I attended three separate conferences in September and I have found them to be very productive and useful in confirming that we are doing the right things to reach our company mission.

The first of many Round Table of Talents (RTT) for this year was initiated at The Pan Pacific Singapore. This year, we changed the concept and format of the meeting. In previous years, the meeting was attended by associates from the management level, this time we invited our front-line associates to participate instead. There were 26 associates from every section of the hotel, and to my surprise, the majority are Malaysians working in Singapore.

One month before the meeting, home work topics were given out for the participants to prepare themselves. I was pleased to note that their responses were well thought out and good quality comments and feedback were given. The associates had the opportunity to stay in the hotel during meeting and the hotel management team served and helped them to make the meeting

fruitful.

This meeting confirmed that our front-line associates are of a similar quality and calibre as the previous participants. They have shown us that we have talent in our company at all levels and we must nurture our associates to grow with Pan Pacific.

The Round Table of Talent will come to your hotel soon and we look forward to making each event as successful and beneficial to all participants as possible.

I feel that this year's conference was even a more productive and beneficial meeting than previous meetings. We covered topics which were really important to the day-to-day selling activities, such as revenue management, making reservations via the Internet, Global Distribution Systems, Guerrilla Warfare Tactics in selling and the value of using automated marketing plans.

We had also invited a panel of customers from the meetings, incentive and corporate travel planners to join us in a very valuable panel discussion where we heard them tell us what customers really want, and were we as a company doing the right things for our guests. We were pleased to hear favourable comments and yet more pleased to receive feedbacks and suggestions on how we can do better to serve our guests.

Congratulations to Maria Dempsey, Ron Drake and the team for making this meeting a success and to the team at The Mauna Lani Bay Hotel for their energy and creativity.

The Juran Institute "Impro '98"conference concentrated upon quality management and its various components which included quality control, self-directed work teams, and absolute care. I participated as a speaker and also as attendee. Through various discussion with the various other speakers and attendees at the conference, I was able to confirm that as a company, we are doing the right things.

Quality management is a tool to achieve our business goal, not a goal. Our goal is to achieve our vision through practising our Values. Years ago, we introduced our Mission, Vision and Values.

This is a business belief, a guiding principle for the company. After that, to support the achievement of the Vision and Values is the Pan Pacific Way of doing business and how everyone in our company should practise the Pan Pacific Way.

Lisa Mosher led a team of People Innovation Associates who attended and participated as well. Congratulations to Mustaff (KLIA), Catherine (KL), Shirllay (Pangkor), Kimberly (SFO) and Lorna (MLB).

When I discussed this with an expert of quality control management, I could confirm that we are on the right track.

There have been several movements of General Managers recently and I would like to share them with all of you.

Don Dickhens, previously GM of The Mauna Lani Bay Hotel and Bungalows moves to PPHR- America as Senior Vice President of Business Development based in SFO. Bill Sayce previously GM of The Pan Pacific Hotel Kuala Lumpur has taken up his new assignment as GM at The Mauna Lani Bay.

Christo Diamandopoulos has moved from The Pan Pacific Resort Pangkor to The Pan Pacific Hotel Kuala Lumpur as the new GM. Replacing him in Pangkor is Bill McNamara who was previously from Wuxi.

Ken Ide, presently General Manager of The Sari Pan Pacific Jakarta will make a move to The Pan Pacific Hotel Yokohama assisting Nejat Sarp as Assistant General Manager. Taking over in Jakarta will be Bruce Moore who is currently the Director of Operations, Business Retention and Revenue Enhancement.

Thank you.

Manila -- The Make-It-Happen afternoon was another opportunity to honor associates who

have been with the Hotel for a year. They were presented with 1-year service pins.

Whistler -- Paul Scanlon attended an intensive 2 day computer training course designed to teach Managers and systems users the maintenance of the systems.

