Report of performance for year 2004 compared with 2003

Translation Date: March 1, 2005 Subject: Report of performance for the period ending December 31, 2004 compared with December 31, 2003 Attention: Managing Director The Stock Exchange of Thailand Dusit Thani Public Company Limited would like to report the financial performance according to the consolidated statement of income for the year 2004 compared with the year 2003 as follows: 1. Consolidated Financial Statement In 2004 the Company's income before interest and income tax expenses were Baht 443 million, an increase from the last year by Baht 29 million or 7%. However, income after interest and income tax expenses was Baht 310 million, a decrease from last year by Baht 25 million or 7%, as a result of a higher income tax expense increased by Baht 68 million. After deducting the Net Profit of Minority Interest of Baht 108 million, where the Net Profit Minorty Interest included Gain from Debt Restructuring of Korat Thani Co.,Ltd. in the Extraordinary Item of Baht 73 million, income before the Extraordinary Item was Baht 201 million. However, added with the Extraordinary item from the Gain from Debt Restructuring of Korat Thani Co.,Ltd. in 2004 of Baht 364 million, net income therefore totals Baht 565 million or Baht 6.93 per share. 2. Revenue In 2004, the Company and its subsidiaries had an income of Baht 2,577 million, an increase for the same period in the last year 2003 by Baht 324 million or 14% (Baht 2,253 million in year 2003), as a result of better performances by the hotel business under the Company and its subsidiaries: Dusit Thani Hotel: After the renovations of rooms and restaurants such as rooms in the East Wing, the Italian restaurant il cielo, the French restaurant D'Sens and bar MyBar which were completed and a 70% completion of the renovations of rooms in the Main Tower, the conversion of rented retail space into 6 small conference rooms to provide small conference services to the business segment which has received a good market response, even though renovations has not been completed entirely, the hotel's revenue had amounted to Baht 617 million, an increase by Baht 117 million (Baht 500 million in 2003) or 23%. Dusit Resort Pattaya: Continuous renovations since 2001 to maintain the standards of a 5-star hotel, marketing and maintenance of service standards has resulted in the hotel's revenue amounting to Baht 382 million (Baht 342 in 2003), an increase by Baht 40 million or 11%. Dusit Resort and Polo Club: As member of Leading Hotels of the World and has also been continuously renovated to maintain the standards accepted by Leading Hotels of the World and in compliance with the marketing policy of the association, and despite competition among several foreign chain hotels in the area, the Hotel was able to earn revenue for the year 2004 in the amount of Baht 275 million (Baht 263 million in year 2003), an in crease by Baht 12 million or 4%. Dusit Hotel Nikko Manila: After the change in strategy and marketing, the hotel earned a revenue of Baht 522 million (Baht 434 million in year 2003), an increase by Baht 88 million or 20%. Hotels under the Royal Princess Group, which is a subsidiary is comprised of Royal Princess Larnluang, Royal Princess Srinakarin and Royal Princess Chiangmai earned a revenue in 2004 in the amount of Baht 501 million (Baht 435 million in year 2003), an increase by Baht 66 million or 15%. Hotel Management Fees: The Company earned revenue from Hotel Management fee of Baht 118 million in 2004 (Baht 80 million in year 2003), an increase from last year by Baht 38 million or 47% as a result of better financial performance of the hotels under the management of both Dusit and Royal Princess Groups, particularly Dusit Dubai in the Emirates which earned more revenue than last year by Baht 38 million or 46% and an increase in operating profits by 205%, despite the expiration of the management contract of Dusit Resort Santiburi at the end of August 2004. Deverana Spa: Revenue from the spa business was Baht 57 million (Baht 44 million in year 2003), an increase of Baht 13 million or 29%. Office Building: Revenue from the office building businesses was Baht 29 million (Baht 29 million in year 2003) Other revenues: The Company had other income of Baht 76 million (Baht 126 million in year 2003), a decrease of Baht 50 million partly from the termination of 2 restaurants outside the hotels. 