-Translation- CP-AIS 012/2004 February 19, 2004 Subject: Submission of audited consolidated and company financial statements for the year ended 31 December 2003 and explanation of differences of operating result between 2003 and 2002 is over 20 percent To: President The Stock Exchange of Thailand Enclosure: 1. Audited consolidated and company financial statements for the year ended 31 December 2003 both Thai and English version 2. Management Discussion and Analysis for 2003 both Thai and English version Advanced Info Service Public Company Limited ("the Company") would like to submit the audited consolidated and company financial statements for the year ended 31 December 2003 including an explanation of differences of operating result between the 2003 and 2002. The Company and its subsidiaries reported the net profit of Baht 18,529 million, an increase of Baht 7,099 million or 62.1 percent from Baht 11,430 million in 2002, due mainly to; 1. Revenue - Revenue from services and equipment rental for 2003 recorded Baht 73,750 million, increased by Baht 12,824 million or 21.0 percent when compared with previous year. The result came from a larger customer base and higher average usage of 1-2-Call! and changing in scratch card selling price to channels of distribution. - Revenue from sales for 2003 recorded Baht 15,742 million, decreased from Baht 19,325 million or 18.5 percent when compared with year 2002. The result was that reduction in sales volume of mobile units and lower average selling price. 2. Cost and Expense - Concession fee and excise tax for 2003 recorded Baht 17,726 million, increased by Baht 2,471 million or 16.2 percent when compared with year as a result of an increasing in mobile phone service revenues. - Cost of services and equipment rental for 2003 was Baht 19,532 million, increased by Baht 4,841 million, or 33.4 percent when compared with previous year. This primarily came from the amortization of mobile phone networks increased resulting from the expansion in mobile service network and also cost of maintenance increased. - Cost of sales in 2003 was Baht 12,341 million, decreased by Baht 2,734 million, or 18.1 percent when compared with year 2002 as a result of decreasing in sale volume of mobile units. - Selling and administrative expenses for 2003 were Baht 12,320 million, decreased by Baht 1,482 million or 10.7 percent from previous year, because of the main reasons: 1) Marketing expense decreased Baht 335 million was mainly due to and expense in a migration program from analog NMT system to digital GSM system in previous year. 2) A decrease in allowance for doubtful accounts by Baht 1,980 million as a result of the Company and its subsidiaries' effort in strengthening in collection performance. 3) During 2003, the Company and its subsidiaries recorded loss on write off asset under concession of Baht 892 million which related to site preparation and installation costs of network base station that were no longer in operations as a result of network optimization was Baht 598 million and came from technology obsolescent was Baht 294 million. Please be informed accordingly. Yours sincerely, -Signed- Mr. Somprasong Boonyachai Director Advanced Info Service Public Company Limited Group Compliance Tel. 0-2299-5561