Report of performance for Sept. 30, 2007 compared with 2006

Translation November 14, 2007 Subject: Report of performance for the period ended September 30, 2007 compared with September 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 nine-month periods ended September 30, 2007 compared with the three-month and nine-month periods ended September 30, 2006 as follows: Operating results For three-month period ended September 30, 2007, the operations of the Company and subsidiaries before interest and income tax had net loss of Baht 29.32 million, compared to the same period of last year which had income before interest and income tax of Baht 4.68 million, (not included the compensating income from terminating agreement of Baht 113.28 million). For nine-month period ended September 30, 2007, the operations of the Company and subsidiaries had income before interest and income tax of Baht 146.32 million, compared to the same period of last year which had income before interest and income tax of Baht 225.12 million (not included the compensating income from terminating agreement of Baht 113.28 million), decreased by 35%. After deducting interest expense of Baht 68.03 million and income tax of Baht 33.11 million, the income after income tax was Baht 45.19 million. As a result, net profit after minority interest of Baht 5.80 million was Baht 39.39 million, decreased from the same period of last year by Baht 35.92 million (not included the compensating income from terminating agreement, after deducted income tax and net (profit) loss of minority interest), decreased by 47%, and earnings per share was Baht 0.47, 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 totalling Baht 2,145.49 million, increased from the same period of last year by Baht 87.95 million, or 4.27%. 2. Management service income The Company and subsidiaries had management service income of Baht 80.51 million, decreased from the same period of last year by Baht 17.64 million, or 18% 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. -1- 3. Interest income The Company and subsidiaries had interest income slightly decreased from the same period of last year. 4. Others The Company and subsidiaries had other income of Baht 94.26 million, increased from the same period of last year by Baht 29.05 million, or 45%. 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 5.34 million and negative investment in subsidiary of Baht 7.38 million. 5. Cost of sales and services The Company and subsidiaries had cost of sales and services amounted to Baht 1,159.90 million, or 54% 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 1,068.81 million, or 52% of revenue from sales and services. 6. Selling and administrative expenses The Company and subsidiaries had selling and administrative expenses amounted to Baht 645.72 million, increased from the same period of last year by Baht 74.94 million, or 13.13%. The increase resulted from the increase of promotion and marketing expenses,the implement and development of central reservation system, re-branding of the Company and employee expenses to support the expansion of business both in Thailand and overseas. During this year, the Company had singed additional 3 agreements to manage hotels in Thailand which are 1. dusitD2 Baracuda, Pattaya, 2. The Eight Heaven, Pang-nga and 3. dusitD2, Samui, and in overseas 5 agreements which are 1. Dusit Dubai Palm Jumeirah, 2. Dusit Residence Marina, Dubai, 3. P-9 Abu Dhabi, 4. Pearl Coast Premier Hotel Apartments, which managed by Dusit Residence and 5. The Lake View, New Cairo, Egypt. Moreover, there are another 12 projects which are in considering process. In addition, there were the expenses of Le Cordon Bleu Dusit Co., Ltd. incorporated on August 11, 2006 in the amount of Baht 5.54 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 nine-month period ended September 30, 2007 was amounted to Baht 380.89 million and the same period of last year was Baht 367.45 million, increased by Baht 13.44 million, or 4%. 8. Interest expenses The Company and subsidiaries had interest expenses amounted to Baht 68.03 million, increased from the same period of last year by Baht 11.77 million, or 21%. Such interest was paid to financial institutions for borrowing of the Company and subsidiaries for their hotel renovation. -2- Financial position The consolidated balance sheet of the Company and subsidiaries as of September 30, 2007, total assets was Baht 6,142.59 million, decreased from the balance as of December 31, 2006 by Baht 164.73 million, whereas total liabilities as of September 30, 2007 was Baht 2,149.77 million, decreased from the balance as of December 31, 2006 by Baht 75.27 million. The calculation of debt to equity ratio was 0.57:1. In addition, the unappropriated retained earnings was Baht 1,138.81 million, and book value was Baht 44.51 per share. Clarification The effect of change in investment accounting policy The Company has changed the accounting method in recording investments in subsidiary and associated companies 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 subsidiary and associated companies at historical cost in the Company financial statements, which income from investment will be recorded when dividends are declared by subsidiary and associated companies. 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 nine-month period ended September 30, 2007 presented in the consolidated statement of income was Baht 39.39 million. On the other hand, the net profit for the nine-month period ended September 30, 2007 presented in the Company's statement of income was Baht 233.53 million. Moreover, the effect of this change in investment accounting policy will be as follows: 1. The net profit for the nine-month period ended September 30, 2007 and 2006, presented in the Company's statement of income stated increase by Baht 194.14 million and Baht 21.16 million, respectively (an increase of Baht 2.28 per share and Baht 0.26 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 subsidiary and associated companies, 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 1,016.90 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 subsidiary and associated companies in the Company's financial statements, not a change in any fundamental factors affecting the Company's business. -3-