adjustments necessary for a fair presentation, have been reflected therein. The consolidated and the Company's financial statements have been prepared in accordance with the Regulation of The Stock Exchange of Thailand (SET) dated January 22, 2001 regarding the preparation and submission of financial statements and reports for the financial position and result of operations of the listed companies B.E. 2544 and in accordance with generally accepted accounting principles in Thailand (GAAP). The consolidated and the Company's balance sheet as at December 31, 2000, presented herein, have been derived from the financial statements, of the Company and subsidiaries for the year then ended which have been audited. In the statement of cash flows for the quarter ended March 31, 2000 the exchange differences on the translation of the financial statements of subsidiaries has been reclassified to be presented as an adjustment to each of the related item and the remainder as effect of exchange rate changes on cash. Certain financial information which is normally included in financial statements prepared in accordance with generally accepted accounting principles, but which is not required for interim reporting purposes, has been omitted. In addition, the aforementioned consolidated and the Company's financial statements should be read in conjunction with the consolidated and the Company's financial statements and notes thereto included in the audited financial statements for the year ended December 31, 2000. …/2 - 2 - 2.2 The interim consolidated financial statements include the account balances of the subsidiaries as follows: % of shareholding March 31, December 31, 2001 2000 2000 Dusit Hotels and Resorts Company Limited 97.44 97.33 97.44 Royal Princess Public Company Limited 79.65 79.65 79.65 Korat Thani Corporation Limited by Royal Princess Public Company Limited 68 68 68 Supsinthanee Company Limited by Royal Princess Public Company Limited - preferred shares - 100.00* 46.24* - ordinary shares 99.99 99.99 99.99 Dusit Thani International Company Limited - preferred shares 100.00* - 53.76* Philippine Hoteliers, Inc. 85.76 85.76 85.76 Dusit Thani International Company Limited 99.99 99.99 99.99 Devarana Spa Company Limited 99.99- 99.99** * Preferred shares have the same rights as the ordinary shares to receive dividends and vote in shareholders' meeting. ** The financial statements of Devarana Spa Company Limited have been audited by another auditor whose report thereon expressed an unqualified opinion. As at March 31, 2001 and December 31, 2000, Dusit Hotels and Resorts Company Limited held the share of the Company of 106,300 ordinary shares with acquisition cost of Baht 2.64 million and as at March 31, 2000, held 9,500 ordinary shares at cost of Baht 0.22 million. Such acquisition cost was presented as investments available for sale in the consolidated balance sheets and was not deducted from shareholders' equity as the amount was immaterial. All material inter-company transactions and balances have been eliminated. The financial statements for the quarter ended March 31, 2001 of Korat Thani Corporation Limited were reviewed by another auditor of the same firm, whose report thereon stated that she can not provide any assurance on the financial statements due to the material uncertainty on the company's ability to continue as a going concern as a result of significant liabilities and legal proceeding has been undertaken against it by one of its lenders since December 1999. Currently, the case is under consideration of the Court. As at March 31, 2001, the Company had an indirect equity interest of 54.16% in Korat Thani Corporation Limited and this company had total assets of Baht 197.77 million and total revenues for the quarter ended March 31, 2001 of Baht 18.06 million or 4.62% and 2.54% of the related consolidated totals. …/3 - 3 - The financial statements for the quarter ended March 31, 2001 of Supsinthanee Company Limited were reviewed by another auditor of the same firm whose report thereon stated that nothing has come to her attention that causes her to believe that the financial statements are not presented fairly, in all material respects, in accordance with generally accepted accounting principles with an explanatory paragraph regarding the uncertainty on the ability of the company to continue as a going concern. Management has implemented plans to resolve this issue. During the year 1999, this subsidiary had increased its share capital by issuing preferred shares and in year 2000 and entered into debt restructuring agreement with the creditor. In addition, the subsidiary will revise its marketing plans in order to increase operating cash flows. On September 21, 2000, this subsidiary registered the reduction in capital from Baht 213.00 million to Baht 53.25 million with the number of shares remains the same but the par value being reduced from Baht 100 per share to Baht 25 per share. Subsequently, on February 6, 2001, it registered the reduction in capital from Baht 53.25 million to Baht 21.30 million with the number of shares remains the same but the par value being reduced from Baht 25 per share to Baht 10 per share. The aforementioned decrease in capital does not affect to financial position and operation of Royal Princess Public Company Limited since the company has recognized net loss of this subsidiary until its investment in ordinary shares has been reduced to zero. In addition, on December 13, 2000, the Board of Directors' meeting of Royal Princess Public Company Limited passed a resolution to sell investment in Supsinthanee Company Limited consisting of 930,000 preferred shares and 1,199,997 ordinary shares to Dusit Thani International Company Limited which is a subsidiary of the Company in amount of Baht 0.01 per share. The 500,000 preferred shares were sold on December 