Submission of F/S and Explanation for Profit Change

Translation 14 August 2003 Subject : Submission of Financial Statements for the quarter 2/2003 To : Director and Manager Stock Exchange of Thailand Enclosed please find the consolidated Financial Statements of Siam Makro Public Company Limited for the second quarter ended June 30, 2003 which have been reviewed by the Company's auditor. For the second quarter of 2003, the Consolidated sales were Baht 9,743.4 million, representing an increase of 5.5% over the same period last year. Makro Business grew 8% and there were no sales from Makro Auto Care Co., Ltd. as it has been disposed since May last year. Sales growth was attributed to higher food sales resulted from promotional program and continued development of core customers namely small retailers, caterers and professionals. The percentage of gross margin in second quarter decreased 1.9% from the same quarter last year resulted from change in sales mix and competition in food area. Total selling and administrative expenses reduced by 7.8% as compared to the same quarter last year due to continuous effort in maintaining a low cost operation though we have started to accrue liability on retirement benefit and additional contribution of provident fund for Baht 7 million in this quarter. Net profit after tax was Baht 162.6 million, 53.6% lower than same quarter last year due to the following reasons: 1. Non recurring net profit after tax of Baht 105 million from disposal of the Company's entire interest in Makro Auto Care Co., Ltd. 2. Lower gross margin as mentioned above. Please be informed accordingly. Yours faithfully, Siam Makro Public Company Limited Signature (Charoen Assawajarukasem) SET Coordinator Manager