ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE THREE-MONTH PERIODS ENDED JUNE 30, 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 (loss) 1,219,829 (5,837) 1,219,829 (5,837) Reconcile to net cash from operating activities Depreciation and amortization of property and equipment 146,845 120,528 125,798 104,450 Amortization of costs of mobile phone and pager service networks under concession agreements 468,419 387,965 437,196 358,591 Amortization of deferred charges 52,001 22,306 50,119 22,294 Amortization of goodwill 26,109 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 113,210 206,098 94,752 185,507 Unrealized loss (gain) on exchange (10,841) 624,869 (10,841) 624,869 Additions to allowance for obsolete inventories 2,947 186 - - Addition to allowance for loss on collection of other receivables 3,246 - - - Net result of investment in subsidiary and associated companies (2,457) (2,090) (294,146) (24,088) Net income of minority interests in the subsidiaries - 20,765 - - Increase in accounts and notes receivable (368,254) (307,059) (337,907) (298,305) Decrease in advances to related parties 5,475 109,879 72,951 73,395 Increase in inventories (236,722) (8,486) - - Decrease (increase) in other current assets (114,012) 63,303 (145,552) 72,134 Decrease (increase) in other assets 51,972 (2,802) 52,998 (2,671) Decrease in accounts payable and accrued expenses (2,316,135) (27,722) (2,133,756) (73,925) Increase (decrease) in advances from related parties 10,160 (63,440) 19,754 1,757 Decrease in other current liabilities (289,533) (381,769) (260,419) (349,423) Increase in deposits from customers 117,964 131,188 140,552 135,507 Loss (gain) on sales of property and equipment (737) (424) 29 (155) Losses on disposal of assets 8,626 - 3,626 - Net Cash From Operating Activities (1,112,987) 896,608 (965,017) 824,100 See notes to financial statements (To be continued in page 10) ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE THREE-MONTH PERIODS ENDED JUNE 30, 1999 AND 1998 (UNAUDITED) (Amounts in thousand Baht) Consolidated Company's Separate Statements of Cash Flows Statements of Cash Flows (Continued from page 9) 1999 1998 1999 1998 CASH FLOWS FROM INVESTING ACTIVITIES Net decrease in short-term investments 3,377,988 1,350,631 3,427,988 1,439,776 Net decrease in short-term loans to related parties - 500 - - Additions to investments in property and equipment (129,032) (161,236) (114,543) (155,958) Proceeds from sales of property and equipment 9,162 1,639 8,059 502 Additions to investments in mobile phone and pager service networks under concession agreements (471,239) (2,561,747) (454,554) (2,559,299) Additions to investments in deferred charges (57,092) (46,978) (42,093) (46,978) Net Cash From Investing Activities 2,729,787 (1,417,191) 2,824,857 (1,321,957) CASH FLOWS FROM FINANCING ACTIVITIES Net decrease in loans from banks (262,845) - (186,800) - Net decrease in short-term bonds (110,100) - (110,100) - Net increase in long-term bonds - 1,000,000 - 1,000,000 Net increase (decrease) in long-term liabilities (522,300) 173,062 (522,300) 173,062 Payments of interim dividend - (257,400) - (257,400) Net Cash From Financing Activities (895,245) 915,662 (819,200) 915,662 NET INCREASE IN CASH 721,555 395,079 1,040,640 417,805 CASH AT BEGINNING OF PERIOD 1,665,606 413,474 1,178,001 363,664 CASH AT END OF PERIOD 2,387,161 808,553 2,218,641 781,469 (Please see supplemental disclosures of cash flow information in page 13) See notes to financial statements ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 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 2,091,472 1,736,794 2,091,472 1,736,794 Reconcile to net cash from operating activities Depreciation and amortization of property and equipment 282,565 229,372 241,015 197,215 Amortization of costs of mobile phone and pager service networks under concession agreements 925,831 737,311 864,227 679,000 Amortization of deferred charges 67,831 42,686 64,333 42,662 Amortization of goodwill 40,912 18,299 - - Amortization of the excess of book value of investment in subsidiary over cost (2,199) - - - Addition to bad debt and allowance for doubtful accounts 312,595 374,845 268,573 332,468 Unrealized gain on exchange (14,773) (889,505) (14,773) (889,505) Additions to allowance for obsolete inventories 89,206 186 - - Addition to allowance for loss on collection of other receivables 3,860 - - - Net result of investment in subsidiary and associated companies (6,043) (3,591) (493,419) (56,557) Net income of minority interests in the subsidiaries 19,805 47,510 - - Increase in accounts and notes receivable (715,499) (651,499) (494,621) (632,473) Decrease in advances to related parties 7,604 164,805 210,927 128,417 Decrease (increase) in inventories (386,869) 10,486 - - Decrease (increase) in other current assets (32,252) 83,367 (103,619) 87,837 Decrease (increase) in other assets 15,580 (12,112) 14,538 (12,892) Increase (decrease) in accounts payable and accrued expenses (2,301,702) 978,892 (2,338,321) 953,597 Increase (decrease) in advances from related parties 460 (64,215) 22,279 (6,364) Increase (decrease) in other current liabilities (455,573) 433,661 (543,807) 423,862 Increase in deposits from customers 163,084 81,239 229,004 89,208 Gain on sales of property and equipment (1,528) (722) (153) (164) Losses on disposal of assets 8,615 - 3,599 - Net Cash Provided by Operating Activities 112,982 3,317,809 21,254 3,073,105 See notes to financial statements (To be continued in page 12) ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 1999 AND 1998 (UNAUDITED) (Amounts in thousand Baht) Consolidated Company's Separate Statements of Cash Flows Statements of Cash Flows (Continued from page 11) 1999 1998 1999 1998 CASH FLOWS FROM INVESTING ACTIVITIES Net decrease (increase) in short-term investments (38,842) 528,492 (13,730) 817,829 Net decrease in short-term loans to related parties - 500 - - Addition to investment in a subsidiary (949,600) - (949,600) - Additions to investments in property and equipment (246,833) (407,370) (208,610) (397,146) Proceeds from sales of property and equipment 19,633 2,662 17,261 834 Additions to investments in mobile phone and pager service networks under concession agreements (912,548) (4,533,395) (880,930) (4,525,716) Additions to investments in deferred charges (81,714) (199,081) (66,715) (199,082) Net Cash Used for Investing Activities (2,209,904) (4,608,192) (2,102,324) (4,303,281) CASH FLOWS FROM FINANCING ACTIVITIES Net decrease in loans from banks (881,658) - (694,100) - Net decrease in short-term bonds (110,100) (2,110,000) (110,100) (2,110,000) Net increase (decrease) in long-term bonds (500,000) 2,000,000 (500,000) 2,000,000 Net increase (decrease) in long-term liabilities (4,367,004) 1,946,243 (4,367,004) 1,946,243 Proceeds from increase in share capital 8,280,000 - 8,280,000 - Payments of interim dividend - (257,400) - (257,400) Net Cash From Financing Activities 2,421,238 1,578,843 2,608,796 1,578,843 NET INCREASE IN CASH 324,316 288,460 527,726 348,667 CASH AT BEGINNING OF PERIOD 2,062,845 520,093 1,690,915 432,802 CASH AT END OF PERIOD 2,387,161 808,553 2,218,641 781,469 (Please see supplemental disclosures of cash flow information in page 13) 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 Paid During the Three-Month periods Ended June 30, 1999 and 1998 Consolidated Company's Separate (Amounts in thousand Baht) Statements of Cash Flows Statements of Cash Flows 1999 1998 1999 1998 Interest expense 218,990 232,197 216,685 232,197 Income tax 744,294 360,149 607,811 298,149 Interest Expense and Income Tax Paid During the Six-Month periods Ended June 30, 1999 and 1998 Consolidated Company's Separate (Amounts in thousand Baht) Statements of Cash Flows Statements of Cash Flows 1999 1998 1999 1998 Interest expense 557,531 643,923 551,269 605,118 Income tax 1,656,608 370,813 1,431,869 306,618 Non-Cash Investing Activities for the Three-Month Periods Ended June 30, 1999 and 1998 in the 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 657.36 million for the three-month period ended June 30, 1999 and Baht 2,769.96 million for the three-month period ended June 30, 1998. As at June 30, 1999 and 1998 outstanding debts in the consolidated balance sheets relative to the aforesaid investments, amounting to approximately Baht 514.35 million and Baht 2,270.55 million, respectively, are includedin accounts payable; amounting to approximately Baht 0.35 million and Baht 2.92 million, respectively, are included in advances from related parties; and amounting to approximately Baht 73.97 million and Baht 115.77 million, respectively, are included in other current liabilities. See notes to financial statements (Continued from page 13) Non-Cash Investing Activities for the Three-Month Periods Ended June 30, 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 611.19 million for the three-month period ended June 30, 1999 and Baht 2,762.23 million for the three-month period ended June 30, 1998. As at June 30, 1999 and 1998, outstanding debts in the balance sheets relative to the aforesaid investments, amounting to approximately Baht 511.91 million and Baht 2,269.20 million, respectively, are included in accounts payable; amounting to approximately Baht 0.35 million and Baht 2.92 million, respectively, are included in advances from related parties; and amounting to approximately Baht 72.96 million and Baht 115.71 million, respectively, are included in other current liabilities. Non-Cash Investing Activities for the Six-Month Periods Ended June 30, 1999 and 1998 in the 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 1,241.09 million for the six-month period ended June 30, 1999 and Baht 5,139.85 million for the six-month period ended June 30, 1998. As at June 30, 1999 and 1998 outstanding debts in the consolidated balance sheets relative to the aforesaid investments, amounting to approximately Baht 732.70 million and Baht 4,205.99 million, respectively, are included in accounts payable; amounting to approximately Baht 0.35 million and Baht 2.92 million, respectively, are included in advances from related parties; and amounting to approximately Baht 109.20 million and Baht 342.48 million, respectively, are included in other current liabilities. Non-Cash Investing Activities for the Six-Month Periods Ended June 30, 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 1,156.25 million for the six-month period ended June 30, 1999 and Baht 5,121.94 million for the six-month period ended June 30, 1998. As at June 30, 1999 and 1998, outstanding debts in the balance sheets relative to the aforesaid investments, amounting to approximately Baht 730.26 million and Baht 4,204.64 million, respectively, are included in accounts payable; amounting to approximately Baht 0.35 million and Baht 2.92 million, respectively, are included in advances from related parties; and amounting to approximately Baht 108.19 million and Baht 342.42 million, respectively, are included in other current liabilities. See notes to financial statements ***