ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997 Consolidated Company's Separate Statements of Cash Flows (Baht) Statements of Cash Flows (Baht) 1998 1997 1998 1997 CASH FLOWS FROM OPERATING ACTIVITIES Net income 2,965,772,067 2,525,871,347 2,965,772,067 2,525,871,347 Reconcile to net cash from operating activities Depreciation and amortization of property and equipment 482,271,428 279,239,394 418,729,060 236,282,966 Amortization of costs of mobile phone and pager service networks under concession agreements 1,615,325,210 1,020,435,413 1,497,369,171 912,581,994 Amortization of deferred charges 69,376,971 33,401,329 69,328,273 33,351,646 Amortization of goodwill 36,598,815 36,598,814 - - Addition to bad debt and allowance for doubtful accounts 766,937,219 341,648,612 710,946,544 271,092,216 Unrealized (gains) losses on exchange (1,631,715,303) 1,321,771,670 (1,631,867,852) 1,316,457,294 Additions to allowance for obsolete inventories 5,034,038 25,800,565 - - Additions to allowance for obsolete equipment - 7,192,000 - - Net result of investment in subsidiary and associated companies (6,203,008) (1,293,079) (133,130,570) (89,126,824) Net income of minority interests in the subsidiary 109,017,649 82,955,089 - - Increase in accounts and notes receivable (52,819,322) (1,294,572,996) (28,617,724) (1,247,929,036) Decrease in advances to related parties 72,392,417 113,066,719 36,567,036 22,736,836 Decrease (increase) in inventories 15,075,298 (91,801,050) - - Decrease (increase) in other current assets 28,091,781 (456,812,896) 25,030,934 (506,222,153) Decrease (increase) in other assets 31,430,761 (83,556,002) 30,334,607 (84,929,314) Increase in accounts and notes payable and accrued expenses 642,595,816 2,496,262,015 580,202,260 2,539,863,403 Increase (decrease) in advances from related parties (57,482,621) 19,277,231 4,985,873 7,942,237 Increase (decrease) in other current liabilities 1,160,045,400 (307,867,396) 1,097,701,259 (329,513,323) Increase in deposits from customers 94,260,319 430,577,604 129,306,562 480,147,000 Gain on sales of equipment (1,434,815) (946,999) (58,608) (510,420) Net Cash Provided by Operating Activities 6,344,570,120 6,497,247,384 5,772,598,892 6,088,095,869 See notes to financial statements ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997 Consolidated Company's Separate Statements of Cash Flows (Baht) Statements of Cash Flows (Baht) 1998 1997 1998 1997 CASH FLOWS FROM INVESTING ACTIVITIES Net decrease (increase) in short-term investments 1,496,752,173 (2,765,040,755) 1,402,496,973 (2,696,509,565) Net decrease (increase) in loans to related parties (45,500,000) 121,000,000 (50,000,000) - Additions to investments in shares of subsidiary and associated companies (651,508,848) - (651,508,848) - Additions to investments in property and equipment (713,258,433) (1,254,724,644) (693,174,020) (1,148,828,857) Proceeds from sales of equipment 5,871,105 4,856,463 1,906,008 3,991,968 Additions to investments in mobile phone and pager service networks under concession agreements (7,614,438,557) (9,224,723,390) (7,580,148,236) (9,084,305,800) Dividend received from a subsidiary - - - 105,000,000 Payment of dividend to minority interests in a subsidiary - (70,000,000) - - Additions to investments in deferred charges (225,364,580) (163,459,476) (225,364,580) (165,271,806) Net Cash Used for Investing Activities (7,747,447,140) (13,352,091,802) (7,795,792,703) (12,985,924,060) CASH FLOWS FROM FINANCING ACTIVITIES Net increase (decrease) in loans from banks 691,890,300 (51,320,000) 691,890,300 (51,320,000) Net increase(decrease) in short-term bonds (130,000,000) 2,130,000,000 (130,000,000) 2,130,000,000 Increase in long-term bonds 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000 Net increase in long-term liabilities 1,313,816,370 5,181,857,748 1,976,816,370 5,183,417,747 Payments of dividend and interim dividend (257,400,000) (1,404,000,000) (257,400,000) (1,404,000,000) Net Cash From Financing Activities 2,618,306,670 6,856,537,748 3,281,306,670 6,858,097,747 