EXPLANATION FOR PROFIT CHANGE

Translation 21 February 2003 Subject : Submission of Financial Statements for the year of 2002 To : Director and Manager Stock Exchange of Thailand Enclosed please find the consolidated and company Financial Statements of Siam Makro Public Company Limited for the year ended December 31, 2002 which have been audited by the Company's Certified Public Accountant. In 2002 the Company has earned net profit after tax of Baht 942 million which included a net gain of Baht 104 million on the sales of subsidiary company. The consolidated profit after tax decreased 4% from last year net profit of Baht 985 million due mainly to following reasons: 1. Consolidated sales decreased 2.6% from last year as there were no sales of Makro Auto Care Co., Ltd. as a result of the disposal of the entire interest in Makro Auto Care Co., Ltd. in second quarter of 2002. Excluding Makro Auto Care Co,.Ltd.'s sales for the years of 2002 and 2001, the adjusted consolidated sales of the Company and its subsidiaries would be reduced only by 0.6% from last year . 2. Change in sales mix for more lower margin food sales coupled with the impact from competition caused the declining in lower gross margin. 3 Total selling and administrative expenses has been continuously reduced by 11.4% from last year although the Company and its subsidiaries have increased number of stores during the year. This was due to tightening control over the Company's expenses. Please be informed accordingly. Yours faithfully, Siam Makro Public Company Limited Signature (Charoen Assawajarukasem) SET Coordinator Manager