- Translation - AIS-CP 105/2007 November 13, 2007 Subject: Submission of reviewed consolidated and company financial statements for the third quarter of 2007 (3Q07) and clarification of a difference in net profit of the Company financial statements, for the nine-month periods, which changed by more than 20% from the same period of last year. To: The President The Stock Exchange of Thailand Enclosure: 1. Reviewed consolidated and company financial statements for 3Q07 in Thai and English 2. Management and Discussion Analysis for 3Q07 3. Reports Review Quarterly Financial Statements (F45-3) Advanced Info Service Public Company Limited ("the Company") would like to submit the reviewed consolidated and company financial statements for 3Q07. In addition, the Company would like to clarify the reasons of a difference in net profit of the Company financial statements, which changed by more than 20% from the same period of last year. For the nine-month period ended 30 September 2007, net profit on the Company financial statements was Baht 9,842 million, dropped 25.4% from Baht 13,191 million over the same period of 2006 due mainly to: 1. The Company did not have a dividend income in this period while it received a dividend income of Baht 2,017 million from Digital Phone Company Limited in 2Q06. 2. Selling and administrative expenses increased 28.3% year-on-year (y-o-y) to Baht 8,644 million for a 9 month period of 2007 (9M07) from Baht 6,737 million in 9M06 from higher marketing expenses, bad debt provision and staff costs. Marketing expenses were Baht 2,451 million in 9M07, increased 40.1% y-o-y from Baht 1,750 million in 9M06 as competitive landscape in this year was much different from last year. During the period of 9M06, marketing activities were low and subscriber growth was relatively much smaller. Bad debt provision increased to Baht 1,147 million in 9M07 from Baht 192 million in 9M06 due to aggressive postpaid subscriber acquisitions since the beginning of 2007 and the Company's conservative provisioning policy. Despite a substantial increase in bad debt provision, quality of account receivables remained high given over 90% of gross account receivable aging fell under 3 months overdue. Staff costs increased 7.9% y-o-y to Baht 2,060 million in 9M07 from Baht 1,910 million in 9M06 from higher number of staff. As at end of September 2007, the Company reported total number of staff of 5,135 persons, increased from 4,619 persons over the same period of last year. 3. Cost of services and equipment rentals increased 6.3% y-o-y to Baht 18,944 million in 9M07 from Baht 17,825 million in 9M06 from higher amortization cost, utilities and other network related expanses following a large spending on network investment last year and shortening concession life. Please be informed accordingly, Yours faithfully, - Signed - Mr.Vikrom Sriprataks Director Advanced Info Service Plc.