Bangkok -- All F&B associates attended a reduce breakage and loss session. . . 29 supervisors from various departments attended Supervisory skills training. . . 210 associates attended fire prevention and control training. . . CPR, basic life support etc were some of the first aid skills taught to 4 associates from various departments on First Aid training.

Malacca -- Associates gathered to celebrate September birthday babies. Each received a

Glenmarie -- 15 Team Leaders & Assistant Managers from various departments attended a 1-day leadership program conducted by Lingam. . . All associates participated in Hot Dog & Ice Cream Eating Contests at the Casa Marie. Mohd Azlan (Keyaki) emerged winner both times!!. . . The badminton tournament saw Yusof Jani (Front Office Manager) emerge as the

champion for all three categories : Singles, Mixed (with Rina/Sales) and Doubles (with Netto/Rooms Div.). . . The inter-department volleyball tournament saw the Kitchen Team emerge as winner, Housekeeping - Runner Up & Engineering - 2nd Runner Up. . . Mazli (in- house artist) personally completed a mural painting at the heart of the house based on the Mission, Vision & Values. . . Mohd Fuad (CSSA-Keyaki Nouveau) will attend a 3 month full day programme, starting Sept. 98 on F&B Service conducted by the Human Resources Dev.

Council. . . Elvic (CSSA-Garden Terrace) & Mohd Hazir (CSSA-Keyaki Nouveau ) will attend a 3 month F&B Service programme accredited by City & Guilds London. Their exam fees will be partially supported by the hotel. . .Stevie Fernandez (Team Leader at The Glen Lounge) and Moses Englu (Banquet Sous Chef) volunteered for a 3 week F&B operations function at an annual international tennis tournament in Tashkent, Uzbekistan. . . Training sessions by the F&B Department include: Chefs Ang Kim Poh and Kamaruddin Kassim will participate in a 2 week food & cultural festival organized by the Malaysian Tourism Promotion Board in Seoul, Korea.. . . A further 15 F&B associates attended stewarding training conducted by Mr David Ho, Director of Training of Chempro technology. . . A program to lift the English language proficiency among F&B associates was launched recently. Every associate is compelled to learn 10 new English words daily. Outlet managers are equipped with dictionaries to assist associates in their endeavors to learn the language.

Vancouver -- The new Safety & Wellness programme is underway with a morning stretching routine with Housekeeping associates. The programme will be expanded to all other departments but focussing on different needs, i.e. pushing/pulling carts, lifting, typing on computers etc.

Johor Bahru -- 150 associates including the steering committee and board of operations

members went through a half-day session on the cost of poor quality. The session was conducted by Khalid Mat Din, (Director of Education Innovation).The participants gained a heightened awareness of how poor quality can negatively impact the hotel's image and business, as well as the measures each individual could take to have good quality. . . 40 associates participated in the in-house course on the Employment Act 1955. The full-day course was conducted by Mr Vivek of the Malaysian Employers Federation who has more that 20 years' experience in handling labour related matters and disciplinary procedures. He updated the participants on new amendments to the Act. . . The Sports Carnival continues with Badminton being fiercely contested. Admin.. & General came out tops, followed by

Kitchen and Stewarding, while Engineering came in third. With three more games to go, Admin. & General are currently tied with Kitchen & Stewarding with the same number of points. . . A Carroms competition attracted 32 participants from all departments. In the singles event, Razali Alias (Receiving) emerged champion, Jalil Hassan (Selasih Kitchen) was second, and Yusof Yunos (Engineering) was third. In the doubles event, Hanafi Yaakob (Kitchen) and Halim Hak (Cost Control) clinched the top spot, second placing went to Mohd Rosli and Azaiuddin (Front Office), while Razali Alias and Mohd. Affendy (Engineering) walked away with the third prize. All winners received trophies for their effort. . . 15 participants from various departments underwent a full day course in first aid conducted by the Malaysian Red Crescent Society. The course equips them with basic first aid knowledge as well as life-saving techniques including cardio pulmonary resuscitation and assisting choking victims.

