- Translation - AIS-CP 116/2008 November 11, 2008 Subject: Submission of reviewed consolidated and company financial statements for the third quarter of 2008 (3Q08) and clarification of a change in net profit of more than 20% To: The President The Stock Exchange of Thailand Enclosure: 1. Reviewed consolidated and company financial statements for 3Q08 in Thai and English 2. Management and Discussion Analysis (MD&A) for 3Q08 in Thai and English 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 3Q08 and clarify the reasons of a difference in net profit of over 20% as follows; In 3Q08, net profit were Baht 4,533 million, increased 29.1% year on year (y-o-y) from Baht 3,512 million in 3Q07 due to strong growth in service revenues, higher interest income and lower selling & administrative expenses. On a quarter-on quarter (q-o-q) basis, net profit decreased 28.4% from Baht 6,333 million in 2Q08 due to recognition of gain from DPC & DTAC dispute settlement of Baht 1,739 million (Baht 1,217 million after tax) in the previous quarter. Excluding this amount, net profit would be dropped only 11.4% q-o-q. Service revenues excluding IC grew 8.3% y-o-y to Baht 20,665 million in 3Q08 from Baht 19,079 million in 3Q07 due to strong growth in prepaid revenue, non-voices, international roaming and international calls (IDD). Interest income in 3Q08 was Baht 117 million, increased 56% y-o-y from Baht 75 million in 3Q07 from higher amount of cash on hand and higher deposit interest rate. As at 30 September 2008, the Company had total cash and cash equivalent of Baht 13,209 million, increased from Baht 7,470 million as at end of 3Q07 based on its profitable operations. Selling and administrative expenses declined 7.7% y-o-y to Baht 2,732 million in 3Q08 from Baht 2,959 million in 3Q07 due to improvement of bad debt provision and discontinued amortization of goodwill (Baht 292 million) following a change in accounting standard (TAS 43 revised 2007). Bad debt provision in 3Q08 was 2.2% of postpaid revenues, declined from 7.0% in 3Q07 based on the Company's conservative credit policy in screening new postpaid subscriber. On a q-o-q basis, service revenues excluding IC dropped slightly by 1.9% due to seasonality and floods in several areas in 3Q08. Considering a cost structure, selling and administrative expenses increased 4.6% q-o-q due to higher marketing expenses from corporate and brand refreshing in 3Q08. Marketing expense to total revenue increased to 2.8% in 3Q08, increased from 2.0% in 2Q08. Net profit in 3Q08, compared to the previous quarter dropped 28.4% because there was a gain from DPC & DTAC dispute settlement of Baht 1,739 million in 2Q08. Excluding this amount, net profit would be dropped only 11.4% q-o-q. Please be informed accordingly. Yours faithfully, - Signed - Mr. Vikrom Sriprataks Director Advanced Info Service Plc. Compliance Department Tel. 02-687-4278, 02-615-3277