REPORTS ON LENDING TO ASSOCIATED COMPANY

Siam Makro Plc. (MAKRO) said its associate, People's Health Care Co., Ltd., has been resolved at a shareholders' meeting of the company to scrap the resolution to raise the registered capital from Bt100 million to Bt200 million. Instead, the associate was resolved to borrow an amount of Bt22.5 million from MAKRO for uses in its business operation. MAKRO therefore was resolved at its board of directors' meeting no. 12 /1996 on December 26, 1996 to scrap a resolution made at the board of directors' meeting no. 7/1996 on July 18, 1996, concerning the right exercise to subscribe to new shares of People's Health Care Co., Ltd. The board also resolved to lend the amount of Bt22.5 million to People's Health Care Co., Ltd. The details and terms of this lending will be worked out by MAKRO's signatory directors. This transaction does not fall under the criteria concerning acquisition/disposition of listed company's assets, and is not covered as a connected transaction, according to SET's announcement, either. Translated by The Nation