- Translation AIS 0252/1999 November 15, 1999 Subject : The practice in accordance with a new Accounting Standard and the Accounting for the Cost of Mobile telephone Network To : President Stock Eschange of Thailand As in the Quarter3, 1999, AIS has changed the accounting method to amortize the cost of mobile telephone network under concession. Originally, the company had amortized over the remaining period of the concession agreement. The management now decides to amortize the cost of such mobile telephone network over the expected remaining cash-inflow and revenue producing period of the underlying equipment. The management has considered that adoption of such underlying method will present more fairly the economic value from use of concession assets than original method did. Furthermore, this also enhances the comparability of the financial performance and operation of AIS with that of the major oversea communication operators, which adopted International Accounting standards. According to the new amortization basis, the NMT analogue system is amortized on straight-line basis over ten years period but not exceed year 2005, and for GSM digital system is amortized on a straight line basis over ten years periods but not exceed the concession period. The effects of that change affect only numbers in accounting, not in the cashflow. I would like to present this memorandum for your acknowledgement. Sincerely yours, -Signed- (Mr. Somprasong Boonyachai) Director Advanced Info Service Public Company Limited