-Translation- AIS-CP 078/2008 May 30, 2008 Subject: Notification of settlement agreement between DPC and DTAC To: President The Stock Exchange of Thailand Advanced Info Service Public Company Limited ("the Company") would like to notify the settlement agreement between Digital Phone Co., Ltd., ("DPC"), which 98.55% of its shares are held by the Company, and Total Access Communication Public Company Limited ("DTAC"). Reference is made to the three Arbitral cases in which DTAC filed against DPC for the assignment of the rights to operate the PCN 1800, the facilities and equipment, the roaming fee according to the Agreement to Unwind the Service Provider Agreement ("Unwind Agreement") as details below; a) Black Case No. 36/2546 with the total claimed amount of US$ 16,939,179 due in 2002; b) Black Case No. 62/2546 with the total claimed amount of US$ 18,939,179 due in 2003; and c) Black Case No. 55/2549 with the total claimed amount of US$ 40,631,100 due in 2004 and US$ 46,745,414 due in 2005. On March 25, 2008, the Arbitral tribunal awarded in the Black Case No. 55/2549 and 62/2546 (the"Awards") that DPC paid DTAC for the amount of US$ 14,838,720.80 and US$ 69,901,211.20 plus interest at the rate of 9.50% per annum thereof. (Please refer to the Company's release reference no. AIS-CP 043/2008 submitted to the SET on April 2, 2008 and AIS-CP 047/2008 submitted on April 10, 2008).The Black Case No. 36/2546 is under the consideration of another tribunal, which DPC disagrees with the Arbitral ruling and has a negotiation with DTAC. Subsequently to the negotiation, DPC and DTAC have agreed to settle and surrender all existing and future claims, disputes and obligations arising out of the Unwind Agreement. On May 30, 2008, DPC agrees to pay DTAC for the amount of Baht 3,000 million. In exchange for the said payment, both DPC and DTAC agree to terminate the Unwind Agreement,release each other from any remaining obligation and waive all their respect rights under the Unwind Agreement as well as releasing the other party from any obligation under the Awards. In addition, DTAC also agrees to withdraw the Black Case No.36/2546. DPC has booked the total DTAC claim of Baht 4,739 million under the concession right payable in its financial statement as of December 31, 2007. AIS will incur other income of Baht 1,739 million in its consolidated profit and loss statement. Please be informed accordingly. Yours sincerely, -Signed- Mr. Vikrom Sriprataks Director Advanced Info Service Plc.