3. Cost of Sales and Services In 2004, the Company and its subsidiaries' Cost of Sales and Services was Baht 1,254 million or 53% of the Revenue from Sales and Services, which was quite close to the year 2003 which was Baht 1,105 million or 54% of Revenue. 4. Selling and Administrative Expenses In 2004, the Company and its subsidiaries had a Selling and Administrative Expenses of Baht 588 million or 22% of total revenue. In 2003, Selling and Administrative Expenses amounted to Baht 483 million of which included profits from the sale of land of Baht 13 million. When this item was converted back, Selling and Administrative Expenses for 2003 amounted to Baht 496 million or 22% of total revenue. Therefore, Selling and Administrative Expenses for year 2004 increased from year 2003 by Baht 92 million as follows: 1. Dusit Thani Hotel Land Rental Dusit Thani Hotel had extended its rental contract with Crown Property Bureau for a period of 15 years beginning April 1, 2003 by posting an advance rental of Baht 1,000 million and acknowledging the new rental rate for only 9 months. In 2004, the new rental rate was acknowledged for the whole year therefore the rental expense increased Baht 16 million. 2. Property Tax Expense Due to the District Office change of methods used for the calculation of property tax which varied from year 2004 by basing its calculations on the advanced rental payment to the Crown Property Bureau and taking average annual rental as a tax base, property tax expense increased Baht 8 million. 3. Value of Good Will borne from the purchase of Korat Thani Co., Ltd.'s shares from the minority shareholders in the amount of Baht 7 million. 4. Sales Promotion and Marketing Expenses increased Baht 25 million. 5. Miscellaneous Expenses such as payroll and other expenses of the Company and its subsidiaries increased Baht 36 million due to the annual adjustment of employee salary. Furthermore, more positions were filled to increase operating efficiency. 5. Depreciation and Amortization Expenses Because of completed renovations of Dusit Thani Hotel and other hotels in partial, the Company had started to record depreciation expenses of Baht 288 million (Baht 246 million in year 2003), an increase of Baht 42 million or 17%. 6. Income before interest and tax expenses Income before interest and income tax expenses of Baht 443 million can be broken down as follows: - Dusit Thani Hotel Bangkok had a loss of Baht 9 million (profit of Baht 39 million in year 2003) - Dusit Resort Pattaya had an income before interest and tax expenses of Baht 139 million (profit of Baht 127 million in year 2003) - Dusit Resort and Polo Club had an income before interest and tax expenses of Baht 77 million (profit of Baht 77 million in year 2003) - Dusit Hotel Nikko had an income before interest and tax expenses of Baht 74 million (profit of Baht 25 million in year 2003) - Hotel under the Royal Princess Group had total income before interest and tax expenses of Baht 151 million (profit of Baht 112 million in year 2003) - Devarana Spa had an income before interest and tax expenses in year 2004 of Baht 27 million (profit of Baht 18 million for year 2003). - Outside Restaurant had a loss of Baht 7 million (profit of Baht 5 million in year 2003) - Others had a loss of Baht 9 million (profit of Baht 11 million in year 2003) 7. Interest Expense In 2004, the Company had an Interest Expense of Baht 50 million, the majority was from Korat Thani Co., Ltd. 8. Income Tax In 2004, the Company and its subsidiaries had an Income Tax of Baht 82 million, broken down as follows: - Dusit Thani Public Company Limited Baht 24 million - Dusit Thani International Co., Ltd. Baht 24 million - Dusit Hotels and Resorts Co., Ltd. Baht 18 million - Philippine Hoteliers, Inc. Baht 13 million - Devarana Spa Co., Ltd. Baht 3 million In 2003, the Company and its subsidiaries had an Income Tax of Baht 14 million, broken down as follows: - Royal Princess Public Company Limited Baht 2 million - Dusit Thani International Co., Ltd. Baht 6 million - Dusit Hotels and Resorts Co., Ltd. Baht 17 million - Philippine Hoteliers, Inc. Baht (12) million - Devarana Spa Co., Ltd. Baht 1 million Income Tax increased Baht 68 million. Because the Company and its subsidiaries expended their tax loss entirely in 2003, the income tax in 2004 was due in full with the exception of Royal Princess Public Company Limited who had not yet paid the income tax in 2004 because of the loss from debt restructuring for Korat Thani Co., Ltd. of Baht 250 million.