CLARIFIES ITS 1996 FINANCIAL STATEMENT

Siam Makro Plc (MAKRO) reported its audited annual financial statement as follows: (in thousands) For 1 year Ending December 31 1996 1995 MAKRO Net profit 763,469 619,364 EPS(Baht) 3.42 2.81 The company clarified causes of change in profit by over 20% year on year as follows: 1) The company has been expanding branches continuously since late 1995 by opening 5 more branches such as Udon Thani, Pitsanuloke, Khon Khan, Surat Thani, and Ubon Ratchathani respectively. This caused revenues to rise 26.6% compared to the same period of 1995. 2) Other revenues rose from 1995 by 22.6% due to the branch expansion. The company would like to correct information in financial note of its financial statement of 1996. The company reported that as financial note for financial statement ending December 31, 1996 as informed to the SET in March 3, 1997 had mistakes in some messages and need to be corrected. The company therefore would like to correct financial note as follows: 1.) Correct financial note as of December 31, 1996, page 9, no.10 under the topic long-term loan. old message "secured long-term loan by mortgaging loan of Bt48 million" new message "secured long-term loan by mortgaging part of land now a location of Srinakarintr branch" 2. Add financial note as of December 31, 1996 of MAKRO and subsidiaries, page 9, no.11 under the topic long-term loan old message "long-term loan in Baht currency, interest rate 12% per year, loan dued in quarter at Bt16,667,000 per quarter with last installment in 1997" new message "long-term loan in Baht currency, interest rate 12% per year dued in quarter at Bt16,667,700 each quarter with last installment end in 1997. The long-term loan secured by mortgaging part of land currently a location of Srinakarintr branch.