Translation AIS 049/2003 February 25, 2003 Subject : Submission of Financial Statements of the Year 2002 To : The President The Stock Exchange of Thailand Enclosure : One set of Reviewed Financial Statement of the Year 2002 The Board of Directors' Meeting of Advanced Info Service Public Company Limited (the Company) No. 2/2003, held on February 25, 2003, at 3.00 p.m. approved the Balance Sheets,Profit and Loss Statements, and Cash Flow Statements of the Year 2002 ended December 31,2002. The Company would like to submit the reviewed financial statements of the Year 2002 with explanation of the operating results. The Company reported a net profit of the Year 2002 of Baht 11,430 million, an increase of Baht 7,579 million or 196.8% from Baht 3,851 million net profit in the Year 2001 due mainly to the following: 1. Revenues * In 2002, the company and its subsidiaries gained Baht 60,926 million of revenue from services and equipment rental, rising Baht 19,185 million or 46% when compared with last year. The result is from notably enlarging the customer bases, especially the Pre-paid system service. * In 2002, Revenue from sales was Baht 19,325 million, an increase Baht 1,876 million or 10.8% when compared with last year, The increase was primary due to the sharp growth of total mobile phone market in 2002, reflecting to increase in company sales volume. 2. Costs & Expenses * In 2002, Cost of services and equipment rental was Baht 29,766 million, up Baht 8,130 million, or 37.6% from the year of 2001. This is because of two main components; 1) the increase of annual revenue sharing payment to TOT as a percentage of the continuously increased income from mobile phone services, and 2) the amortization costs of mobile phone networks. In addition, the company had changed the last date of amortization period of NMT analog system from not over June 2003, to the end of September 2002. The result of the amortization period change is an increase in the amortization expense in 2002 by 322 million baht. * In 2002, Costs of sales was Baht 15,075 million, up Baht 1,536 million or 11.3% from last year, due to the continual increase of mobile phone subscribers, and the lower handset selling price. As a result, the gross profit margin from sales stood at 22% in 2002, slightly decreasing when compared with last year. * In 2002, Sales and operating expenses of the company and its subsidiaries was Baht 13,802 million, up Baht 4,319 million, or 45.5% from the last year. Due to the following main factors. 1) Increase in staff expense of Baht 307 million. 2) Increase in marketing expense by Baht 921 million, mainly from Baht 660 million of the expense in NMT analog migration campaign to digital GSM advance system, higher quality. 3) Increase in allowance for doubtful accounts and bad debts of the company and its subsidiaries by Baht 2,104 million 4) Increase in amortization of goodwill of Baht 578 million. 5) Increase in billing and collection expenses of Baht 217 million. * In 2002, Interest expenses of the Company and its subsidiaries was Baht 3,069 million, up Baht 496 million or 95.1% due to debenture issued and loan increased in order to finance the network expansion. * In 2001, the Company and its subsidiaries provided an impairment in the carrying value of the cost of mobile phone network in analog system (NMT) and pager network of Baht 4,265 million. Please be informed accordingly. Sincerely yours, -Signed- Mr. Somprasong Boonyahcai Director Advanced Info Service Public Company Limited Compliance Department Tel. 0-2299-5206, 5221