NOTE 28 - COMMITMENTS Lease Agreements Other than those commitments under lease agreements as described in Note 3 to the financial statements, the Company and its subsidiaries have entered into lease agreements covering spaces for branch offices, base stations, cars and others for periods ranging from 11 months to 22 years with options to renew. The Company and its subsidiaries are committed to pay for rental in respect of the said agreements as follows: Million Baht Per Month For Advanced Info Service Public Company Limited 17.90 For Advanced Info Service Public Company Limited and subsidiaries 20.09 Bank Guarantees At June 30, 1999, the Company and its subsidiaries had commitments with banks whereby the latter issued letters for guaranteeing the Company and its subsidiaries in respect of business contracts, electricity use, customs duties and others in the following amounts: Million Baht For Advanced Info Service Public Company Limited 3,665.67 For Advanced Info Service Public Company Limited and subsidiaries 3,784.74 Contracts for Construction and Equipment Installation of Mobile Phone and Pager Networks At June 30, 1999, the Company and a subsidiary had outstanding commitments under contracts relating to the construction and installation of equipment for the operations of mobile phone and pager networks amounting to approximately Baht 229.40 million. Data Broadcast Via Satellite Agreement A 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 said subsidiary is committed to pay for rental 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 payments of related interest, deriving from the fluctuation of exchange rates and interest rates under loans in foreign currencies, the Company has entered into an interest rate and currency exchange agreement to exchange the US dollar loan principal from US$ 13,000,000 to Baht 328,900,000, and to exchange the related loan interest rate on US dollar principal at the 6 month LIBOR plus the rate per annum as prescribed in the agreement to the fixed rate on Baht principal at the rate of 9.68% per annum. Value date of the said agreement is December 26, 1999. Forward Exchange Contracts In order to hedge against the risk of exchange losses from future repayments of foreign currency loans and the payments of related accrued interest and foreign trade accounts payable, the Company and a subsidiary have entered into sixteen currency exchange contracts to cover loans, interest and trade accounts payable amounting to US$ 58,185,161.37 for a total value of Baht 2,178,787,836.44. Value dates of these sixteen contracts are covering from July 20, 1999 to March 31, 2000. In addition to the above, the Company has also entered into three sale forward exchange contracts, to sell US$ 13,010,448 from July 2, 1999 to December 27, 1999 for a total value of Baht 503,125,426.72. Principal Only Swap Contracts In order to hedge against the risk of exchange losses from future repayments of foreign currency loans and the payments of related interest, the Company has entered into four currency exchange contracts to cover loans and related interest amounting to US$ 49,960,000 for a total value of Baht 1,927,208,168.18. Value dates of these four contracts are covering from March 15, 2002 to March 29, 2002. Interest Rate Exchange Agreements In order to hedge against the risk of losses from interest payments, which may derive from the fluctuation of interest rates under foreign currency loans, the Company has entered into two interest rate exchange agreements, to exchange the related interest rates on US dollar loan principals of US$ 15,635,790 (comprise 6 month LIBOR plus the rate per annum as prescribed in each agreement) to the fixed rates on US dollar loan principals ranging from 5.43 - 5.53% per annum. Periods of those two agreements are covering from September 15, 1998 to September 15, 2002. Letters of Credit At June 30, 1999, a Company's subsidiary had commitments under letters of credit with overseas suppliers amounting to approximately Baht 7.43 million. Purchase Orders As at June 30, 1999, the Company had purchase commitments with respect to the construction and installation of equipment for the operations of mobile phone network amounting to approximately Baht 2,254.20 million. NOTE 29 - RECLASSIFICATION OF ACCOUNTS Certain accounts in the financial statements for the three-month and six-month periods ended June 30, 1998 have been reclassified to conform with the presentation in the financial statements for the three-month and six-month periods ended June 30, 1999. NOTE 30 - COMPUTER REMEDY PLAN FOR THE YEAR 2000 (UNREVIEWED BY THE AUDITORS) The Year 2000 problem arises because many computerized systems use two digits rather than four to identify year. Date-sensitive systems may recognize the year 2000 as some other dates, resulting in errors when information using year 2000 dates is processed. Entities may experience the effects of Year 2000 problem before, on, or after January 1, 2000, and that the effects on operations and financial reporting, if not addressed and repaired properly and timely, may range from minor errors to significant systems failure which could affect an entity's ability to conduct normal business operations. In addition, it is not possible to be certain that all aspects of the Year 2000 problem affecting the entity, including those related to the efforts of customers, suppliers, or other third parties, will be fully resolved. The management of the Company and subsidiaries have instructed their Management Information System Divisions to study the existing computer systems, applications and hardware to develop a computer remediation plan for the year 2000. As of June 30, 1999, the computer remedy projects of the Company and its subsidiaries had been completed. Total expenditure for the computer remedy projects for the Company and its subsidiaries were approximately Baht 30.66 million, comprised expenses amounting to approximately Baht 1.68 million and assets amounting to approximately Baht 28.98 million. Although computer remedy projects of the Company and its subsidiaries have been completed and implemented, the Company and its subsidiaries still face risks that other parties with which the Company and its subsidiaries do business may be unsuccessful in their computer remedy projects within the time limit. However, the management of the Company and its subsidiaries expect that the impact, if any, will not be significant to the operations of the Company and its subsidiaries. ***