Dhaka -- Seven associates from Housekeeping participated in fire fighting and safety procedure class. . . F&B and Kitchen associates attended a Medicare class to learn more about hygiene and health. . . Conversational English classes were attended by 62 associates. . . The Re-Orientation programme - The spirit of Hospitality was attended by 21 associates. . . Four orphans attended the English classes conducted by Asst. Manager, Education and Development Mrs Shahnaz Kibriya. . . 30 management level male associates attended an Executive Image for men session conducted by team members of the Education department and Kallol Group-LAKME. . .An introduction of the Career Development Institute (CDI) internal school was conducted by the Education team. . . Trainees from the Travel and Tourism Institute of Bangladesh undertook practical training on F&B production.

KL -- Zulbahrin Ahmad attended the Tokui kai programme in Japan to familiarise associates with our parent company. He also spent some time at our hotel in Yokohama to enhance his international business knowledge especially in the areas of Food and Beverage. . . Milton Paul Peris and Tan Bee Lay went to the Manila hotel to gain first hand knowledge on the Butler system to return and implement it in KL. . . Jamelah bte Abdul Kareem received cross exposure in Sales and Marketing.

Yokohama -- Mr. Chris Dunphy from The Pan Pacific Hotel Vancouver will join be on exchange starting October 1, 1998. He will join the Rooms Division-Bell/Door Department. This will provide him with the opportunity to enhance his skills, learn the Japanese culture, as

well as to promote Vancouver property to local guests.

Vancouver - Chris Dunphy (Health Club & Spa) will spend a year at the sister hotel in Yokohama.

Bangkok -- Ms Hanako Tanaka (Concierge, The Pan Pacific Yokohama) spent a month to provide assistance to the hotel guest relations and concierge sections.

Mauna Lani -- Charlene Goo has joined the hotel as the new Director of Operations.

Dhaka -- Atique Rahman who joined the hotel as Director of F&B in 1998 has been promoted to Director of Operations overseeing Rooms Division, Culinary Services and Catering.

San Francisco -- Bryan Everly joins the hotel as Sales Manager from the Sir Francis Drake Hotel. . . Craig Bentley is the new Asst. F&B Outlet Manager with 15 years experience in all phases of restaurant operations including 8 years in management positions for hotels, resorts and free standing operations.

Malacca -- Balachandran s/o G.S. Maniam and Hesham bin Hj. Mohd Yusof have been appointed Operations Manager, Property Care. Balachandran was formerly with Harbour Club, Malacca while Hesham was from The Puteri Pan Pacific Johor Bahru.

Whistler -- Leanne Leeck has been promoted from Guest Service Associate to Yield Manager. . . Shawna Merrel replaces Katherine Wood in Sales.

Nothing is particularly hard if you divide it into small jobs.

* * * * * *

Manila -- GM Andrew McBurnie, Jack Tuason (Dir. of Operations) and Ping

Valencia (Marketing & Public Relations Consultant) together with the Butlers of

the hotel were the highlights of the famed Oh No! It's Johnny Show, a top rated television show in the Philippines. The Pan Pacific Manila was featured throughout the show.

The hotel feted its top 14 clients to an early dinner reception in the Bilik Meranti on Sept.14, 1998. Playing hosts were Mr and Mrs Ichigo Umehara, GM Christo Diamandopoulos and Christopher Lee (Director of Sales). After the dinner, the party left for the Games Venue to

attend the Opening Ceremony. The hotel prepared a full bar in the coach to meet the comforts of our guests during the journey to and from the Opening Ceremony.

Malacca - The hotel played host to up and coming singers, Tan Kheng Seong or better

known as 'Aniu' and the Bukit Mertajam Boys. Currently on a concert tour around

Malaysia and Singapore.

Glenmarie -- Her Majesty, The Raja Permaisuri Agong, Tuanku Najihah (Queen of

Malaysia) celebrated her birthday at the Cenderawasih Restautant at the Club with 130 invited dignitaries. Also present was the King, who celebrated their Emerald (55th) Wedding Anniversary on the same evening.

