Submission of F/S and Explanation for Profit Change

Translation 19 February 2009 Subject : Submission of Financial Statements for the year ended December 31, 2008 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, 2008 which have been audited by the certified public accountant. Revenues During the year of 2008, the Company has been continuously performing several activities which was initiated in the year of 2007 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. Furthermore, we have provided training to our staffs to improve service efficiency to our customers. The improvement of our logistics for Fresh and Frozen products was for the purpose of enhancing an efficiency in Fresh and Frozen products management. We also highlight in quality checking of those fresh food products. We have been developing our member customers to improve their competitiveness through our project namely "Makro Retailers Alliance (MRA) Project" which was launched in the early of 2007. We have provided the training seminars for small retail business operation owners and their successors throughout the country and also provide consultation to them to improve their efficiency to compete in the market with sustainable growth. The foregoing activities together with the additional sales from 12 new stores opened during 2007 were attributable to the high sales increase during the first three quarters. The negative impact from economy since September last year caused lower sales in the 4th quarter than we expected. However, our consolidated sales in 2008 increased by almost 16.2% as compared to last year and resulted to total consolidated revenues of Baht 74,310 million or 16.2% growth over last year. Selling and Administrative Expenses Overall selling and administrative expenses increased by Baht 367 million or 8.8% to Baht 4,547 million in 2008, up from Baht 4,180 million in 2007. This represented 6.1% of total revenue compared to 6.5% in 2007. The increase was mainly due to the full year operating expense of 12 new stores as compared to only pre-opening expense and partial expense of these new stores in 2007. The increase in selling and administrative expenses was less than the increase in sales as new stores continue to increase their sales contribution as well as tight expense control company wide. We will continue to explore productivity and efficiency improvement to optimise expenditure. Net Profit Consolidated income before interest expenses and taxation was Baht 2,477 million, up Baht 639 million from Baht 1,838 million in 2007 representing an increase of almost 34.8%. This income includes 2 extraordinary items which were one time gain from the sales of Makro Office Centre Co., Ltd. and sales of excess land in Bangbon. Income after taxation was Baht 1,674 million, up some Baht 382 million or 29.6% from Baht 1,292 million in 2007. If exclude the extraordinary items (after tax) of Baht 187 million, the net income after taxation will be Baht 1,487 million which was 15.1% growth over last year. Change in Accounting Policy During the year, there have been several amendments to the Thai Accounting Standard. All but one standard had financial impact on our Statement of Income and it is the TAS 43, which is about "Business Combination" and it requires no amortisation of goodwill from business combination and review the impairment of goodwill annually. This standard has a positive impact as the goodwill amortisation of Baht 10 million is no longer required in 2008. Please be informed accordingly. Yours faithfully, Siam Makro Public Company Limited Signature (Mr. Charoen Assawajarukasem) SET Coordinator Manager