5. Assets of the company

  5.1 Summary of operating assets of the company and its subsidiaries

  As at 31^(st) December 2004, the assets of LRH and its subsidiary
  companies that are used in its business operations are as follows:

  LAND, BUILDINGS AND MACHINERY

 Baht : Million

+-----------------------+------+-------+------+------+------+-------+
| Type of assets        | T    | L     | La   | La   | La   | TW    |
|                       | otal | aguna | guna | guna | guna | R-Hol |
|                       |      | Re    | Gr   |      | B    | dings |
|                       |      | sorts | ande | Ba   | each | Li    |
|                       |      | &     | Lim  | nyan | Club | mited |
|                       |      | H     | ited | Tree | Lim  | &     |
|                       |      | otels | &    | Lim  | ited | s     |
|                       |      | P     | subs | ited | &    | ubsid |
|                       |      | ublic | idia | &    | su   | iarie |
|                       |      | Co    | ries | subs | bsid | s,and |
|                       |      | mpany |      | idia | iary | Other |
|                       |      | Li    |      | ries |      |       |
|                       |      | mited |      |      |      |       |
+-----------------------+------+-------+------+------+------+-------+
| Hotel properties      | 5,60 | 1,0   | 1,63 | 1,41 | 1,49 | -     |
|                       | 8.30 | 64.93 | 0.79 | 5.71 | 6.87 |       |
+-----------------------+------+-------+------+------+------+-------+
| Land and land         | 3,67 | 3     | 2,90 | -    | 27   | 1     |
| improvement           | 4.80 | 27.85 | 4.96 |      | 1.78 | 70.21 |
+-----------------------+------+-------+------+------+------+-------+
| Land awaiting         | 70   | -     | 11   | -    | -    | 5     |
| development           | 0.34 |       | 2.30 |      |      | 88.04 |
+-----------------------+------+-------+------+------+------+-------+
| Buildings and staff   | 14   | 61.40 | 5    | -    | -    | 31.22 |
| dormitories           | 7.57 |       | 4.95 |      |      |       |
+-----------------------+------+-------+------+------+------+-------+
| Furniture, fixtures   | 31   | 33.65 | 8    | 0.28 | -    | 2     |
| and equipment         | 9.42 |       | 1.52 |      |      | 03.97 |
+-----------------------+------+-------+------+------+------+-------+
| Golf course           | 28   | -     | 28   | -    | -    | -     |
|                       | 3.17 |       | 3.17 |      |      |       |
+-----------------------+------+-------+------+------+------+-------+
| Motor vehicles        | 8    | 7.23  | 1    | 1    | 1.33 | 42.35 |
|                       | 7.46 |       | 9.52 | 7.03 |      |       |
+-----------------------+------+-------+------+------+------+-------+
| Construction in       | 15   | 22.88 | 0.36 | 12   | 4.57 | 0.78  |
| process               | 4.38 |       |      | 5.79 |      |       |
+-----------------------+------+-------+------+------+------+-------+
| Total property and    | 1    | 1,5   | 5,08 | 1,55 | 1,77 | 1,0   |
| equipment at          | 0,97 | 17.94 | 7.57 | 8.81 | 4.55 | 36.57 |
|                       | 5.44 |       |      |      |      |       |
| revaluation           |      |       |      |      |      |       |
+-----------------------+------+-------+------+------+------+-------+
| Less : Accumulated    | (3   | (74   | (1   | (498 | (870 | (16   |
| depreciation          | ,550 | 0.07) | ,273 | .91) | .92) | 7.43) |
|                       | .59) |       | .26) |      |      |       |
+-----------------------+------+-------+------+------+------+-------+
| Property and          | 7,42 | 7     | 3,81 | 1,05 | 90   | 8     |
| equipment             | 4.85 | 77.87 | 4.31 | 9.90 | 3.63 | 69.14 |
+-----------------------+------+-------+------+------+------+-------+
| Provision for         | (77  | (4    | (24  | -    | (9   | -     |
| impairment in value   | .00) | 3.20) | .00) |      | .80) |       |
+-----------------------+------+-------+------+------+------+-------+
| Property and          | 7,34 | 7     | 3,79 | 1,05 | 89   | 8     |
| equipment, net book   | 7.85 | 34.67 | 0.31 | 9.90 | 3.83 | 69.14 |
| value                 |      |       |      |      |      |       |
+-----------------------+------+-------+------+------+------+-------+

  Laguna Resorts & Hotels Public Company Limited.

As at 31^(st) December 2004, the assets of LRH consisted of land at
Sunsai, Chiang Mai of 372-1-40 Rai and land at Bangtao Bay, Phuket of
51-2-94.1 Rai which is the site of the Dusit Laguna Resort (consisting
of buildings, furniture, fixtures and equipment) and Canal Village. The
following area is under mortgage with the bank:

-   51-2-94.1 Rai mortgaged with Siam Commercial Bank Public Co., Ltd.

