SUBMISSION OF F/S AND EXPLANATION FOR PROFIT CHANGE

Translation 4 November 1999 Subject : Submission of financial statement and explanation for profit change To : Director and Manager The Stock Exchange of Thailand Please find enclosed the consolidated financial statement of Siam Makro Public Company Limited and its subsidiary companies for the third quarter ended September 30, 1999 which has been reviewed by the company's auditor. The consolidated financial statement showed the net profit for the quarter of Baht 146.5 million, an increase of 37.5% from the same period last year. In the third quarter of 1999, the company reported total revenues of Baht 9,438 million, 23.8% up from the third quarter of 1998. The increase was largely attributable to an increase in sales of both food and non-food products and also the service income from all existing stores as well as the new store opened during 1999. This was the result of a successful 10th year anniversary's promotional campaign and the consumers' confidence in economic recovery. Interest income sharply dropped by 62% from the same period last year due to the lower interest rate. Selling and administrative expenses in the third quarter of this year was 7.4% of total revenues, declined when compared to 8.5% of last year. In this quarter, in accordance with the regulation of Stock Exchange of Thailand on Preparation and Submission of Financial Statements, Financial Reports and Operating Results of Listed Companies (No. 1), 1999 and the recent developments in International Accounting Standards and Thai Generally Accepted Accounting Principles, the company has changed its accounting policy from Capitalisation of certain intangible assets including Deferred Development Rights, Pre-opening and start-up expenses to expenses such costs as incurred. The company therefore has accounted for the change retrospectively to the results of the first and the second quarter of this year. As a result, there were an increase of the net profit for the previously reported six-month period ended June 30, 1999 of Baht 21.5 million and the decrease in retained earnings previously reported in the Balance Sheet as at June 30, 1999 of Baht 168.2 million. The company also has adjusted the other related accounts and the comparative figures of 1998 to be in line with the change. Please be informed accordingly. Yours faithfully, Siam Makro Public Company Limited