THE PREPARATION FOR Y2K COMPLIANCE REPORT NO.2

Translation The Preparation for Year 2000 Compliance - Report No. 2 Siam Makro Public Company Limited Siam Makro Public Company Limited, the operator of cash and carry business selling food and non-food products and having its Head Office located at 3498 2nd Floor, Lardprao Road, Klongchan, Bangkapi, Bangkok 10240, Tel. 375-7000 Fax 375-2789, would like to report the actions taken and current status on the preparation for year 2000 compliance as at 30 September 1998. The Preparation for Year 2000 Compliance 1.Actions Taken To prepare for the year 2000 compliance, the company and its subsidiaries have commenced the implementation plan to replace and upgrade all major computer systems as following:- Company Computer System Current Status Siam Makro Public Co., Ltd. 1. Financial & Accounting System Completed the system upgrading. Pending for year 2000 compliance test. 2. MBS Application System In the process of upgrading system for store operations (step3). Expecting to complete in Q1'99. 3. Other Systems In the process of analysing the impacts and solving the problems. Makro Office Centre Co., Ltd. 1. Financial & Accounting System Same status as Siam Makro Pcl. (using the same system). 2. MBS Application System In the process of system analysis and waiting for recommendation from consultants. The system might be upgraded to be more applicable for the business operation. 3. Other Systems In the process of analysing the impacts and solving the problems. Makro Auto Care Co., Ltd. 1. Financial & Accounting System Same status as Siam Makro Pcl. (using the same system). 2. MBS Application System In the process of reviewing and working with the software house for the new system which might be implemented to be more applicable for the business operation. 3. Other Systems In the process of analysing the impacts and solving the problems. The system development and the preparation for year 2000 compliance are on schedule. Makro Office Centre Co., Ltd. plan to upgrade its MBS application system and Makro Auto Care Co.,Ltd. may change its application system to be more applicable to their business operations. However, this is being reviewed by management and the consultants. The resolution will be concluded within the 4th quarter of 1998. The total development cost of the new computer system as at 30 September 1998 was 29 million baht which has been capitalised to fixed assets. According to the company and its subsidiaries' investment plans, the computer system development has been implemented to significantly increase efficiency and capability to the business operations. 2.Management Comments The preparation for the year 2000 compliance including the system developments are going well as planned. The application systems of the subsidiaries may be upgraded or changed as already mentioned and the decision is expected to be finalised in the fourth quarter of 1998. However, up to present the company and its subsidiaries+ operations do not find any problems that may cause any business disruption. The Management believe that the preparation for the year 2000 compliance will be completed and ready before the year 2000. Acknowledgement We have reviewed this document and agree that all details and information disclosed here are correct, complete, truthful and does not contain any misleading information which may cause any damage or loss to the shareholders. To authenticate that this is the document we have reviewed, we have authorised Mrs. Suchada Ithijarukul to sign on every pages of the document. Name Position Signature Mr. Dhanin Chearavanont Chairman ............................................ Mr. Arnold Maria Leo Tobac Vice Chairman ............................................ Mr. Jacob Cornelio Adriano de Jonge Director ............................................ Mr. Prasert Jarupanich Director ............................................ Mrs. Suchada Ithijarukul Director ............................................ Attorney-in-fact Mrs. Suchada Ithijarukul Director ............................................ SETY2KE2.DOC