Submission of F/S and Explanation for Profit Change

Translation 8 November 2007 Subject : Submission of Financial Statements for the quarter 3/2007 To : Director and Manager Stock Exchange of Thailand Enclosed please find the Interim Consolidated and Company Financial Statements of Siam Makro Public Company Limited for the third quarter ended September 30, 2007 which have been reviewed by the certified public accountant. Revenues For the third quarter of 2007, the Company achieved Baht 15,043 million consolidated revenues, 8.5% increased from the same period last year. The growth was mainly contributed by high sales growth of food and non-food products and sales from 3 new Makro stores operated during nine months of this year, i.e. store 30 (Sa Kaeo), store 31 (Ko Samui) and store 32 (Buriram). Selling and Administrative Expenses Consolidated selling and administrative expenses increased from the same quarter last year by 13.7% due mainly to operating cost for 3 new Makro stores as mentioned above and pre-opening expenses for other new stores under construction. Net Profit Net profit was recorded at Baht 301 million, 12.5% decreased from the same period last year. The decrease was explained by the higher corporate tax than last year due to non recurring realization of taxable loss of selling impaired asset in the same quarter last year. With comparison on the same basis, net profit was 3% higher than that of last year. Change in Accounting for Investments Since 1 January 2007, the Company has changed its accounting policy for investments in subsidiaries in the Company financial statements from the equity method to the cost method in compliance with the Federation of Accounting Professions announcement. The Company applies retrospective adjustments. Thus the Company restated its financial statements by using the historical cost as the cost of the investments in subsidiaries of the Company financial statements. This adjustment caused the net income on the Company financial statements to differ from that reported in the consolidated financial statements. The Company had net income of Baht 899 million for the nine-month period ended September 30, 2007, according to the consolidated financial statements. However, the Company financial statements over the same period showed a net income of Baht 838 million. Therefore, the Company would like to clarify with the additional information as follows: 1. After a change in accounting for investments, net income for the nine-month period ended September 30, 2007 and the comparable period in 2006 decreased by Baht 61 million and Baht 192 million, respectively. (that is, decreased by Baht 0.25 per share and Baht 0.80 per share, respectively.) This is because the Company financial statements did not include any share of profits from investments. 2. The effect from the restating to other items on the Company financial statements for the year ended December 31, 2006, such as investments in subsidiaries and the retained earnings on the balance sheets, decreased by Baht 1,806 million. The cumulative effect of the accounting policy has been presented under the subject of "Cumulative effect of the change in accounting policy for investments in subsidiaries in the Company financial statements" in the Statements of Changes in Shareholders Equity. However, the change of accounting policy affected only the Company financial statements. It did not have any effect on the consolidated financial statements or business fundamentals. Please be informed accordingly. Yours faithfully, Siam Makro Public Company Limited Signature (Mr. Charoen Assawajarukasem) SET Coordinator Manager