  The net book value of the assets of the Company amounted to Baht
  734.67 million as at 31^(st) December 2004.

  The value of the land at Sunsai, Chiang Mai, and land and buildings of
  the Dusit Laguna Resort as appraised by Simon Lim & Partner Ltd. on
  1^(st) November 2004 was Baht 658.14 million. This appraisal valuation
  has been included in the company financial statements for the year
  ended 31^(st) December 2004.

Subsidiary Companies

  Laguna Grande Limited and its subsidiary companies

  As at 31^(st) December 2004, the assets consisted of 1,666-0-36.7 Rai
  of land owned by Laguna Grande Limited and its subsidiary companies at
  Bangtao Bay, Phuket, which is the site of the Sheraton Grande Laguna
  Phuket Hotel (consisting of buildings, furniture, fixtures and
  equipment and condominiums), the Laguna Phuket Golf Club and land
  awaiting future development. Some areas are under mortgage with banks
  / financial institutions as follows:

-   382-2-26.6 Rai mortgaged with Siam Commercial Bank Public Co., Ltd.;

-   94-3-97.1 Rai mortgaged with Kasikorn Bank Public Co., Ltd.; and

-   49-3-44.6 Rai mortgaged with Bangkok Bank Public Co., Ltd.

  The net book value of the assets of owned by Laguna Grande Limited and
  its subsidiary companies amounted to Baht 3,790.31 million as at
  31^(st) December 2004.

  The value of the land and buildings of the Sheraton Grande Laguna
  Phuket, land of the Laguna Phuket Golf Club and land awaiting
  development as appraised by Simon Lim & Partner Ltd. on 1^(st)
  November 2004 was Baht 3,800.62 million. This appraisal valuation has
  been included in the company financial statements for the year ended
  31^(st) December 2004.

  Laguna Banyan Tree Limited and its subsidiary companies

  As at 31^(st) December 2004, the assets of the company comprise the
  Banyan Tree Phuket Resort located at Bangtao Bay, Phuket which
  consists of buildings, furniture, fixtures and equipment and Lijiang
  Banyan Tree Hotel located in China which consists of land on which the
  construction of the hotel commenced in late 2004.

The net book value of the assets of owned by Laguna Banyan Tree Limited
and its subsidiary companies amounted to Baht 1,059.90 million, as at
31^(st) December 2004.

The appraisal value of the buildings of Banyan Tree Phuket as assessed
by Simon Lim & Partner Co., Ltd. on 1^(st) November 2004 was Baht 923.17
million. This appraisal excluded the Lijiang Banyan Tree Hotel located
in China (net book value at 31 December 2004: 21.64 million). The above
appraisal value has been shown in the company financial statements for
the year ended 31^(st) December 2004.

  Laguna Beach Club Limited and its subsidiary company

As at 31^(st) December 2004, the assets of the company comprise the
Laguna Beach Resort located at Bangtao Bay, Phuket which consists of
buildings, furniture, fixtures and equipment. The land on which the
hotel is situated belongs to Laguna (1) Co., Ltd., which is 100% owned
by Laguna Beach Club Ltd.

The book value of the assets owned by Laguna Beach Club Limited and its
subsidiary company amounted to Baht 893.83 million as at 31^(st)
December 2004.

The value of the land and buildings of the Laguna Beach Resort as
appraised by Simon Lim & Partner Co., Ltd. on 1^(st) November 2004 was
Baht 887.24 Million. The above appraisal value has been shown in the
company financial statements for the year ended 31^(st) December 2004.

TWR Holdings Limited and its subsidiary companies, and other subsidiary
companies

As at 31^(st) December 2004, the assets of the company and its
subsidiary companies, and other subsidiary companies, consists of land,
land awaiting future development, buildings and equipment. The following
area is under mortgage of the bank:

-   44-3-4.1 Rai being mortgaged with Siam Commercial Bank Public Co.,
    Ltd.

These assets have a net book value of Baht 869.14 million as at 31^(st)
December 2004. The land which is the site of Laguna Phuket and property
development in Chiang Rai and Mae Hong Sorn belong to the subsidiary
companies of TWR-Holdings Limited of Phuket Resort Development Co.,
Ltd., Pai Samart Development Co., Ltd., Mae Chan Property Co., Ltd. and
Thalang Development Co., Ltd.

The valuations as performed by Simon Lim & Partner Ltd. on 1^(st)
November 2004 are included as Attachment 4.

INVESTMENTS

The interests of LRH (both direct and indirect) in its investments in
subsidiary, associate and other companies as at 31 December 2004 are
summarised below.