20, 2000, 430,000 preferred shares on February 15, 2001, and the total ordinary shares were sold on May 2, 2001. Since the investment in Supsinthanee Company Limited has a book value of zero, the sale of such investment resulted in a gain of Baht 4,300 for the quarter ended March 31, 2001 and Baht 5,000 for the year ended December 31, 2000. As at March 31, 2001, the Company had an indirect equity interest of 88.53% in Supsinthanee Company Limited and this company had total assets of Baht 256.76 million and total revenues for the quarter ended March 31, 2001 of Baht 7.07 million or 6.00% and 1.00% of the related consolidated totals. …/4 - 4 - Should the two subsidiaries are unable to continue as a going concern, they may be required to realize their assets and extinguish their liabilities other than in the normal course of business and at amounts different from those stated in the financial statements. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or to the amounts and classification of liabilities that might be necessary should these two subsidiaries not continue as a going concern. 2.3 Balance sheet and statement of income of foreign subsidiaries are translated into Baht at the exchange rates prevailing at the balance sheet date and the average exchange rates, respectively. The exchange differences on the translation is shown as a deduction of the shareholders' equity. 3. SUPPLEMENTARY DISCLOSURES OF CASH FLOW INFORMATION 3.1 Cash and cash equivalents Baht :'000 CONSOLIDATED THE COMPANY ONLY "UNAUDITED" "UNAUDITED" FOR THE QUARTER ENDED FOR THE QUARTER ENDED MARCH 31, MARCH 31, 2001 2000 2001 2000 Cash in hand and at banks 295,494 193,748 89,316 71,763 Short-term investments 920,173 589,403 763,617 548,225 Less - Deposits with maturity of more than 3 months and cash at banks used as collateral -1,973 -3,603 -717 -2,725 - Short-term investments with maturity of more than 3 months -646,600 -325,800 -541,000 -316,400 567,094 453,748 311,216 300,863 3.2 Cash paid for interest and income tax were as follows: Baht :'000 CONSOLIDATED THE COMPANY ONLY "UNAUDITED" "UNAUDITED" FOR THE QUARTER ENDED FOR THE QUARTER ENDED MARCH 31, MARCH 31, 2001 2000 2001 2000 Interest 3,080 1,537 5 8 Income tax 559 3,107 559 2,596 …/5 - 5 - 3.3 Non cash transactions in the interim financial statements were as follows : 3.3.1 For the quarters ended March 31, 2001 and 2000, the recording of exchange differences on the translation of the subsidiary's financial statements into Baht which was presented as an addition (deduction) in the shareholders' equity of Baht (30.63) million and Baht (25.63) million, respectively. 3.3.2 In the consolidated and the Company's financial statements for the quarters ended March 31, 2001 and 2000, the recording of investments available for sale at fair value and recognizing unrealized gain (loss) on such investments of Baht 0.84 million and Baht (3.33) million, respectively, which were included in shareholders' equity. 3.3.3 In the Company's financial statements for the quarter ended March 31, 2000, the recognition of undistributed net loss of subsidiary in excess of the Company's investments and minority interest in the amounts of Baht 103.88 million, as the Company will continue to provide financial support to the subsidiary. 3.3.4 In the consolidated financial statements for the quarter ended March 31, 2000, the transferring of accrued interest payable of Baht 76.13 million, other payable of Baht 6.11 million and loan from financial institution of Baht 240.71 million, totalling Baht 322.95 million of Supsinthanee Company Limited to current portion of long-term liabilities of Baht 160.24 million and long-term liabilities of Baht 162.71 million in accordance with the conditions specified in debt restructuring agreement dated March 28, 2000. 3.3.5 For the quarter ended March 31, 2000, the Company has transferred the hotel management service business to one subsidiary on January 1, 2000. According to the contract, the Company has transferred related assets totalling Baht 3.86 million and liabilities of Baht 1.67 million and the difference between assets and liabilities is recorded as cash received from sale of assets relating to the hotel management service business in the amount of Baht 2.19 million in the Company's financial statements. 4. SHORT-TERM INVESTMENTS As at March 31, 2001 and December 31, 2000, short-term investments in the consolidated financial statements included fixed deposits of Baht 1.97 million and Baht 1.96 million, respectively, which are used as collateral for bank guarantees and employees' loans from bank. As at March 31, 2001 and December 31, 2000, short-term investments in the Company's financial statements included fixed deposit of Baht 0.72 million and Baht 0.71 million, respectively, which are used as collateral for bank guarantees and employees' loans from bank. …/6 - 6 - 5. TRADE ACCOUNTS RECEIVABLE Trade accounts receivable are classified by aging as follows: CONSOLIDATED THE COMPANY ONLY "Unaudited" "Unaudited" March 31, December 31, March 31, December 31, 2001 2000 2001 2000 Number of accounts receivable - past due 1,360 1,010 555 528 Baht : 000 Aging amount Less than 3 months 140,447 147,995 80,530 92,850 3-4 months 1,626 2,634 237 1,762 Over 4 months 12,881 16,412 4,415 7,431 Total 154,954 167,041 85,182 102,043 Allowance for doubtful accounts -13,205 -15,416 -8,930 -11,403 6. INVESTMENTS AND LOANS Investments and loans consisted of the following : 6.1 Related parties Baht :'000 CONSOLIDATED THE COMPANY ONLY "Unaudited" "Unaudited" March 31, December 31, March 31, December 31, 2001 2000 2001 2000 Related parties Investments in subsidiary and associated companies (Note 9) 217,742 217,742 1,068,512 967,455 Add (Less) Net valuation adjustment for change in fair value - - -3,620 -8,302 Total 217,742 217,742 1,064,892 959,153 …/7 - 7 -