Report of performance for the year 2006 compared with 2005

Translation March 1, 2007 Subject: Report of performance for the year ended December 31, 2006 compared with December 31, 2005 Attention: Managing Director The Stock Exchange of Thailand For year 2006, the operations of the Company and subsidiaries had income before interest and income tax amounted to Baht 475.42 million, increased from year 2005 by Baht 101.65 million, or 27.20%. After deducting interest expense of Baht 81.62 million and income tax of Baht 130.99 million, the income after income tax was Baht 262.81 million. As a result, net income after minority interest of Baht 41.60 million was Baht 221.22 million, decreased from year 2005 by Baht 23.89 million or 9.75%. The net income presented in the statement of income for the year ended December 31, 2006 consisted of the following: 1. Revenue from sales and services The owned hotels under Dusit Group and Royal Princess Group had revenues from sales and services increased from last year by Baht 273.37 million, or 10.61%. After high renovation hotels to modern style and satisfy their guests, for example Executive Club Lounge for business persons, internet and conference room for business groups caused their hotel revenues increased. In addition, D2hotel Chiang Mai, new trendy hotel under Dusit Hotels and Resorts Co., Ltd. had soft opening in November 2005 and grand opening in November 2006 and its revenues increased from last year by Baht 78.30 million. The revenues of the Company's hotels increased by Baht 187.15 million, consisted of the following: - Dusit Thani Hotel: the revenues increased by Baht 107.70 million, or 15.89%. - Dusit Resort Pattaya: the revenues increased by Baht 47.40 million, or 11.20%. - Dusit Resort Hua Hin: the revenues increased by Baht 34.67 million, or 10.27%. - Dusit Office Building: the revenues decreased by Baht 2.62 million, or 9.03%, resulted from year 2005, the Company has renovated and re-organized the lease areas by re-allocating and expanding each rental unit. Accordingly, such revenue decreased. The revenues of subsidiaries hotels mostly increased accept for Dusit Hotel Nikko Manila and Spa business, can describe as follows: - Dusit Hotel Nikko Manila: since July 2006, the hotel has partially closed for renovation so its revenues decreased by Baht 19.10 million, or 3.41%. - Hotels under the Royal Princess Group, comprise of Royal Princess Larnluang, Royal Princess Srinakarin, Royal Princess Chiangmai and Royal Princess Korat earned revenue for year 2006 increased by Baht 28.06 million, or 5.65%. - D2hotel Chiangmai, under Dusit Hotels and Resorts Co., Ld., a new brand hotel of Dusit group, 5 stars hotel with size and number of guest room are less than other hotels in Dusit group, but modernizes and very convenience. It had soft opening in November 2005 and grand opening in November 2006. As such, the revenues for year 2006 increased by Baht 78.30 million. . Devarana Spa operates spa services, namely Devarana Spa, the leading Spa which is very popular among Spa lovers from local and overseas. Currently, there are 4 branches located in Bangkok, Pattaya, Hua Hin/Cha-am and the latest branch: in Chiangmai. For year 2006, the Spa's revenues decreased by Baht 1.63 million, or 3.21%, resulted from Devarana Spa Bangkok, in year 2006 had partially closed for renovation and it has high competitive in spa business for guests to choose, so its revenues decreased. In addition, Dusit Executive Development Center Co., Ltd., a subsidiary, operates training business, essential for service business to the Company and subsidiaries' employees and others. Its revenues increased from year 2005 by Baht 0.58 million, or 44.08%. 2. Management service income The Company and subsidiaries had management service income increased from year 2005 by Baht 9.54 million, or 7.88% which resulted from the better revenues of hotels under Dusit and Royal Princess Groups of the Company and subsidiaries. 3. Compensating income from terminating agreement For the year ended December 31, 2006, Royal Princess Public Company Limited, a subsidiary, and the engaging party agreed to terminate the hotel management agreement prior to the expiry date, and entered into a franchise agreement under the brand "Royal Princess". Such franchise agreement is in effect from September 1, 2006 to March 31, 2013. In which Royal Princess Public Company Limited would receive franchise fee as specified in the agreement. As a result of early management agreement terminated, the engaging party compensated of Baht 113.28 million to Royal Princess Public Company Limited. Therefore, the statement of income for this year presented such amount of income which is not occurred from the normal operations. 4. Interest income The Company and subsidiaries had interest income for year 2006 totalling Baht 16.29 million, increased from last year by Baht 13.54 million, resulted from the better performance and the decreased in use of fund for renovating the hotels, so more fund for investing in financial institutions for interest earn increased. 5. Cost of sales and services For the year ended December 31, 2006, the Company and subsidiaries had cost of sales and services amounted to Baht 1,468.81 million, or 51.56% of revenue from sales and services, which its portion similar to last year, which had cost of sales and services amounted to Baht 1,351.65 million, or 52.48% of revenue from sales and services. 6. Selling and administrative expenses For the year ended December 31, 2006, the Company and subsidiaries had selling and administrative expenses amounted to Baht 798.67 million, or 24.78% of total revenues, compared to last year, selling and administrative expenses was Baht 731.66 million, or 25.89%. Therefore, the selling and administrative expenses increased by Baht 67.01 million. The major increase resulted from the Dusit Resort Pattaya had renewed the land lease agreement in January 2006 with higher rental rate, so that its rental expense for year 2006 increased by Baht 17.17 million. In addition, expenses of Dubai Office in United Arab Emirates for business expansion in Middle East rose by Baht 6.55 million, overseas promotion, marketing and other expenses to support the expansion of business increased by 43.29 million. 7. Depreciation and amortization expenses Early year 2006, most renovation for hotels under Dusit Group were completed, for hotels under Royal Princess Group were partially completed, and for D2hotel had soft opening in late 2005. Therefore, the Company and subsidiaries started to book depreciation for new renovation and D2hotel. The depreciation for the year ended December 31, 2006 amounted to Baht 475.45 million, increased from year 2005 by Baht 113.64 million, or 31.41%. 8. Interest expenses For the year ended December 31, 2006, the Company and subsidiaries had interest expenses amounted to Baht 81.62 million, increased from last year by Baht 61.88 million. Such interest was paid to financial institutions for borrowing of the Company and subsidiaries for their hotel renovation. Balance Sheet Total assets of the Company and subsidiaries as of December 31, 2006 was Baht 6,338.54 million, increased from the balance as of December 31, 2005 by Baht 706.58 million, whereas for liabilities, there was an increased in borrowing, so total liabilities was Baht 2,233.78 million, increased from the balance as of December 31, 2005 by Baht 454.35 million. The calculation of debt to equity ratio was 0.58:1. In addition, the unappropriated retained earnings was Baht 922.66 million, and book value was Baht 46.68 per share.