+----------+---------+------+------+----+-----+-----+--------+---+
| Company  | Type of | Pai  | % of | Ye | Inv | I   | Shareh | N |
| name     | b       | d-up | s    | ar | est | nve | olders | o |
|          | usiness | cap  | hare | in | men | stm | which  | t |
|          |         | ital | hold | ve | t - | ent | hold   | e |
|          |         |      | -ing | st | c   | –   | more   |   |
|          |         | (Mil |      | ed | ost | equ | than   |   |
|          |         | lion |      |    | met | ity | 10 %   |   |
|          |         |      |      |    | hod | met |        |   |
|          |         | B    |      |    |     | hod |        |   |
|          |         | aht) |      |    | (M  | (M  |        |   |
|          |         |      |      |    | ill | ill |        |   |
|          |         |      |      |    | ion | ion |        |   |
|          |         |      |      |    | Ba  | Ba  |        |   |
|          |         |      |      |    | ht) | ht) |        |   |
+----------+---------+------+------+----+-----+-----+--------+---+
| Subs     |         |      |      |    |     |     |        |   |
| idiaries |         |      |      |    |     |     |        |   |
+----------+---------+------+------+----+-----+-----+--------+---+
| TWR-     | Inv     | 1,25 | 10   | 19 | 1,  | 1,  |        |   |
| Holdings | estment | 0.00 | 0.00 | 93 | 250 | 194 |        |   |
| Ltd.     | holding |      |      |    | .00 | .25 |        |   |
+----------+---------+------+------+----+-----+-----+--------+---+
| Laguna   | Time    | 33   | 10   | 19 | 330 | 512 |        |   |
| Holiday  | share   | 0.00 | 0.00 | 94 | .00 | .95 |        |   |
| Club     | b       |      |      |    |     |     |        |   |
| Ltd.#    | usiness |      |      |    |     |     |        |   |
+----------+---------+------+------+----+-----+-----+--------+---+
| Laguna   | Dormant | 0.50 | 10   | 19 | 0   | (0. |        |   |
| Sports   |         |      | 0.00 | 94 | .50 | 03) |        |   |
| Ltd.     |         |      |      |    |     |     |        |   |
+----------+---------+------+------+----+-----+-----+--------+---+
| Laguna   | Op      | 1,00 | 10   | 19 | 914 | 2,  |        |   |
| Grande   | erating | 0.00 | 0.00 | 93 | .45 | 471 |        |   |
| Ltd.     | a golf  |      |      |    |     | .93 |        |   |
|          | club    |      |      |    |     |     |        |   |
|          | and     |      |      |    |     |     |        |   |
|          | p       |      |      |    |     |     |        |   |
|          | roperty |      |      |    |     |     |        |   |
|          | deve    |      |      |    |     |     |        |   |
|          | lopment |      |      |    |     |     |        |   |
+----------+---------+------+------+----+-----+-----+--------+---+
| Laguna   | Provide | 9    | 8    | 19 | 22  | 27  |   LRH  | ( |
| Service  | ut      | 0.50 | 6.45 | 91 | .35 | .92 |   =    | 2 |
| Co.,     | ilities |      |      |    |     |     |        | ) |
| Ltd.     | and     |      |      |    |     |     |  24.7% |   |
|          | other   |      |      |    |     |     |        |   |
|          | s       |      |      |    |     |     |   BGL  |   |
|          | ervices |      |      |    |     |     |   =    |   |
|          | to      |      |      |    |     |     |   31.1 |   |
|          | hotels  |      |      |    |     |     |   %    |   |
|          | of the  |      |      |    |     |     |        |   |
|          | Company |      |      |    |     |     |   LBC  |   |
|          | and     |      |      |    |     |     |   =    |   |
|          | subsi   |      |      |    |     |     |   27.1 |   |
|          | diaries |      |      |    |     |     |   %    |   |
|          |         |      |      |    |     |     |        |   |
|          |         |      |      |    |     |     |   LBTL |   |
|          |         |      |      |    |     |     |   =    |   |
|          |         |      |      |    |     |     |   17.1 |   |
|          |         |      |      |    |     |     |   %    |   |
+----------+---------+------+------+----+-----+-----+--------+---+
| Banyan   | Sales   | 7.75 | 5    | 19 | 3   | 49  | BTHL = |   |
| Tree     | of      |      | 1.00 | 94 | .95 | .72 | 49%    |   |
| Gallery  | merc    |      |      |    |     |     |        |   |
| (T       | handise |      |      |    |     |     |        |   |
| hailand) |         |      |      |    |     |     |        |   |
| Ltd.     |         |      |      |    |     |     |        |   |
+----------+---------+------+------+----+-----+-----+--------+---+
| We       | Dormant | 1.00 | 5    | 19 | 0   | 1   | WCE =  |   |
| nco-Thai |         |      | 1.00 | 93 | .51 | .66 | 49%    |   |
| Ltd.     |         |      |      |    |     |     |        |   |
+----------+---------+------+------+----+-----+-----+--------+---+
| Banyan   | Sales   | S$   | 5    | 19 | 3   | 23  | BTHL = | ( |
| Tree     | of      | 0.43 | 1.00 | 94 | .95 | .25 | 49%    | 5 |
| Gallery  | merc    |      |      |    |     |     |        | ) |
| (Si      | handise |      |      |    |     |     |        |   |
| ngapore) |         |      |      |    |     |     |        |   |
| Ltd.     |         |      |      |    |     |     |        |   |
+----------+---------+------+------+----+-----+-----+--------+---+
| Laguna   | P       | 0.10 | 10   | 20 | 46  | 143 |        |   |
| (3) Ltd. | roperty |      | 0.00 | 01 | .42 | .04 |        |   |
|          |         |      |      |    |     |     |        |   |
|          | deve    |      |      |    |     |     |        |   |
|          | lopment |      |      |    |     |     |        |   |
+----------+---------+------+------+----+-----+-----+--------+---+
| Cheer    | Inv     | HK$  | 10   | 20 | -   | (9. |        | ( |
| Golden   | estment | -    | 0.00 | 02 |     | 13) |        | 5 |
| Ltd.     | holding |      |      |    |     |     |        | ) |
+----------+---------+------+------+----+-----+-----+--------+---+

