CAUSES OF CHANGE IN PROFIT

12 May 1998
Translation May 12, 1998 Subject : Causes of change in profit To : Director and Manager Stock Exchange of Thailand Please be advised of the reasons for 26.8% reduction in profit for the first quarter of 1998 compared to the same period last year. 1.) As forecasted, the overall economic downturn continue to have a negative impact on consumer spending particularly in non-food items. Market competition remained strong thus exerting downturn pressure on margins. 2.) The performance of subsidiary businesses were not profitable resulting from the effect of the overall economy and the investment in new outlets. Yours faithfully, Siam Makro Public Company Limited