-Translation- AIS 0349/2003 November 10, 2003 Subject: Submission of reviewed consolidated and company financial statements for the third quarter of 2003 and explanation of differences of operating result between the third quarter of 2003 and 2002 is over 20 percent To: President The Stock Exchange of Thailand Enclosure: 1. Reviewed consolidated and company financial statements for the third quarter of 2003 both Thai and English version 2. F 45-3 3. Management Discussion and Analysis for the third quarter of 2003 both Thai and English version The Board of Directors' Meeting of Advanced Info Service Public Company Limited ("the Company") No. 5/2003, held on November 10, 2003, approved the balance sheets, statements of income, and cash flow statements of the third quarter of 2003 ended of September 2003. The Company would like to submit the reviewed consolidated and company financial statements for the third quarter of 2003 including an explanation of differences of operating result between the third quarter of 2003 and 2002. The Company and its subsidiaries reported the net profit of the third quarter of 2003 of Baht 4,834 million, an increase of Baht 1,905 million or 65.0 percent from Baht 2,929 million in the third quarter of 2002, due mainly to; 1. Revenue - Revenue from services and equipment rental in the third quarter of 2003 recorded Baht 18,121 million, increased by Baht 3,074 million or 20.5 percent when compared with those of the third quarter 2002. The result came from prepaid service popularity which was increased the customer base. - Revenue from sales in the third quarter of 2003 recorded Baht 3,645 million, decreased from Baht 4,838 million or 24.7 percent when compared with those of the third quarter 2002. The result was that reduction in sales volume of mobile units. 2. Cost and Expense - Concession fee and excise tax in the third quarter of 2003 recorded Baht 4,336 million, increased by Baht 619 million or 16.6 percent when compared with those of the third quarter 2002 as a result of an increasing in mobile phone service revenues. - Cost of services and equipment rental in the third quarter of 2003 was Baht 4,648 million, increased by Baht 867 million, or 22.9 percent when compared with those of the third quarter 2002. This primarily came from the amortization of mobile phone networks increased resulting from the expansion in mobile service network. - Cost of sales in the third quarter of 2003 was Baht 2,890 million, decreased by Baht 791 million, or 21.5 percent when compared with those of the third quarter 2002 as a result of decreasing in sale volume of mobile units. - Selling and administrative expenses in the third quarter of 2003 were Baht 2,834 million, decreased by Baht 1,133 million or 28.6 percent from the third quarter 2002, because of the main reasons: 1) Lower of marketing expense for encouraging customers of the NMT analog system to shift to the Digital GSM advance system was Baht 528 million. 2) A decrease in allowance for doubtful accounts by Baht 281 million. 3) In the third quarter 2002, the Company had losses from unwinding a forward contract by Baht 106 million. 4) Lower Staff costs in the third quarter of 2003 when compared with the same period of last year, as a result of staff incentive accruals regarding to the company performance was Baht 160 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