Report of performance for March 31, 2007 compared with 2006

Translation May 15, 2007 Subject: Report of performance for the period ended March 31, 2007 compared with March 31, 2006 Attention: Managing Director The Stock Exchange of Thailand For three-month period ended March 31, 2007, the Company has adopted Thai Accounting Standard (TAS) 44 (amendment 2006) "Consolidated financial statements and separate financial statements" and TAS 45 (amendment 2006) "Investments in associates". This amendment requires investments in subsidiaries and associates to be accounted for at cost (previously equity method) in the Company's financial statements. Under the cost method, income from investment will be recorded when dividends are declared. The notification is mandatory from January 1, 2007. The change in such accounting policy has an impact to the Company's financial statement only and does not have an impact to the consolidated financial statements. As a result of change in the accounting policy, the Company will have an accumulated loss of Baht 94.24 million. However, the Shareholders' Meeting on April 27, 2007 approved the transfer of the appropriated retained earnings - other reserves of Baht 310.00 million to offset the Company's accumulated losses which effects from January 1, 2007. The offset is allowed under the Public Limited Companies Act section 119, and therefore, the Company no longer had accumulated losses and can pay the dividend usually. Operating results For three-month period ended March 31, 2007, the operations of the Company and subsidiaries had income before interest and income tax amounted to Baht 208.95 million, increased from the same three-month period of last year by Baht 0.13 million, or 0.06%. After deducting interest expense of Baht 24.90 million and income tax of Baht 43.94 million, the income after income tax was Baht 140.12 million. As a result, net profit after minority interest of Baht 5.85 million was Baht 134.27 million, increased from the same three-month period of last year by Baht 4.82 million or 3.72%, and earnings per share was Baht 1.59, which resulted from 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 the same three-month of last year by Baht 37.82 million, or 4.62%. 2. Management service income The Company and subsidiaries had management service income decreased from the same three-month period of last year by Baht 2.92 million, or 6.70% which resulted from the revenues of hotels under Royal Princess Groups: Pathumwan Princess terminated 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. As a result, such revenue was decreased. However, the management service income under Dusit and Royal Princess Groups managed by the Company and subsidiaries had better revenues. 3. Interest income The Company and subsidiaries had interest income increased from the same three-month period of last year by Baht 3.20 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. 4. Cost of sales and services The Company and subsidiaries had had cost of sales and services amounted to Baht 391.91 million, or 45.79% of revenue from sales and services, which its portion similar to the same three-month period of last year, which had cost of sales and services amounted to Baht 370.77 million, or 45.33% of revenue from sales and services. 5. Selling and administrative expenses The Company and subsidiaries had selling and administrative expenses amounted to Baht 204.68 million, or 22.11% of total revenues, compared to last year, selling and administrative expenses was Baht 189.89 million, or 21.42% of total revenues. Therefore, the selling and administrative expenses increased from the same three-month period of last year by Baht 14.79 million. The major increase resulted from the increase of promotion and marketing expenses of Baht 4.95 million, and employee expenses increased by Baht 6.74 million to support the expansion of business. In addition, the expenses of Le Cordon Bleu Dusit Co., Ltd. incorporated on August 11, 2006 increased by Baht 1.43 million. 6. Depreciation and amortization After the renovation of hotels under Dusit and Royal Princess Groups were partially completed, and D2hotel were mostly completed. Therefore, depreciation of the Company and subsidiaries for the three-month period ended March 31, 2007 was amounted to Baht 119.11 million, similar to the same three-month period of last year which was Baht 116.08 million, increased by Baht 3.03 million, or 2.61%. 7. Interest expenses The Company and subsidiaries had interest expenses amounted to Baht 24.90 million, increased from the same three-month period of last year by Baht 11.82 million. Such interest was paid to financial institutions for borrowing of the Company and subsidiaries for their hotel renovation. Financial position The consolidated balance sheet of the Company and subsidiaries as of March 31, 2007, total assets was Baht 6,338.02 million, increased from the balance as of December 31, 2006 by Baht 30.70 million, whereas for liabilities, there was a decrease in borrowing, so total liabilities was Baht 2,133.88 million, decreased from the balance as of December 31, 2006 by Baht 91.15 million. The calculation of debt to equity ratio was 0.54:1. In addition, the unappropriated retained earnings was Baht 1,361.20 million, and book value was Baht 46.34 per share. Clarification The effect of change in investment accounting policy For the three-month period ended March 31, 2007, the Company has changed the accounting method in recording investments in subsidiaries and associates in the Company financial statements from equity method to cost method as per Thai Accounting Standard No.44. As a consequence, the Company has restated the last year's comparative financial statements retrospectively, as if the cost method had always been in use. Therefore, the 2006 comparative figures are prepared on the assumption that the new accounting method has been applied. The Company has recorded the investment in subsidiaries and associates at historical cost in the Company financial statements, which income from investment will be recorded when dividends are declared by subsidiaries and associates. As such, which to net profit in the Company financial statements to be different from those in the consolidated financial statements. The net profit for the three-month period ended March 31, 2007 presented in the consolidated statement of income was Baht 134.27 million. On the other hand, the net profit for the three-month period ended March 31, 2007 presented in the Company's statement of income was Baht 98.85 million. Moreover, the effect of this change in investment accounting policy will be as follows: 1. The net profit for the three-month period ended March 31, 2007 and 2006, presented in the Company's statement of income stated decrease by Baht 35.43 million and Baht 44.41 million, respectively (a decrease of Baht 0.42 per share and Baht 0.54 per share, respectively). This was due to the Company's financial statements which did not include share of profits from investments using the equity method transactions. 2. Investment in subsidiaries, other related transactions and retained earnings in balance sheet as at March 31, 2007, presented in the Company's financial statement, net decreased by Baht 1,016.90 million. The accumulated change from the change in this accounting policy has been presented in "Cumulative effect of changes in accounting policies" in the Company's statement changes in shareholders' equity. Nonetheless, this is merely a change in accounting policy for investments in subsidiaries and associates in the Company's financial statements, not a change in any fundamental factors affecting the Company's business.