Submission of F/S and Explanation for Profit Change

Translation 9 August 2007 Subject : Submission of Financial Statements for the quarter 2/2007 To : Director and Manager Stock Exchange of Thailand Enclosed please find the Interim Consolidated and Company Financial Statements of Siam Makro Public Company Limited for the second quarter ended June 30, 2007 which have been reviewed by the certified public accountant. Revenues For the second quarter of 2007, the Company achieved Baht 15,172 million consolidated revenues, 8.9% increased from the same period last year. The growth was mainly contributed by high sales growth of food products and sales from new Makro stores, i.e. store 30 (Sa Kaeo) opened on 24 January 2007 and store 31 (Ko Samui) opened on 25 April 2007. Selling and Administrative Expenses Consolidated selling and administrative expenses increased from the same quarter last year by 10.7%. The increase was mainly due to operating cost for 2 new Makro stores. Net Profit Net profit was recorded at Baht 282 million, 18% over the same period last year. The increase was attributable to sales growth and opening of new stores as above mentioned. Contingencies The 5-year warranty in respect of selling all investments of subsidiary company, Makro Auto Care Co.,Ltd., made in 2002 was expired in this quarter and no claim against warranty was made during the warranty period. Change in Accounting for Investments Since 1 January 2007, the Company has changed its accounting policy for investments in subsidiaries in the Company financial statements from the equity method to the cost method in compliance with the Federation of Accounting Professions announcement. The Company applies retrospective adjustments. Thus the Company restated its financial statements by using the historical cost as the cost of the investments in subsidiaries of the Company financial statements. This adjustment caused the net income on the Company financial statements to differ from that reported in the consolidated financial statements. The Company had net income of Baht 598 million for the six-month period ended June 30, 2007, according to the consolidated financial statements. However, the Company financial statements over the same period showed a net income of Baht 508 million. Therefore, the Company would like to clarify with the additional information as follows: 1. After a change in accounting for investments, net income for the six-month period ended June 30, 2007 and the comparable period in 2006 decreased by Baht 90 million and Baht 101 million, respectively. (that is, decreased by Baht 0.38 per share and Baht 0.42 per share, respectively.) This is because the Company financial statements did not include any share of profits from investments. 2. The effect from the restating to other items on the Company financial statements for the year ended December 31, 2006, such as investments in subsidiaries and the retained earnings on the balance sheets, decreased by Baht 1,806 million. The cumulative effect of the accounting policy has been presented under the subject of "Cumulative effect of the change in accounting policy for investments in subsidiaries in the Company financial statements" in the Statements of Changes in Shareholders Equity. However, the change of accounting policy affected only the Company financial statements. It did not have any effect on the consolidated financial statements or business fundamentals. Please be informed accordingly. Yours faithfully, Siam Makro Public Company Limited Signature (Mr. Charoen Assawajarukasem) SET Coordinator Manager