# formerly Allamanda Vacation Club Limited

+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Company name | Type  | P   | %   | Ye | Inv | I   | Shareh | N |
|              | of    | aid | of  | ar | est | nve | olders | o |
|              | bus   | -up | s   | In | men | stm | which  | t |
|              | iness | c   | har | ve | t - | ent | hold   | e |
|              |       | api | eho | st | c   | –   | more   |   |
|              |       | tal | ld- | ed | ost | equ | than   |   |
|              |       | (M  |     |    | met | ity | 10 %   |   |
|              |       | ill | ing |    | hod | met |        |   |
|              |       | ion |     |    |     | hod |        |   |
|              |       | Ba  |     |    | (M  | (M  |        |   |
|              |       | ht) |     |    | ill | ill |        |   |
|              |       |     |     |    | ion | ion |        |   |
|              |       |     |     |    | Ba  | Ba  |        |   |
|              |       |     |     |    | ht) | ht) |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Subsidiaries |       |     |     |    |     |     |        |   |
| held through |       |     |     |    |     |     |        |   |
| TWR-Holdings |       |     |     |    |     |     |        |   |
| Ltd.         |       |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Pai Samart   | Pro   | 28  | 100 | 19 | -   | (   |        |   |
| Development  | perty | .40 | .00 | 90 |     | 39. |        |   |
| Co.,Ltd      | d     |     |     |    |     | 81) |        |   |
|              | evelo |     |     |    |     |     |        |   |
|              | pment |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Mae Chan     | Pro   | 232 | 100 | 19 | -   | (3  |        |   |
| Property     | perty | .30 | .00 | 90 |     | 56. |        |   |
| Co.,Ltd.     | d     |     |     |    |     | 97) |        |   |
|              | evelo |     |     |    |     |     |        |   |
|              | pment |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Phuket       | Pro   | 41  | 100 | 19 | -   | 205 |        |   |
| Resort       | perty | .40 | .00 | 96 |     | .53 |        |   |
| Development  | d     |     |     |    |     |     |        |   |
| Ltd.         | evelo |     |     |    |     |     |        |   |
|              | pment |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Laguna       | Hotel | 500 | 100 | 19 | 835 | 532 |        | ( |
| Banyan Tree  | opera | .00 | .00 | 92 | .14 | .79 |        | 3 |
| Ltd.         | tions |     |     |    |     |     |        | ) |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| PCD Ltd.     | Do    | 0   | 100 | 19 | -   | (   |        |   |
|              | rmant | .10 | .00 | 94 |     | 11. |        |   |
|              |       |     |     |    |     | 33) |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Laguna Beach | Hotel | 200 | 60  | 19 | 85  | 386 | PR(T)  | ( |
| Club Ltd.    | opera | .00 | .00 | 93 | .00 | .70 | = 40%  | 1 |
|              | tions |     |     |    |     |     |        | ) |
|              |       |     |     |    |     |     |        | , |
|              |       |     |     |    |     |     |        | ( |
|              |       |     |     |    |     |     |        | 3 |
|              |       |     |     |    |     |     |        | ) |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Laguna (1)   | Pro   | 15  | 60  | 19 | -   | 106 | PR(T)  | ( |
| Ltd.         | perty | .00 | .00 | 93 |     | .64 | = 40%  | 1 |
|              | d     |     |     |    |     |     |        | ) |
|              | evelo |     |     |    |     |     |        | , |
|              | pment |     |     |    |     |     |        | ( |
|              |       |     |     |    |     |     |        | 3 |
|              |       |     |     |    |     |     |        | ) |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| PT AVC       | Has   | U   | 100 | 20 | -   | (3. |        | ( |
| Indonesia    | not   | S$0 | .00 | 02 |     | 11) |        | 5 |
|              | yet   | .70 |     |    |     |     |        | ) |
|              | ope   |     |     |    |     |     |        |   |
|              | rated |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Talang       | Pro   | 251 | 50  | 20 | -   | 3   | SB (3) |   |
| Development  | perty | .00 | .00 | 02 |     | .22 | = 50%  |   |
| Co., Ltd.    | d     |     |     |    |     |     |        |   |
|              | evelo |     |     |    |     |     |        |   |
|              | pment |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Lijiang      | Hotel | U   | 70  | 20 | -   | (5. | BTHL = | ( |
| Banyan Tree  | opera | S$8 | .00 | 03 |     | 23) | 30%    | 5 |
| Hotel        | tions | .15 |     |    |     |     |        | ) |
| Co.,Ltd.     |       |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Twin Waters  | Pro   | 214 | 100 | 20 | -   | 288 |        |   |
| Development  | perty | .37 | .00 | 03 |     | .37 |        |   |
| Co.,Ltd.     | d     |     |     |    |     |     |        |   |
|              | evelo |     |     |    |     |     |        |   |
|              | pment |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Subsidiaries |       |     |     |    |     |     |        |   |
| held through |       |     |     |    |     |     |        |   |
| Laguna       |       |     |     |    |     |     |        |   |
| Grande Ltd.  |       |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Bangtao (1)  | Pro   | 20  | 100 | 19 | -   | 70  |        |   |
| Ltd.         | perty | .93 | .00 | 90 |     | .81 |        |   |
|              | d     |     |     |    |     |     |        |   |
|              | evelo |     |     |    |     |     |        |   |
|              | pment |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Bangtao (2)  | Pro   | 19  | 100 | 19 | -   | 99  |        |   |
| Ltd.         | perty | .10 | .00 | 90 |     | .65 |        |   |
|              | d     |     |     |    |     |     |        |   |
|              | evelo |     |     |    |     |     |        |   |
|              | pment |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Bangtao (3)  | Pro   | 7   | 100 | 19 | -   | 91  |        |   |
| Ltd.         | perty | .75 | .00 | 90 |     | .98 |        |   |
|              | d     |     |     |    |     |     |        |   |
|              | evelo |     |     |    |     |     |        |   |
|              | pment |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Bangtao (4)  | Pro   | 14  | 100 | 19 | -   | 185 |        |   |
| Ltd.         | perty | .55 | .00 | 90 |     | .40 |        |   |
|              | d     |     |     |    |     |     |        |   |
|              | evelo |     |     |    |     |     |        |   |
|              | pment |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Bangtao      | Pro   | 80  | 100 | 19 | -   | 1,  |        |   |
| Development  | perty | .00 | .00 | 90 |     | 067 |        |   |
| Ltd.         | d     |     |     |    |     | .35 |        |   |
|              | evelo |     |     |    |     |     |        |   |
|              | pment |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Laguna       | Has   | 1   | 100 | 20 | -   | (0. |        |   |
| Central Ltd. | not   | .00 | .00 | 01 |     | 09) |        |   |
|              | yet   |     |     |    |     |     |        |   |
|              | ope   |     |     |    |     |     |        |   |
|              | rated |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Bangtao      | Hotel | 1,  | 100 | 20 | -   | 690 |        |   |
| Grande Ltd.  | Opera | 546 | .00 | 01 |     | .00 |        |   |
|              | tions | .00 |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
|              |       |     |     |    | 3,  | 7,  |        |   |
|              |       |     |     |    | 492 | 727 |        |   |
|              |       |     |     |    | .27 | .46 |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+

