NOTE 26 - COMMITMENTS Lease Agreements Other than those commitments under lease agreements as described in Note 3 to the financial statements, the Company and its subsidiary have entered into lease agreements covering spaces for branch offices, base stations and others for periods ranging from 3 months to 20 years with options to renew. The Company and its subsidiary are committed to pay monthly rentals in respect of the said agreements as follows: Million Baht Per Month Advanced Info Service Public Company Limited 12.74 Advanced Info Service Public Company Limited and subsidiary 15.93 Letters of Guarantee At December 31, 1997, the Company and its subsidiary had commitments with banks whereby the latter issued letters for guaranteeing the Company and its subsidiary in respect of business contracts, electricity use, customs duties and others in the following amounts: Million Baht For Advanced Info Service Public Company Limited 3,530.90 For Advanced Info Service Public Company Limited and subsidiary 3,702.24 Contracts for Construction and Equipment Installation of Mobile Phone Network At December 31, 1997, the Company had outstanding commitments under contracts relating to the construction and installation of equipment for the operations of mobile phone network amounting to approximately Baht 3,070.90 million. Data Broadcast Via Satellite Agreement The Company's subsidiary has entered into a Data Broadcast via Satellite agreement with the Telephone Organization of Thailand for a period of 5 years with option to renew. The subsidiary is committed to pay rentals in respect of the said agreement in the amount of Baht 35,000 per site per month for master network and Baht 6,000 per site per month for remote network. Interest Rate and Currency Exchange Agreements In order to hedge against the risk of possible losses from future repayments of loans and the related interest, deriving from exchange rates and interest rates under loans in foreign currencies, the Company and its subsidiary have entered into nine interest rate and currency exchange agreements to exchange the total loan principal from US$ 120,106,558.58 to Baht 2,779,205,269.32, and to exchange the related loan interest rates on US Dollars principals (comprise a fixed rate of 5.90 - 6.88% per annum, 6 month LIBOR and 6 month SIBOR plus the rate per annum as prescribed in each agreement) to the fixed rates on baht principals ranging from 9.35 - 10.935% per annum. The periods of those nine agreements are covering from March 5, 1996 to January 15, 2001. As of December 31, 1997, outstanding loan principals under those agreements amounted to US$ 108,393,482.62. Forward Exchange Contracts In order to hedge against the risk of possible losses from future repayments of loans, interest and foreign payables, deriving from exchange rates under loans, interest and accounts payable in foreign currencies, the Company and its subsidiary have entered into four currency exchange agreements to exchange the total loan principal, interest and accounts payable from US$ 7,083,523.94 to Baht 332,064,995.80. The periods of these four agreements are covering from December 18, 1997 to April 9, 1998. As of December 31, 1997, outstanding loan principal, accrued interest expense and accounts payable under those agreements amounted to US$ 7,054,452.07. The Company has also entered into three sale forward contracts on October 22, 1997 to sell US$ 2,000,000 from October 27, 1997 to January 16, 1998 for the total contracted amount of Baht 79,000,000. Interest Rate Exchange Agreement In order to hedge against the risk of possible losses from interest payments, deriving from interest rates under foreign loans, the Company and its subsidiary have entered into two interest rate exchange agreements, to exchange the related loan interest rates on US Dollars principals of US$ 28,000,000 (comprise 6 month LIBOR and 6 month SIBOR plus the rate per annum as prescribed in each agreement) to the fixed rates on US Dollars principals ranging from 5.90 - 6.34% per annum. The periods of those two agreements are covering from March 15, 1996 to April 9, 2000. Equipment Purchase Agreement The Company's subsidiary, Shinawatra Paging Company Limited, has entered into an agreement with Thaimark Solutions Technology Company Limited in order to buy the said company's equipment for a total value of approximately Baht 2.49 million. NOTE 27 - OTHER INFORMATION On May 16, 1997, the Company's subsidiary, Shinawatra Paging Company Limited, has entered into an agreement with Pager Sales Company Limited in order to buy the said Company's assets for a total value of approximately Baht 154.86 million, comprise inventories at the total value of approximately Baht 98.63 million, accounts receivable at the total value of approximately Baht 37.15 million, and property and equipment at the total value of approximately Baht 19.08 million. On October 2, 1997, the Company's subsidiary, Shinawatra Paging Company Limited, entered into additional agreement with Pager Sales Company Limited in order to buy additional equipment from the said Company at the total value of approximately Baht 62.29 million. NOTE 28 - RECLASSIFICATION OF ACCOUNTS Certain accounts in the 1996 financial statements have been reclassified to conform with the 1997 presentation.