Yokohama -- *The "Hotel & Restaurant" magazine conducted a survey to 300 university students who wish to work at a hotel by asking each to name a hotel they would like to work for. The Imperial Hotel Tokyo came in the first place, The Pan Pacific Hotel Yokohama second, and The Westin Tokyo third. . . The 53rd National Sports Festival will be held in Yokohama area for the Summer (Sept 12-15) and Autumn Festivals (Oct 24-29, 98). The Executive Committee members will be staying at the hotel during the festival. . . The 34th National Sports Games for Disabled will be held in Yokohama city on November 7th and 8th. His Imperial Highness The Crown Prince and Her Imperial Highness The Crown Princess will stay in our Pan Pacific Suite. Also, approximately 300 disabled athletes for wheelchair basketball, wheelchair tennis, swimming and archery will stay at our hotel. . . His Imperial Highness Prince Hitachi will stay in the hotel to attend The Japan Cancer Academic General Meeting at The Yokohama Pacifico Convention Center adjacent to the hotel. He will be attending as a research member of this society.

Singapore -- The celebration of the Ministry of Information and the Arts 20th year of the Speak Mandarin campaign, the hotel sponsored a 20kg cake for the event which was graced by BG George Yeo, Minister for Information and the Arts.

Dhaka -- Minister for Water Resources Mr Abdur Razzak and State Minister for Information Professor Aby Sayeed were chief guests at the Inaugural and Technical Session of DIRD Private Ltd. . . The Institute of Chartered Accountant (ICAB) organised a seminar for 600 people of which Prime Minister Sheikh Hasina was the chief guest. . . The President Justice Shahabuddin Ahmad was guest at the seminar by Rapport Bangladesh and Chamber of Industries (BCI).

Vancouver -- Celebrity guests included Rod Stewart, Oscar Peterson; VIP guests included Mr. Shimizu (Chairman of Tokyu Group) and Mrs Shimizu who brought 44 executives of the Tokyu-Kai organisation for the 1998 Annual Meeting of the Tokyu Association of USA and Canada. . . Other guests included 30 owners and drivers of the C.A.R.T. (Championship Auto Racing Team) during the Molson Indy event. Bobby Rahal, one of the great drivers raced in his last competition on the C.A.R.T. circuit.

# # # # # # #

Dhaka -- The hotel celebrated its 18th anniversary with Mr S.Kita, Vice President of PPHR as special guest. Special attractions include puppet and magic shows for children and a fashion show.

Johor Bahru -- A total of 32 persons comprising of associates and their families went on a

day-trip to Malacca organised by the Sports & Recreation Club. They had a great time at the Butterfly Farm and Crocodile Farm, as well as visiting famous historical tourist attractions such as the A'Famosa and Stadhuys. The associates also visited The Pan Pacific Legacy Malacca and were impressed. The trip was subsidised by the Sports & Recreation Club and even breakfast was provided for the participants.

Johor Bahru -- The RM138 NETT PACKAGE is available till December 31st, 1998. The rate of RM138 nett (single/double)offers accommodation in a Princess Room with buffet breakfast at The Newsroom Cafe. This rate is non-commisionable and not applicable to

conference groups.

Vancouver -- The city continues to experience a decrease in room demand primarily due to the Asian crisis. The year-to-date demand for rooms between 10 major downtown hotels is 45,000 less room nights than 1997.

Whistler -- The 1998 Whistler Jazz and Blues festival was recently held featuring some of the finest jazz and blues artists in North America including Linton Garner, one of the best jazz and blues pianists who has played with Ella Fitgerald, Miles Davis and Charlie Parker. This is part of the Whistler Summer Music Fest 98.