+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Company name | Type  | P   | %   | Ye | Inv | I   | Shareh | N |
|              | of    | aid | of  | ar | est | nve | olders | o |
|              | bus   | -up | s   | In | men | stm | which  | t |
|              | iness | c   | har | ve | t - | ent | hold   | e |
|              |       | api | eho | st | c   | –   | more   |   |
|              |       | tal | ld- | ed | ost | equ | than   |   |
|              |       | (M  | ing |    | met | ity | 10 %   |   |
|              |       | ill |     |    | hod | met |        |   |
|              |       | ion |     |    |     | hod |        |   |
|              |       | Ba  |     |    | (M  | (M  |        |   |
|              |       | ht) |     |    | ill | ill |        |   |
|              |       |     |     |    | ion | ion |        |   |
|              |       |     |     |    | Ba  | Ba  |        |   |
|              |       |     |     |    | ht) | ht) |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Associates   |       |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Ownrep       | Do    | S$  | 50  | 19 | 18  | -   | TRL =  | ( |
| Project      | rmant | 2   | .00 | 91 | .11 |     | 50%    | 4 |
| Services     |       | .00 |     |    |     |     |        | ) |
| Pte. Ltd.    |       |     |     |    |     |     |        | ( |
|              |       |     |     |    |     |     |        | 5 |
|              |       |     |     |    |     |     |        | ) |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
|              |       |     |     |    | 18  | -   |        |   |
|              |       |     |     |    | .11 |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Other        |       |     |     |    |     |     |        |   |
| investments  |       |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Tropical     | Inves | US$ | 19  | 19 | -   | -   | TWC =  | ( |
| Resorts      | tment | 50  | .80 | 90 |     |     | 19.8%  | 4 |
| Limited      | ho    | .50 |     |    |     |     |        | ) |
|              | lding |     |     |    |     |     | JAIC = | ( |
|              |       |     |     |    |     |     | 18.8%  | 5 |
|              |       |     |     |    |     |     |        | ) |
|              |       |     |     |    |     |     | Kilby  |   |
|              |       |     |     |    |     |     | = 30%  |   |
|              |       |     |     |    |     |     |        |   |
|              |       |     |     |    |     |     | CFC =  |   |
|              |       |     |     |    |     |     | 11.6 % |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Thai Wah     | C     | 785 | 12  | 19 | 29  | -   |        | ( |
| Public Co.,  | ommod | .36 | .52 | 88 | .89 |     |        | 3 |
| Ltd.         | ities |     |     |    |     |     |        | ) |
|              |       |     |     |    |     |     |        | ( |
|              |       |     |     |    |     |     |        | 6 |
|              |       |     |     |    |     |     |        | ) |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| TRL          | Inves | U   | 19  | 20 | 188 | -   | GSI =  | ( |
| Investment   | tment | S$0 | .80 | 03 | .43 |     | 19.8%  | 4 |
| Ltd.         | ho    | .01 |     |    |     |     |        | ) |
|              | lding |     |     |    |     |     | CFC =  | ( |
|              |       |     |     |    |     |     | 11.6%  | 5 |
|              |       |     |     |    |     |     |        | ) |
|              |       |     |     |    |     |     | CI =   |   |
|              |       |     |     |    |     |     | 48.8%  |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Hua Hin      | Hotel | 1   | 10  | 20 | 1   | -   | Ms.    |   |
| Beach        | Opera | .00 | .00 | 03 | .00 |     | Jar    |   |
| Resorts      | tions |     |     |    |     |     | asspim |   |
| Co.,Ltd      |       |     |     |    |     |     | Lipta  |   |
|              |       |     |     |    |     |     | punlop |   |
|              |       |     |     |    |     |     | = 85%  |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
|              |       |     |     |    | 219 | -   |        |   |
|              |       |     |     |    | .32 |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
|              |       |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
|              |       |     |     |    | 3,  | 7,  |        |   |
|              |       |     |     |    | 729 | 727 |        |   |
|              |       |     |     |    | .70 | .46 |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+

