CENTEL ANNOUNCES Q3/09 OPERATING PERFORMANCE :WHILE HOTEL REVENUES INCREASED 8.9% YoY, NET RESULTS IS IMPACTED BY ONE-TIME EXTRAORDINARY PROVISIONS RELATING TO THE GUARANTEE FOR THE CTARAF PROPERTY FUND

Despite apparent evidences of a recovery in the global economy since Q2/09 and spilling over into Q3/09, as yet a full recovery and return to the pre-U.S. financial crisis norm is still not absolutely clear - resulting in the fact that international tourist arrival into Thailand has still not yet increased steeply to return to its traditionally high levels. Rather, there has been more of a gradual increase in overseas travelers since June this year, whereby only in September (the last month for the Q3 period) was the total international tourist arrivals been higher than September last year.

Thus, overall, the hotel business sector here is still being impacted by the global economic crisis as well as by the ongoing unsettled political situation in Thailand itself (which although has shown signs of improving but no end in sight); and the business is also being affected by the new round of H1N1 2009 flu cases seen recently in the USA, the UK, Mexico and China which have seen increased numbers of sick and dead people - resulting in the Thai Hotels Industry's Average Occupancy Rate (AoC) achieved being only at 49% and 16.5% decrease for the average RevPAR when compared to the same period last year; due mainly to most hotel operators deploying sharp pricing strategies and reduction campaigns.

However, CENTEL continues to be able to achieve higher AoC than the overall industry average - at 60.7% (not including its recently opened new Centara Grand Mirage Beach Resort, Pattaya; but, if included, the AoC achieved is at 56.8% - which is still better than the industry average); while CENTEL's RevPAR has increased by 1% when compared to last year.

For the Q3/2009 period, CENTEL achieved the following operating results :

• Total revenues of Baht 1,967.8 million - more or less the same as last year Baht 1,971.2 million (or at only Baht 0.5 million less). This is due CRG's discontinuation of the Pizza Hut operations (since Q1/09) as well as of another brand (during Q2/09), resulting in a 6.8% decrease in overall Food Business revenues. While overall Hotels Business revenues increased by 8.9% YoY, mostly due to the soft opening (in August 2009) of the new Centara Grand Mirage Beach Resort, Pattaya as well as continuing increased revenues for Centara Grand at the CentralWorld.
  
  
• Overall EBITDA of Baht 269.3 million - a decrease of 21.7% YoY, due to the fact that the new Centara Grand Mirage Beach Resort, Pattaya is still in its initial soft opening phase incurring substantial operating expenses occurring, which is normal in the hotel business.
  
  
• Food service Business' EBITDA Margin has, in fact, increased YoY - as a result of the discontinuation of the Pizza Hut and other brands, and also due to successful cost control measures taken.
  
  
• Net Q3/09 Results : a loss of Baht 166.2 million (or a increased loss of Baht 118.5 million compared to last year) - due to the an extraordinary expense item being booked in this period - namely a estimated provision of Baht 117 million (net, after the 25% vested share of the profits) was made relating to the guarantee for the CTARAF Property Fund.

As at the end of Q3/2009, CENTEL has a total of 482 food services outlets in operation together with a total of 22 hotels(with 4,992 rooms - consisting 10 owned hotels, four joint venture hotels, and eight managed hotels.

Lastly, an improved Hotel business operating environment is anticipated for the Q4/2009 period which is traditionally a ‘high tourist season' period; and similarly an improved market environment is also expected for the Food service business due to the traditional year-end festivities.