Submission of F/S and Explanation for Profit Change

Translation 27 February 2008 Subject : Submission of Financial Statements for the year ended December 31, 2007 To : Director and Manager The 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, 2007 which have been audited by the certified public accountant. Revenues During the year of 2007, the Company has been performing several activities to improve the service quality rendered to our member customers including effective management and provided value added service to our member customers such as remodeling bakery section, spice section, installation of air-condition including review of assortment and re-display the product in small stores. The Company also improved the non food products to explicitly access to the target customer group. In addition, the Company has opened 12 new stores to serve the demand of our customers and to provide convenience to our customers in various provinces. Furthermore, we have provided training to our staffs to improve service efficiency to our customers. The improvement of our logistics was for the purpose of enhancing an efficiency in inventory management to be better. In the early of 2007, we have launched Makro Retailers Alliance (MRA) Project in order to continuously develop our member customers to improve their competitiveness. MRA Project Phase I composes of the model store design contest, the certified training program for retail business operation owners and their successors and the development to the retail business operator through an educational column on retailers in Kom Chad Luek newspaper. The foregoing activities were attributable to the sales increase of all product groups, i.e. fresh food, dry food and non food product by 11.8% growth as compared to last year and resulted to total consolidated revenues of Baht 63,934 million or 11.4% growth as compared to last year. Selling and Administrative Expenses Overall the selling and administrative expenses increased by Baht 694 million to Baht 4,180 million up from Baht 3,486 million, representing 6.5% of total revenue compared to 6.1% in 2006. This being accounted to the operating cost and pre opening expenses for 12 new stores which was Baht 463 million. However, the increase in selling and administration expenses was held at a lower rate as selling and administrative expenses per store were tightly controlled. Net Profit Net profit was Baht 1,292 million, up 5.6% from Baht 1,223 million in 2006. The increase of net profit was due mainly to the increased revenue and efficient management. 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 1,292 million for the year ended 31 December 2007, according to the consolidated financial statements. However, the Company financial statements for the year ended 31 December 2007 showed a net income of Baht 1,293 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 year ended 31 December 2007 and 2006 increased by Baht 1 million for the year 2007 and decreased by Baht 232 million for the year 2006, respectively. (that is, increased by Baht 0.01 per share for the year 2007 and decreased by Baht 0.97 per share for the year 2006, 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 31 December 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