ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 1999 AND 1998 (UNAUDITED) (Amounts in thousand Baht) Consolidated Company's Separate Statements of Cash Flows Statements of Cash Flows 1999 1998 1999 1998 CASH FLOWS FROM OPERATING ACTIVITIES Net income 871,643 1,742,631 871,643 1,742,631 Reconcile to net cash from operating activities Depreciation and amortization of property and equipment 135,719 108,844 115,217 92,765 Amortization of costs of mobile phone and pager service networks under concession agreements 457,412 349,345 427,030 320,409 Amortization of deferred charges 15,829 20,380 14,215 20,368 Amortization of goodwill 14,803 9,150 - - Amortization of the excess of book value of investment in subsidiary over cost (1,099) - - - Addition to bad debt and allowance for doubtful accounts 199,385 168,748 173,821 146,961 Unrealized (gains) losses on exchange 63,419 (1,565,847) 61,456 (1,566,262) Additions to allowance for obsolete inventories 86,258 - - - Addition to allowance for loss on collection of other receivables 614 - - - Net result of investment in subsidiary and associated companies (3,586) (1,501) (199,273) (32,469) Net income of minority interests in the subsidiaries 19,805 26,745 - - Increase in accounts and notes receivable (347,244) (344,440) (156,715) (334,168) Decrease in advances to related parties 2,129 54,511 137,977 55,022 Decrease (increase) in inventories (150,146) 18,972 - - Decrease in other current assets 89,806 20,064 49,980 15,703 Increase in other assets (36,392) (9,310) (38,460) (10,221) Increase (decrease) in accounts and notes payable and accrued expenses (32,196) 1,356,943 (251,194) 1,377,852 Increase (decrease) in advances from related parties (9,699) (775) 2,525 (8,121) Increase (decrease) in other current liabilities (166,040) 820,495 (283,388) 778,350 Increase (decrease) in deposits from customers 45,120 (49,948) 88,452 (46,299) Gain on sales of equipment (802) (298) (209) (9) Net Cash Provided by Operating Activities 1,254,738 2,724,709 1,013,077 2,552,512 See notes to financial statements (To be continued in page 9) ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 1999 AND 1998 (UNAUDITED) (Amounts in thousand Baht) Consolidated Company's Separate Statements of Cash Flows Statements of Cash Flows 1999 1998 1999 1998 (Continued from page 8) CASH FLOWS FROM INVESTING ACTIVITIES Net increase in short-term investments (3,422,148) (1,132,970) (3,447,037) (932,779) Addition to investment in a subsidiary (949,600) - (949,600) - Additions to investments in property and equipment (117,801) (246,134) (94,067) (241,188) Proceeds from sales of equipment 10,470 1,022 9,201 332 Additions to investments in mobile phone and pager service networks under concession agreements (441,308) (1,971,648) (426,375) (1,966,417) Additions to investments in deferred charges (24,622) (152,103) (24,622) (152,103) Net Cash Used for Investing Activities (4,945,009) (3,501,833) (4,932,500) (3,292,155) CASH FLOWS FROM FINANCING ACTIVITIES Net decrease in loans from banks (620,777) - (507,300) - Net decrease in short-term bonds - (2,110,000) - (2,110,000) Net increase (decrease) in long-term bonds (500,000) 1,000,000 (500,000) 1,000,000 Net increase (decrease) in long-term liabilities (3,866,191) 1,780,505 (3,866,191) 1,780,505 Proceeds from increase in share capital 8,280,000 - 8,280,000 - Net Cash From Financing Activities 3,293,032 670,505 3,406,509 670,505 NET DECREASE IN CASH (397,239) (106,619) (512,914) (69,138) CASH AT BEGINNING OF PERIOD 2,062,845 520,093 1,690,915 432,802 CASH AT END OF PERIOD 1,665,606 413,474 1,178,001 363,664 See notes to financial statements (To be continued in page 10) (Continued from page 9) 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 Paid During the Three-month periods Ended March 31, 1999 and 1998 Consolidated Company's Separate Statements of Cash Flows Statements of Cash Flows (Amounts in thousand Baht) 1999 1998 1999 1998 Interest expense 338,541 441,726 334,584 372,921 Income tax 912,314 10,664 824,058 8,469 Non-Cash Investing Activities for the Three-Month Periods Ended March 31, 1999 and 1998 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 583.73 million for the three-month period ended March 31, 1999 and Baht 2,369.89 million for the three-month period ended March 31, 1998. As at March 31, 1999 and 1998 outstanding debts in the consolidated balance sheets relating to the aforesaid investments, amounting to approximately Baht 396.20 million and Baht 1,936.88 million, respectively, are included in accounts and notes payable; amounting to approximately Baht 1.30 million and Baht 0.10 million, respectively, are included in advances from related parties; and amounting to approximately Baht 43.96 million and Baht 227.70 million,respectively, are included in other current liabilities. Non-Cash Investing Activities for the Three-Month Periods Ended March 31, 1999 and 1998 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 545.06 million for the three-month period ended March 31, 1999 and Baht 2,359.71 million for the three-month period ended March 31, 1998. As at March 31,1999 and 1998, outstanding debts in the balance sheets relating to the aforesaid investments, amounting to approximately Baht 394.78 million and Baht 1,935.44 million, respectively, are included in accounts and notes payable; and amounting to approximately Baht 1.30 million and Baht 0.10 million, respectively, are included in advances from related parties; and amounting to approximately Baht 42.87 million and Baht 226.71 million, respectively, are included in other current liabilities. See notes to financial statements