  Remarks:

  1. The company has recognised its effective interest in this
  subsidiary at 50% in accordance with the profit sharing percentage in
  the Articles of Association.

  2. Both direct and indirect shareholding in Laguna Services Co., Ltd.

  3. Both direct and indirect shareholding by LRH and TWRH.

  4. Indirect shareholding through TWRH.

  5. Paid-up share capital of investment in foreign companies are
  presented in foreign currencies in million Singapore, Hong Kong or
  United States dollars.

  6. Market value of investment in TWC as at 31^(st) December 2004 is
  Baht 3.04 per share.

  Abbreviations

  ------ ------------------------------ ------- ----------------------------
  BGL    = Bangtao Grande Ltd.          Kilby   = Kilby Associates Limited

  BTHL   = Banyan Tree Holdings Pte     PR(T)   = Pacific Resort (Thailand)
         Ltd.                                   Co., Ltd.

  CFC    = Chang Fung Co., Ltd.         SB (3)  = Sangchan Business (3)
                                                Co.,Ltd.

  JAIC   = Japan Asia Investments Corp. TRL     = Tropical Resorts Ltd.
         Fund                                   

  LBC    = Laguna Beach Club Ltd.       TWC     = Thai Wah Public Co., Ltd.

  LBTL   = Laguna Banyan Tree Ltd.      TWRH    = TWR – Holdings Limited.

  LRH    = Laguna Resorts & Hotels      WCE     = Wah Chang Engineering
         Public Co., Ltd.                       Corp. Ltd.

  GSI    = Gold Sand Investments Ltd.   CI      = Chang Fung Investments
                                                Ltd.

                                                
  ------ ------------------------------ ------- ----------------------------

 

NET ASSET VALUE

+-----------------------------------+------------------+---------------+
|                                   | Million Baht     | Value per     |
|                                   |                  | share         |
|                                   |                  |               |
|                                   |                  | (Baht)        |
+-----------------------------------+------------------+---------------+
| Assets                            | 7,524.44         |               |
+-----------------------------------+------------------+---------------+
| Add : Revaluation of hotel        | 1,985.99         |               |
| properties and land               |                  |               |
+-----------------------------------+------------------+---------------+
| Total assets                      | 9,510.43         | 112.32        |
+-----------------------------------+------------------+---------------+
| Less : Total liabilities          | (1,709.45)       | (20.19)       |
+-----------------------------------+------------------+---------------+
| Net Assets                        | 7,800.98         | 92.13         |
+-----------------------------------+------------------+---------------+
| Less : Commitments which may      | -                | -             |
| occur                             |                  |               |
+-----------------------------------+------------------+---------------+
| Net Asset Value                   | 7,800.98         | 92.13         |
+-----------------------------------+------------------+---------------+

  Remark: The company and the subsidiaries company do not have any
  contingent liabilities relating to the execution of any guarantee or
  mortgage to any party which is not either the company or its
  subsidiary companies.