Malacca -- Together with MAS Golden Holidays, the team played host to a media fam trip

from Denpasar, Indonesia. The crew from various travel agencies in Indonesia are looking into promoting Malacca as a destination for guests flying out from Indonesia as well as Indonesians themselves. . . The Malacca Explorer Club had their first "Getting to Know You" Cocktail Party at the Pacific Ballroom, Level 6. A fun-filled evening with lots of games and

activities. Each attendee went home with a 2 days 1 night complimentary stay in a Deluxe Room. Other sister hotels in Malaysia and Singapore also contributed 3 days 2 nights stay voucher each to the winners of the Lucky Draw.

Singapore -- The hotel hosted dinner and site inspection for some key corporate travel agents from Tokyo who were invited to witness the inauguration of Singapore Airlines new flight model. . . Beginning 1 October, the hotel joined the 7 sister hotels in Malaysia in the Explorer Club. The 3000 members will now be able to make reservations at The Pan Pacific Singapore and earn points for materialised bookings. . . The sales team invited 20 top supporting clients and their spouses to a cocktail reception followed by a Singapore Symphony Orchestra Concert at the Victoria Concert Hall. The concert was conducted by the highly acclaimed guest conductor Christopher Seaman and guest pianist Howard Shelly.

Bangkok -- The Raft week was held at the Prachinburi Province of Thailand to promote eco-adventure tourism. . . The hotel invited delegates to the 13th Congress of Secretaries in Asia to attend a site inspection of the hotel.

Glenmarie -- The hotel hosted accommodation for a group of 11 Korean Travel Agents on a Fam trip organised by MTPB & MAS Korea. The group also witnessed the opening of the Commonwealth Games at the Bukit Jalil National Stadium.

Kuala Lumpur -- In conjunction with XVI Commonwealth Games, Resorts World Berhad

offered complimentary shuttle service from various city hotels in Kuala Lumpur to Genting, from Mondays through Fridays (excluding public holidays). The Pan Pacific Hotel Kuala Lumpur is one of the five participating hotel, it being the first pick up point of the day. . . The Sajian Jelita/The Pan Pacific Hotel Kuala Lumpur Cooking Demonstration saw local celebrity chef Sallehuddin from the Mara Institute of Technology on hand. This was held at the Pacific Ballroom. He shared with participants the many ways to cook using local sauces. The event was witnessed by members of Sajian Jelita, Explorer Club members and hotel associates. On hand to demonstrate his cooking skills was Chef Zamani from the hotels Selera Restaurant who showcased several Malay wedding dishes. . . Explorer Club members will enjoy double bonus points for every materialised booking for the months of August and December.

Kuala Lumpur -- A 75% off deluxe rooms rack rates is being offered for all airline and travel agency personnel until December 31, 1998. Rates are subject to space availability and 15% taxes; and is not applicable for meeting, incentive, conference and exhibition bookings. . . The Pacific Ball Package is valid until January 1, 1999 for party planners. Priced at RM45 nett per person, the package offers a choice of Chinese and International Buffet menus plus a host of attractive items.

Malacca -- The Residential Business Package offers RM138.00nett per person for one night stay in a Superior Room (twin-share) with of breakfast, use of a function room with basic amenities, 2 teabreaks and a choice of set lunch in Silk or Saffron. Dinner supplement at RM30.00nett only. . . A Full day meeting package of RM50.00nett per person includes 2 teabreaks and 1 lunch. . . The Half day package of RM19.00nett per person includes 1 teabreak.

Dhaka -- The Weekend Local Plus Package for local residents and expatriates offers US$65 (single/double for deluxe room) for a maximum of 2 nights inclusive breakfast and use of pool and health club. . . The Day Use package offers US$45 for deluxe room up to 4 hours, US$55 to 6 hours and US$65 over 6 hours. Check in and out between 7am to 9pm daily. . . The Value Plus package offers guests breakfast at Cafe Bazar or private dining and laundry/dry clean for an additional US$15++ per night per person.

