SUBMISSION OF 1999 FINANCIAL STATEMENTS

Translation 17 February 2000 Subject : Submission of 1999 Financial Statements To : Director and Manager The Stock Exchange of Thailand Please find enclosed the consolidated financial statements of Siam Makro Public Company Limited and its subsidiary companies for the year ended December 31, 1999 which has been audited by the Company's auditor. The Company's net profit for 1999 was 735.9 million baht which was the profit before deducting a provision for impairment of a plot of land held by a subsidiary and represented a 34.6% increase over the restated profit in 1998. This was attributed to the increase in same stores sales, new store opening, higher service and other income while interest income was substantially lower as a result of continue declining in interest rate. Moreover, the Company has successfully managed and controlled the selling and administrative expenses down to 7.7% of total revenue when compared to 8.1% in 1998. The start of the overall economic recovery during the year, the reduction in VAT from 10% to 7%, the successful 10th anniversary promotion program and continuous expansion resulted in 12.1% increase in 1999 consolidated sales over the year before. In the second quarter of 1999, a subsidiary has recognised a provision for impairment of a plot of land held for sale or future development amounted to 164.9 million baht. The loss was fully recorded in the profit and loss statement without tax benefit. In the third quarter, the Company has changed its accounting policy from capitalisation of deferred development rights and pre-opening and start up cost to expense such cost as incurred. After the above adjustments the Company's net profit was 571.1 million baht, 24 million baht higher than 1998. Please be informed accordingly. Yours faithfully, Signature Suchada Ithijarukul Director