THE PREPARATION FOR YEAR 2000 COMPLIANCE

Translation The Preparation for Year 2000 Compliance - Report No. 6 Siam Makro Public Company Limited Siam Makro Public Company Limited, the operator of cash and carry business selling food and non-food products and having its Head Office located at 3498 2nd Floor, Lardprao Road, Klongchan, Bangkapi, Bangkok 10240, Tel. 375-7000 Fax 375-2789, would like to report the actions taken and current status on the preparation for year 2000 compliance as at 30 September 1999. The Preparation for Year 2000 Compliance 1. Actions Taken To prepare for the year 2000 compliance, the company and its subsidiaries have commenced the implementation plan to replace and upgrade all major computer systems as following:- Company Computer System Current Status Siam Makro Public Co., Ltd. 1. Financial & Accounting System Completed the system replacement, upgrade and year 2000 compliance test. 2. Business Operating System Completed the system replacement, upgrade and year 2000 compliance test. 3. Other Systems Completed the system replacement, upgrade and year 2000 compliance test. Makro Office Centre Co., Ltd. 1. Financial & Accounting System Completed the system upgrade and year 2000 compliance test. 2. Business Operating System Completed the system replacement, upgrade and year 2000 compliance test. 3. Other Systems Completed the system replacement, upgrade and year 2000 compliance test. Makro Auto Care Co., Ltd. 1. Financial & Accounting System Completed the system upgrade and year 2000 compliance test. 2. Business Operating System In the process of replacement with the new system. Expecting to complete and ready for year 2000 compliance test in October 1999. 3. Other Systems In the process of replacement and upgrade of PC Hardware which have been certified by the vendor for year 2000 compliance. The overall plan for system development and the preparation for year 2000 compliance are on schedule. 2. Expenses Budget 2.1 The total direct expenditure budget of the year 2000 problem resolution in the company and its subsidiaries, is estimated at Baht 17 million. As at 30 September 1999 the company and its subsidiaries recorded the total expenses of Baht 6.6 million. 2.2 In respect of other companies, with which the company and its subsidiaries are doing business, in order to ensure year 2000 compliance. The company and its subsidiaries have been examining their readiness for year 2000 compliance. In addition, the company and its subsidiaries have completed the contingency plan to protect and prepare for any problem which may occur. 3. Management Comments The preparation for the year 2000 compliance including the system developments are going well as planned. However, up to present the company and its subsidiaries do not find any problems that may cause any business disruption. The Management believe that the preparation for the year 2000 compliance will be completed and ready before the year 2000. In recognition of the year 2000 problem, the company and its subsidiary companies have made a substantial effort to protect and minimize any potential risk. However, the company and its subsidiary companies do not certify or guarantee that they will not be impacted by the year 2000 problem or any errors caused by the other factors as the results of the year 2000. Acknowledgement We have reviewed this document and agree that all details and information disclosed here are correct, complete, truthful and does not contain any misleading information which may cause any damage or loss to the shareholders. To authenticate that this is the document we have reviewed, we have authorised Mrs. Suchada Ithijarukul to sign on every pages of the document. Name Position Signature Mr. Dhanin Chearavanont Chairman ............................................ Mr. Arnold Maria Leo Tobac Vice Chairman ............................................ Mr. Jacob Cornelio Adriano de Jonge Director ............................................ Mr. Prasert Jarupanich Director ............................................ Mrs. Suchada Ithijarukul Director ............................................ Attorney-in-fact Mrs. Suchada Ithijarukul Director ............................................ 3