INCREASE (DECREASE) IN CASH 1,215,429,650 1,693,330 1,258,112,859 (39,730,444) CASH AT BEGINNING OF YEAR 520,092,870 518,399,540 432,802,197 472,532,641 CASH OF SUBSIDIARY WHICH ITS RELATED SHARE CAPITAL WAS ACQUIRED ON DECEMBER 22, 1998 327,322,225 - - - CASH AT END OF YEAR 2,062,844,745 520,092,870 1,690,915,056 432,802,197 See notes to financial statements SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Definition of Cash Cash shown in the accompanying statements of cash flows represents cash in hand and at banks as defined in the Thai Accounting Standard with respect to the preparation of the statement of cash flows which is in line with the definition prescribed in the regulation relating to the financial statements issued under the Ministerial Regulation No. 7 (B.E. 2539), under the Public Company Limited Act B.E. 2535. Interest Expense and Income Tax Consolidated Company's Separate Paid During the Years Statements of Cash Flows (Baht) Statements of Cash Flows (Baht) 1998 1997 1998 1997 Interest expense 1,249,300,530 355,367,859 1,173,574,813 291,889,079 Income tax 394,533,205 1,722,998,762 326,295,389 1,618,313,774 Non-Cash Investing Activities in 1998 and 1997 in Consolidated Statements of Cash Flows Additions to investments in property and equipment for general business operations, which are included in property and equipment, additions to investments in mobile phone and pager service networks which are included in costs of mobile phone and pager service networks under concession agreements and additions to investments in deferred charges, amounted to approximately Baht 8,553.06 million in 1998 and Baht 10,642.91 million in 1997. Outstanding debts in the balance sheets relating to the aforesaid investments, amounting to approximately Baht 6,050.28 million in 1998 and Baht 4,861.75 million in 1997 are included in accounts and notes payable, and amounting to approximately Baht 14.95 million in 1998 and Baht 68.91 million in 1997 are included in advances from related parties, and amounting to approximately Baht 18.63 million in 1998 and Baht 72.16 million in 1997 are included in other current liabilities. Non-Cash Investing Activities in 1998 and 1997 in the Company's Separate Statements of Cash Flows Additions to investments in property and equipment for general business operations, which are included in property and equipment, additions to investments in mobile phone networks which are included in costs of mobile phone networks under concession agreements, and additions to investments in deferred charges, amounted to approximately Baht 8,498.69 million in 1998 and Baht 10,398.41 million in 1997. Outstanding debts in the balance sheets relating to the aforesaid investments, amounting to approximately Baht 6,049.68 million in 1998 and Baht 4,859.12 million in 1997 are included in accounts and notes payable, and amounting to approximately Baht 14.95 million in 1998 and Baht 0.39 million in 1997 are included in advances from related parties, and amounting to approximately Baht 17.96 million in 1998 and Baht 70.73 million in 1997 are included in other current liabilities. See notes to financial statements During the year ended December 31, 1998, the Company acquired certain subsidiary, 99.99% of Shinawatra Wireless Marketing Company Limited. Book values of assets acquired and liabilities assumed during the year then ended were as follows: Baht Cash in hand and at banks 327,322,225 Short-term investments 515,936 Accounts and notes receivable - net 234,392,248 Advances to related parties 1,795,927 Inventories - net 637,535,747 Other current assets 93,228,507 Equipment - net 87,244,502 Deferred charges - net 59,052,055 Other assets 311,522,034 Loans from banks (187,558,647) Accounts payable and accrued expenses (638,773,793) Short-term loan and advances from related parties (213,743,707) Other current liabilities (90,545,001) Minority interests in subsidiary (155) Excess of book value of investment in subsidiary over cost (21,987,878) Total 600,000,000 See notes to financial statements