Yokohama -- Our First Celebration package was a great success, therefore, it has been extended by one more month. Result were July:315 R/N, August:999 R/N and September(On hand): 256 R/N. . . A special Christmas Package Plan with a ticket for Katherine Battle (famous opera singer) Christmas Concert to be held at the Minato-Mirai Hall adjacent to the hotel. Valid from 22 - 24 Dec., 98, the rates per person are - Plan A: "Concert with Japanese Kaiseki Dinner" at 58,000 (Incl. service charge and tax); Plan B: "Concert with In-room Dinner"at 55,000 (Incl. service charge and tax); Plan C: "Concert with Breakfast" at 46,000 (Incl. service charge and tax)

Jakarta --

Tokyu Association

Around 1970, Mr. Noboru Gotoh, then Chairman of Tokyu Corporation's Board of Directors summoned several associates to room 1001 of the Ginza Tokyu Hotel. Mr. Gotoh stated to the group, "I am organizing a corporate Public Relations Committee. I, personally, will assume leadership of the committee." Mr. Gotoh must have believed that public relations, and the internal communications within the Tokyo Group, required improvement. In April of 1972, the Tokyu Public Relations Committee Office ("TPRCO") was formalized, its objective to convey the Group's business philosophy and familiarize the public with its many enterprises, and to strengthen ties between corporations within the Group.

Generally, Japanese corporations, including Tokyu Group, structure their

organizations to manage from the top of the corporate ladder to the bottom.

Management communications are very smooth from a parent company to its subsidiaries. This form of management can best be illustrated by using weaving as an example. Textiles are woven on a loom; the "warp", a series of sturdy yarns extending lengthwise on the loom, provides a firm foundation for the "woof", the fibres used to fill the warp in the creation of fabrics. The Tokyu Group's "woof", the fill fibres, needed to be strengthened.

The Tokyu Group attempted to unify its member companies through various activities conducted by TPRCO. TPRCO commenced its campaign by sponsoring television and radio programs, and advertising in local newspapers and magazines. It also began publishing a monthly in-house Tokyu Group newsletter, issued continuously since June of 1972.

As a natural consequence of their meetings to share internal information

for mutual business purposes, clusters of Tokyu Group companies began to form for periodical get-together. Eventually, these regional groups

joined to form an official organization, "Tokyu Association". In September

1980, TPRCO undertook administration of the Association's 14 Chapters spread throughout 9 regions in Japan. Since then, TPRCO has implemented numerous public relations activities in the five largest Japanese cities. Tokyu Association has launched local public relations programs throughout Japan, and provides significant volunteer work within respective Chapter communities.

Today, the Association covers 50 areas within 11 regions including the Asia Tokyu Association ("ATA") and USA & Canada Tokyu Association ("UCTA"). The ATA includes Pan Pacific Hotels and Resorts Pte. Ltd., Tokyu Investment Singapore Pte. Ltd., Tokyu Construction Development Sdn, Bhd. and other Tokyu Group corporations in the region. The UCTA consists of Pan Pacific Hotels and Resorts America, Inc., San Francisco 109, Inc., Tokyu Canada Corporation, Tokyu Travel America, Inc. and others in the area.

Tokyu Association's purpose is to share information between member entities, and to contribute services to benefit local communities. The Association organizes meetings, social gatherings and the occasional golf tournament in each of the areas to improve communications between members. ATA has, for example, been a sponsor for the Christmas campaign in Hong Kong, visited an orphanage and presented gifts to the children,participated in a charitable bazaar in Indonesia, and implemented many other activities. UCTA Chapters clean New York City's Central Park every May, hold charitable Christmas parties for less fortunate children such as the one held at the Pan Pacific Hotel Vancouver, sponsor the Spring Concert of Hawaii Youth Symphony in suburban Honolulu, and many more events.

Mr. Noboru Gotoh said, "The Tokyu Group has a notable asset which does not appear on the Balance Sheet. It is 'Tokyu Association'." No other

corporate group has such an organization. Tokyu Group entities could create business synergy through the Tokyu Association.

Overseas Division

Tokyu Corporation

(Fax: 813-3496-6773, E-mail: mt01-tkk@t3.rim.or.jp)