2.  Developing of real estate summary

+-----------+---------+------+---+----+------+----------+-----+----+
| Project   | Company | Pro  | T | Ou | Area | Land     | Ex  | I  |
|           |         | ject | o | ts |      | owner    | pec | nv |
|           |         |      | t | ta | (Rai |          | ted | es |
|           |         | Type | a | n- | -Nga |          | Per | t- |
|           |         |      | l | di | n-Sq |          | iod | me |
|           |         |      | U | ng | .w.) |          | to  | nt |
|           |         |      | n | U  |      |          | Se  | V  |
|           |         |      | i | ni |      |          | ll/ | al |
|           |         |      | t | ts |      |          |     | ue |
|           |         |      | s |    |      |          | D   |    |
|           |         |      |   |    |      |          | eve | (M |
|           |         |      |   |    |      |          | lop | il |
|           |         |      |   |    |      |          |     | li |
|           |         |      |   |    |      |          |     | on |
|           |         |      |   |    |      |          |     |    |
|           |         |      |   |    |      |          |     | B  |
|           |         |      |   |    |      |          |     | ah |
|           |         |      |   |    |      |          |     | t) |
+-----------+---------+------+---+----+------+----------+-----+----+
| Island    | Laguna  | C    | 5 | -  | 4-1  | Laguna   | -   | 1  |
| Villas    | Grande  | ondo | 2 |    | -4.5 | Grande   |     | 84 |
|           | Ltd.    | mi   |   |    |      | Ltd.     |     |    |
|           |         | nium |   |    |      |          |     |    |
+-----------+---------+------+---+----+------+----------+-----+----+
| The       | Laguna  | C    | 9 | -  | 9-0  | Laguna   | -   | 2  |
| Allamanda | Grande  | ondo | 5 |    | -2.9 | Grande   |     | 42 |
| 1         | Ltd.    | mi   |   |    |      | Ltd.     |     |    |
|           |         | nium |   |    |      |          |     |    |
+-----------+---------+------+---+----+------+----------+-----+----+
| The       | Laguna  | C    | 1 | -  | 1    | Laguna   | -   | 4  |
| Allamanda | Grande  | ondo | 4 |    | 2-1- | Grande   |     | 93 |
| 2&3       | Ltd.    | mi   | 1 |    | 59.7 | Ltd.     |     |    |
|           |         | nium |   |    |      |          |     |    |
+-----------+---------+------+---+----+------+----------+-----+----+
| Laguna    | Laguna  | Land | 5 | -  | 6    | Laguna   | -   | 66 |
| Homes     | Grande  |      | 4 |    | 7-2- | Grande   |     |    |
|           | Ltd.    |      |   |    | 63.9 | Ltd.     |     |    |
+-----------+---------+------+---+----+------+----------+-----+----+
| Laguna    | Laguna  | Land | 1 | -  | 1    | Laguna   | -   | 1  |
| R         | Grande  | &    | 9 |    | 8-0- | Grande   |     | 89 |
| esidences | Ltd.    | h    |   |    | 59.0 | Ltd.     |     |    |
| 1         |         | ouse |   |    |      |          |     |    |
+-----------+---------+------+---+----+------+----------+-----+----+
| Laguna    | Twin    | Land | 1 | -  | 2    | Twin     | -   | 1  |
| R         | Waters  | &    | 9 |    | 1-0- | Waters   |     | 90 |
| esidences | Deve    | h    |   |    | 58.8 | Dev      |     |    |
| 2         | lopment | ouse |   |    |      | elopment |     |    |
|           | Co.,    |      |   |    |      | Co.,     |     |    |
|           | Ltd.    |      |   |    |      | Ltd.     |     |    |
+-----------+---------+------+---+----+------+----------+-----+----+
| Laguna    | Laguna  | Land | 1 | -  | 7-3- | Twin     | -   | 1  |
| Townhomes | Grande  | &    | 8 |    | 87.9 | Waters   |     | 45 |
| 1         | Ltd.    | h    |   |    |      | Dev      |     |    |
|           |         | ouse |   |    |      | elopment |     |    |
|           |         |      |   |    |      | Co.,     |     |    |
|           |         |      |   |    |      | Ltd.     |     |    |
+-----------+---------+------+---+----+------+----------+-----+----+
| Laguna    | Laguna  | Land | 2 | -  | 7-1- | Laguna   | -   | 1  |
| Townhomes | Holiday | &    | 4 |    | 15.2 | Holiday  |     | 90 |
| 2         | Club    | h    |   |    |      | Club     |     |    |
|           | Limited | ouse |   |    |      | Limited  |     |    |
+-----------+---------+------+---+----+------+----------+-----+----+
| Banyan    | Laguna  | V    | 1 | -  | 2    | Bang Tao | -   | 1  |
| Tree 2    | Banyan  | illa | 2 |    | -2-1 | Dev      |     | 14 |
| Bedroom   | Tree    |      |   |    | 5.54 | elopment |     |    |
| Villas -  | Ltd.    |      |   |    |      | Co.,     |     |    |
| Phase 1   |         |      |   |    |      | Ltd.     |     |    |
+-----------+---------+------+---+----+------+----------+-----+----+
| Banyan    | Laguna  | V    | 1 | 14 | 2-   | Bang Tao | 3   | 2  |
| Tree 2    | Banyan  | illa | 4 |    | 3-96 | Dev      | ye  | 10 |
| Bedroom   | Tree    |      |   |    |      | elopment | ars |    |
| Villas -  | Ltd.    |      |   |    |      | Co.,     |     |    |
| Phase 2   |         |      |   |    |      | Ltd.     |     |    |
+-----------+---------+------+---+----+------+----------+-----+----+

