-Translation- AIS 0238/ 2003 August 7, 2003 Subject: Submission of reviewed consolidated and company financial statements for the second quarter of 2003 and explanation of differences of operating result between the second quarter of the year 2003 and 2002 is over 20 percent To: President The Stock Exchange of Thailand Enclosure: 1. Reviewed consolidated and company financial statements for the second quarter of 2003 both Thai and English version 2. Management Discussion and Analysis for the second quarter of 2003 both Thai and English version Advanced Info Service Public Company Limited ("the Company") would like to submit the reviewed consolidated and company financial statements for the second quarter of 2003 including an explanation of differences of operating result between the second quarter of the year 2003 and 2002. The Company and its subsidiaries reported the net profit of Baht 5,125 million, an increase of Baht 3,599 million or 235.8 percent from Baht 1,526 million in the second quarter of 2002, due mainly to; 1. Revenue - Revenue from services and equipment rental in the second quarter of 2003 recorded Baht 18,406 million, increased by Baht 3,782 million or 25.9 percent when compared with those of the second quarter 2002. The result came from the popularity in prepaid service which was sharply increased the customer base, especially One-2-Call! Subscriber growth. - Revenue from sales in the second quarter of 2003 recorded Baht 4,228 million, slightly decreased from Baht 4,262 million when compared with those of the second quarter 2002. The result is that higher mobile units were sold at competitive selling price. 2. Cost and Expense - Concession fee and excise tax in the second quarter of 2003 recorded Baht 4,512 million, increased by Baht 774 million or 20.7percent when compared with those of the second quarter 2002 because of an increasing in mobile phone service revenues. - Cost of services and equipment rental in the second quarter of 2003 was Baht 4,796 million, increased by Baht 1,239 million, or 34.8 percent when compared with those of the second quarter 2002. This was mainly from 3 reasons: 1) The amortization of mobile phone networks was up Baht 602 million when compared to last year. The company has invested more in mobile phone network to support its subscriber growth. 2) The cost of maintenance of mobile phone networks increased Baht 335 million. This increase was primarily due to having written off Baht 297 million of worth of its spare-parts. 3) The cost of base rental & electricity increased by Baht 265 million due to expansion of base station and more usage by larger customers base. - Selling and administrative expenses in the second quarter of 2003 were Baht 2,667 million, decreased by Baht 1,162 million or 30.3percent from the same period of last year, because of the main reasons: 1) A decrease in allowance for doubtful accounts by Baht 980 million. 2) A decrease from marketing expense by Baht 214 million. Please be informed accordingly. Yours sincerely, -Signed- Mr. Somprasong Boonyachai Director Advanced Info Service Public Company Limited Legal & Compliance Department Tel. 0-2299-5561