SUBMISSION OF F/S AND EXPLANATION FOR PROFIT CHANGE

(Translation) 7 February 2001 Subject:Submission of Financial Statement for the Year Ended 31 December 2000 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 31 December 2000 which have been audited by the Company's auditor. In the year 2000, the company's consolidated financial statements showed the net profit after tax of Baht 1,027.5 million, an increase of 80% over the year 1999 in which the net profit of Baht 571 million has been reported. Main reasons for substantial increase in profit can be summarised as follows: 1. In the year 2000, the Company has opened 2 new stores which are the Narathiwasratchanakharin Branch in March and Nakhon Pathom Branch in October. This has resulted in an increase in total sales in addition to the budgeted increase in same stores sales. The consolidated sales revenue increased 9.6% from the year before. 2. An increase in gross margin was resulted from the change in sales mix of food and non-food whereas in 2000 the non-food business grew at a higher rate than food. An improvement in stock control has also resulted in lessor requirement of stock provision for lost and damaged stocks. 3. Other income increased 23% from the prior year in spite of a sharp drop in interest income which was in line with the reduction in interest rates. 4. Effective control over selling and administrative expenses at the level of 7.7% of total revenues which is in line with that of 1999. In the second quarter of 1999, a subsidiary has recognised a provision for impairment of a plot of land held for sale or further development amounted to Baht 164.9 million. The loss was fully recorded without tax benefit. When compared to profit before impairment loss as discussed above, the increase in net profit for the year 2000 was 40% over the year before. Please be informed accordingly. Yours sincerely, - signed - Suchada Ithijarukul Director