REPORTS CORRECTION OF CONCESSION CONTRACT

24 September 1996
Due to Advanced Info Service Plc (ADVANC) has negotiated about concession contract with Telephone Authority of Thailand (TAT) and has already reached the agreement. Both have signed in the contract in September 20, 1996 and the company would like to report important information concerning the contract as follows: 1. The company has been granted to operate NMT 900 and GSM Cellular Mobile Telephone system across the country from 20 years to 25 years since the first operating day. 2. The company can invest in the construction of network system necessary but to inform TAT first, and 2.1 The company is to use the linked signal system or anything made by the company without any expenses. TAT, however, can benefit from the network or any assets by allowing the company to manage profits for TAT. The service fee and other compensations will be negotiated periodically. 2.2 TAT has to pay any damage or loss revenue to the company if TAT has done anything which eliminated the right to manage profits from the linked signal system of the company. 2.3 TAT has no right to sell, transfer, rent, or mortgage and will not allow anyone to ruin the system or increase the burden of system maintenance. 3. In the case TAT granted private firms to operate Mobile Cellular system, the proportion of compensations will not be different in which to take advantage of the company. 4. If TAT can not provide the linked signal system to the company, the company will lease the system from other sector but will come back if TAT is ready. 5. The company will: 5.1 pay low compensation for the 21-25th year of Bt1,460,060,000 per year or 30% of revenues. 5.2 The compensation will be calculated from service revenue not including VAT and to be effective when sign in the contract. 6. In the case there is a change in technology which causes the company's network to work inefficiently, the company has right to modify or adjust the network to match a new technology using the company's expenses. And if the company is willing to have additional service of mobile phone, it will negotiate with TAT later. 7. TAT allows the company to link Mobile Cellular network to the International telephone lines system of Communication Authority of Thailand (CAT). Translated by the Nation