SUBMISSION OF F/S AND EXPLANATION FOR CHANGE IN PROFIT

Translation August 11, 1998 Subject : Submission of financial statements and explanation for change in profit To : Director and Manager Stock Exchange of Thailand Please find enclosed the financial statements of Siam Makro Public Company Limited and the consolidated financial statements of Siam Makro Public Company Limited and its subsidiaries for the second quater and the period of six months ended June 30, 1998. The net profit after tax for the second quarter was 139.6 million baht, 1% higher than the first quarter this year and 24.3% declined from the same period last year. This caused by the followings. 1.) Total sales for the second quarter this year slightly decreased from the same period the year before. Though food sales satisfactorily increased but was not sufficient to compensate the decline in non-food volume. This was due to the competitive environment and unrecovery of overall economy coupled with poor liquidity and high interest rate which have direct impact on consumer spending. 2.) Selling and administrative expenses increased over the same quarter last year mainly due to operational expenses and depreciation of new stores and expansion of subsidiary businesses. Yours faithfully, Siam Makro Public Company Limited