Translation AIS 437/2002 November 14, 2002 Subject : Submission of Reviewed Financial Statements for the Third Quarter of the Year 2002 To : The President The Stock Exchange of Thailand Enclosure : One set of Reviewed Financial Statement for Quarter 3/2002 The Board of Directors' Meeting of Advanced Info Service Public Company Limited (the Company) No. 8/2002, held on November 14, 2002, at 2.00 p.m. approved the Balance Sheets, Profit and Loss Statements, and Cash Flow Statements for the third quarter ended September 30, 2002. The Company would like to submit the reviewed financial statements for the third quarter of 2002 with an explanation of the operating results. The Company reported a net profit for the third quarter of 2002 of Baht 2,929 million, an increase of Baht 1,825 million or 165% from the third quarter of 2001 due mainly to the following: 1. The Company and subsidiaries' revenue from services and equipment rentals in the quarter 3/2002 was Baht 15,024 million, increased from the quarter 3/2001 by Baht 4,429 million or 41.8%. The increase was mainly due to the significantly larger subscriber base, especially prepaid service, which grew from 1,438,300 subscribers in quarter 3/2001 to 7,040,0200 subscribers in quarter 3/2002. 2. The Company and subsidiaries has sold investment in Advanced Paging Co., Ltd. in the amount of Baht 256 million, and gained on sale of investment in the amount of Baht 25 million (Equity Method). 3. The Company and subsidiaries' cost of services and equipment rentals in the quarter 3/2002 was Baht 7,498 million, increased from the quarter 3/2001 by Baht 1,532 million or 25.7%. This increase was primarily due to the acceleration of amortization of the NMT network, in the amount of Baht 161 million. Moreover, revenue sharing paid to the TOT also increased, in line with the service revenue growth. 4. The Company and subsidiaries' selling and administrative expense in the quarter 3/2002 was Baht 3,968 million (excluding impact from foreign exchange), increased from the quarter 23/2001 by Baht 1,441 million or 57%. This was mainly due to an increase in marketing expense from campaign to migrate users of the analog system to switch to the better-quality digital system, as well as due to the higher doubtful account provisions resulted when the Company began to waive customer deposits. 5. The Company's interest expense in the quarter 3/2002 was Baht 796 million, increased from the quarter 3/2001 by Baht 384 million or 93%. This increase was due to additional issuance of debentures, proceeds of which would be used to expand the mobile phone network. Please be informed accordingly. Sincerely yours, -Signed- Mr. Somprasong Boonyahcai Director Advanced Info Service Public Company Limited Compliance Department Tel. 0-2299-5206, 5221