Island Villas are located at 10 Moo 4 Srisoontorn Road, Cherngtalay
District, Amphur Talang, Phuket Province.

  The Allamanda is located at 29 Moo 4 Cherngtalay District, Amphur
  Talang, Phuket Province.

  Laguna Homes are located at Moo 4 Srisoontorn Road, Cherngtalay
  District, Amphur Talang, Phuket Province.

    The Laguna Residences and Laguna Townhomes projects are located at
    Moo 4 Srisoontorn Road, Cherngtalay District, Amphur Talang, Phuket
    Province.

    Banyan Tree - 2 Bedroom Villas are located at 33 Moo 4, Srisoontorn
    Road, Cherngtalay District, Amphur Talang, Phuket Province.

[TABLE]

  ---------------------------- -------------- ------------- --------- ---
  Project                      Income                                 
                               recognised                             
                               (Million Baht)                         

                               2004           2003          2002      

  The Allamanda 2&3            -              6             34        

  Laguna Homes                 -              7             39        

  Laguna Residences 1          82             249           58        

  Laguna Residences 2          403            -             -         

  Laguna Townhomes 1           125            111           -         

  Laguna Townhomes 2           220            -             -         
  ---------------------------- -------------- ------------- --------- ---

  ---------------------------- ------------- ------------- ---------------
  Project                      Total cash                  Amount sold to
                               received                    management or
                                                           shareholders

                               Million Baht  % of sold     
                                             value         

  Island Villas                353           100%          -

  The Allamanda 1              413           99%           -

  The Allamanda 2&3            639           96%           -

  Laguna Homes                 206           100%          -

  Laguna Residences 1          336           88%           -

  Laguna Residences 2          162           40%           -

  Laguna Townhomes 1           163           69%           -

  Laguna Townhomes 2           143           65%           -

  Banyan Tree 2 Bedroom Villas 192           96%           -
  ---------------------------- ------------- ------------- ---------------

  Details of receivables due in each project as at 31^(st) December 2004
  is as follows:

[TABLE]

  Details of overdue receivables as at 31^(st) December, 2004

[TABLE]

  Property Under Construction as at 31^(st) December 2004

  There are 14 Laguna Residences in Phase 2 under construction as at 31
  December 2004 with a total budgeted cost of construction of Baht 112
  million. Costs incurred at 31 December 2004 are Baht 108 million.

  There are 4 Laguna townhomes in Phase 1 and 24 Laguna Townhomes in
  Phase 2 under construction as at 31 December 2004 with a total
  budgeted cost of construction of Baht 26 million and Baht 168 million
  respectively. Costs incurred at 31 December 2004 are Baht 24 million
  and Baht 97 million respectively.

  There are 14 Banyan Tree 2 bedroom villas in Phase 2 which are under
  construction as at 31 December 2004 and are budgeted to cost Baht 210
  million. Costs incurred at 31 December 2004 amounted to Baht 64
  million.

  Property Projects Suspended

  Laguna Home Chiangrai Phase 1 was suspended in 1997 due to the poor
  property market. If market conditions improve the project will be
  re-started.

5.3 Intangible assets

Goodwill

On 8 January 2002, the company acquired 49 percent of the shares of
Laguna Banyan Tree Ltd. Goodwill on consolidation of Baht 501 million
which represents the excess of the purchase price over the fair value is
regarded as an asset in the balance sheet and is amortised on
straight-line basis over 20 years.

On 12 November 2001, Laguna Grande Ltd. (a subsidiary) acquired 100
percent of the shares of Bangna Place Realty Ltd. Goodwill on
consolidation of Baht 21 million which represents the excess of the
purchase price over the fair value is regarded as an asset in the
balance sheet and has been amortised on straight-line basis over 3
years.

5.4 Investment / management policy of the company and its subsidiary
companies

The current intention of management in regard to investment policy in
the company and its subsidiary companies is to pursue any investment
opportunities within Laguna Phuket and outside Laguna Phuket that
provides the shareholders with a sufficient return on investment. Such
opportunities are summarised in section 6 below.