Report of performance for June 30, 2007 compared with 2006

Translation August 14, 2007 Subject: Report of performance for the period ended June 30, 2007 compared with June 30, 2006 Attention: Managing Director The Stock Exchange of Thailand Dusit Thani Public Company Limited hereby reports the performance according to the consolidated statements of income for the three-month and six- month periods ended June 30, 2007 compared with the three-month and six- month periods ended June 30, 2006 as follows: The Company has adopted Thai Accounting Standard (TAS) 44 (amendment 2007) "Consolidated financial statements and separate financial statements" and TAS 45 (amendment 2007) "Investments in associates". This amendment requires change of investments in subsidiaries and associates from equity method of accounting to cost method of accounting 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 effect to the Company's financial statement only and does not have an effect to the consolidated financial statements. As a result of change in such accounting policy, as of January 1, 2007, the Company had an accumulated loss of Baht 94.2 million. However, the annual shareholders' meeting on April 27, 2007 approved the transfer of the appropriated retained earnings - other reserves of Baht 310 million to unappropriated retained earnings which effects from January 1, 2007. The transaction 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 June 30, 2007, the operations of the Company and subsidiaries had net loss of Baht 44.0 million, increased from the same three-month period of last year by Baht 20.7 million. For six-month period ended June 30, 2007, the operations of the Company and subsidiaries had income before interest and income tax amounted to Baht 175.6 million, decreased from the same period of last year by Baht 44.8 million, or 20%. After deducting interest expense of Baht 46.1 million and income tax of Baht 32.9 million, the income after income tax was Baht 96.6 million. As a result, net profit after minority interest of Baht 6.3 million was Baht 90.3 million, increased from the same period of last year by Baht 15.8 million or 15%, and earnings per share was Baht 1.07, 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 period of last year by Baht 26.6 million, or 2%. 2. Management service income The Company and subsidiaries had management service income decreased from the same period of last year by Baht 12.7 million, or 17% which resulted from the hotel 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 slightly increased from the same period of last year. 4. Others The Company and subsidiaries had other income increased from the same period of last year by Baht 23.9 million, or 57%. The main increments are technical services, membership cards and others of the Company and subsidiaries. In addition, there is income arising from non operation resulted from the written off invalid liabilities: expenses during the development process of subsidiary of Baht 5.3 million and negative investment in subsidiary of Baht 7.4 million. 5. Cost of sales and services The Company and subsidiaries had cost of sales and services amounted to Baht 763.1 million, or 52% of revenue from sales and services, which its portion similar to the same period of last year, which had cost of sales and services amounted to Baht 713.4 million, or 50% of revenue from sales and services. 6. Selling and administrative expenses The Company and subsidiaries had selling and administrative expenses amounted to Baht 415.8 million, or 26% of total revenues, compared to last year, selling and administrative expenses was Baht 382.0 million, or 25% of total revenues. Therefore, the selling and administrative expenses increased from the same period of last year by Baht 33.8 million. The major increase resulted from the increase of promotion and marketing expenses of Baht 4.5 million, and employee expenses increased by Baht 28.4 million to support the expansion of business. In addition, there were the expenses of Le Cordon Bleu Dusit Co., Ltd. incorporated on August 11, 2006 in the amount of Baht 2.8 million. 7. 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 six-month period ended June 30, 2007 was amounted to Baht 242.5 million, similar to the same period of last year which was Baht 239.1 million, increased by Baht 3.4 million, or 1%. 8. Interest expenses The Company and subsidiaries had interest expenses amounted to Baht 46.1 million, increased from the same period of last year by Baht 11.9 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 June 30, 2007, total assets was Baht 6,060.1 million, decreased from the balance as of December 31, 2006 by Baht 247.3 million, whereas total liabilities as of June 30, 2007 was Baht 2,022.6 million, decreased from the balance as of December 31, 2006 by Baht 202.4 million. The calculation of debt to equity ratio was 0.53:1. In addition, the unappropriated retained earnings was Baht 1,232.2 million, and book value was Baht 44.98 per share. Clarification The effect of change in investment accounting policy 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 which effects from January 1, 2007. 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 six-month period ended June 30, 2007 presented in the consolidated statement of income was Baht 90.3 million. On the other hand, the net profit for the six-month period ended June 30, 2007 presented in the Company's statement of income was Baht 215.2 million. Moreover, the effect of this change in investment accounting policy will be as follows: 1. The net profit for the six-month period ended June 30, 2007 and 2006, presented in the Company's statement of income stated increase by Baht 125.0 million and Baht 93.0 million, respectively (an increase of Baht 1.47 per share and Baht 1.13 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 but recognized dividend from subsidiaries as income. 2. Investment in subsidiaries, other related transactions and retained earnings in balance sheet as at January 1, 2007, presented in the Company's financial statement, net decreased by Baht 1,016.9 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.