SUBMISSION OF F/S AND EXPLANATION FOR PROFIT CHANGE

(Translation) 7 August 2000 Subject : Submission of Financial Statement for the 2nd Quarter of 2000 To : Director and Manager The Stock Exchange of Thailand Please find enclosed the financial statements of Siam Makro Public Company Limited for the second quarter ended 30 June 2000. Net profit for the period was reported at Baht 251.5 million, more than 600% up from the same period last year which was Baht 33.8 million. The main reasons for substantial increase in profit are as follows: 1. Sales increase of 10.5% came partly from the higher sales of existing stores and partly from the new Bangkok stores opened in the first quarter end of this year. The non-food sales continuously and satisfactorily grew from the second quarter last year. 2. Service and other income after netting off the reduction in interest income increased 16% over the same period last year. 3. In the second quarter of 1999, a subsidiary had recognised a provision for impairment of property of Baht 164.9 million resulting in the reduction in net income for the quarter to Baht 33.8 million. Please be informed accordingly. Yours faithfully, - signed - Suchada Ithijarukul Director and Finance Director