-Translation- AIS 239/1999 October 20,1999 Re : Clarification of ADVANCE's acquisition To : President Stock Exchange of Thailand The Board of Directors' Meeting of Advanced Info Service Plc. (ADVANC) No. 7/1999 which was held on October 20,1999 at 14.00 p.m., has resolved to acquire ordinary shares of Shinawatra Datacom Ltd. (SDC) and Data Network Solution Ltd. (DNS) from Singapore Telecom International Pte Ltd. (STI) , a Major Shareholder of ADVANC. The details of such transaction are as follows: Transaction Date: October 20,1999 Parties Involved: Purchaser Advanced Info Service Plc. (ADVANC) Seller Singapore Telecom International Pte Ltd.(STI) Relationalship between parties: STI is the Major Shareholder of ADVANC with 18.63% shareholding Details of the acquired assets 1.Shinawatra Datacom Co.,Ltd. Company's Name: Shinawatra Datacom Co.,Ltd. Type of Securities: Ordinary Shares Nature of Business: Data Network Communications services providing nationwide on-line data and voice transfer with normal speed based on Packet Switching , X.25 ,TDM techonology (Normal Speed Backbone) . Registered and Paid-Up Capital: 457.52 million baht , per value 10 baht per share Board of Directors: 1.Mr.Somprasong Boonyachai 2.Mr.Arak Chonlatanon 3.Mrs.Siripen Sitasuwan 4.Mr.Lee Wa Lon 5.Mr.Victor khwok 6.Mr.Allen Lew Yong Keong 7.Miss Nongyao Pajaree 8.Mr.Nipat Jumroonrat 9.Mr.Sutum Malila Major Shareholders: 1.Singapore telecom International Pte Ltd. 40.08% 2.Advanced Info Service Plc. 27.87% 3.TOT 23.50% 4.Tawin & Sun Co.,Ltd. 5.81% 5.Other Shareholders 2.75% No. of acquired shares: 18,339,386 shares Acquisition Price: 273 million baht or about 14.89 baht per share %holding before acquisition: 27.86% %holding after acquisition: 67.95% 2.Data Network Solution Co.,Ltd. Company's name: Data Network Solution Co.,Ltd. Type of Securities: Ordinary Shares Nature of Business: Nationwide Communition Network and high-speed data connection service providers via fiber-optic network , enable for multiplex usage , i.e. voice , data and video with High Speed Frame Relay technology and ATM (Asynchronous Transfer Mode). Registered and Paid-Up Capital: 1 million baht , par value 10 baht per share Board of Directors: 1.Mr.Boonklee Plungsiri 2.Mr.Somprasong Boonyachai 3.Mrs.Siripen Sitasuwan 4.Mr.Lee Wa Lon 5.Mr.Victor Khwok 6.Mr.Allen Lew Yoong Keong Major Shareholders: 1.Bangkok Telecom Engineering Co.,Ltd.51% 2.Singapore Telecom International Pte Ltd. 49% No. of Acquired Shares: 49,000 shares Acquisition Price: 8 million baht , about 163.15 baht per share %holding before acquisition: None %holding after acquisition: 49% Purpose of acquisition SDC and DNS As Thailand's telecommunication business has gradually move from voice communication into data communication , ADVANC view that the DATANET business of SDC and DNS has a growth potential which will be a value-added business for ADVANC and also provide more flexibility in strategic move of SDC and DNS. Total value of transaction ADVANC will acquire original shares of SDC and DNS from STI , a major shareholder of ADVANC , totaling 18,339,386 shares and 49,000 shares ,respectively , amounting to Baht 281,000,000 . The transaction is considered to be a connected transaction as the value of the transaction is accounted for 1.22 percent of net tangible asset of ADVANC . However ,this transaction is not qualified under the conflict of interest definition as per notification number 9 of the Stock Exchange of Thailand. Therefore, any approval of Shareholder's Meeting is not required. Yours Faithfully -Signed- (Mr.Somprasong Boonyachai) Director Advanced Info Service Plc.