Auditors' Report To the Shareholders Advanced Info Service Public Company Limited: We have audited the consolidated balance sheet of Advanced Info Service Public Company Limited and subsidiaries as at December 31, 1998, and the related consolidated statements of income, changes in shareholders' equity, retained earnings and cash flows for the year then ended, and the separate financial statements of Advanced Info Service Public Company Limited for the year then ended. The management of Advanced Info Service Public Company Limited are responsible for the correctness and completeness of information presented in these financial statements. Our responsibility is to express an opinion on these financial statements based on our audit. The consolidated financial statements of Advanced Info Service Public Company Limited and subsidiary and the separate financial statements of Advanced Info Service Public Company Limited for the year ended December 31, 1997 were audited by other auditors of the same office whose report dated February 13, 1998, expressed an unqualified opinion on those statements. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Advanced Info Service Public Company Limited and subsidiaries at December 31, 1998, and the consolidated results of their operations and their cash flows for the year then ended, and the separate financial position and results of operations and cash flows of Advanced info Service Public Company Limited for the year then ended, in conformity with generally accepted accounting principles. Without qualifying our opinion, we draw attention to Note 1 to the financial statements. The operations of Advanced Info Service Public Company Limited and subsidiaries since 1997 have been affected and may continue to be influenced for the foreseeable future by the economic conditions in Thailand and the Asia Pacific Region in general. The ultimate effect that these uncertainties will have on stated values or classifications of assets and liabilities at the balance sheet date cannot presently be determined. Nirand Lilamethwat Certified Public Accountant Registration Number 2316 KPMG Audit (Thailand) Limited Bangkok, February 10, 1999 The accompanying financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Thailand. The standards, procedures and practices to audit these financial statements are those generally accepted and applied in Thailand. FINANCIAL STATEMENTS AND AUDITORS' REPORT ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND SUBSIDIARIES DECEMBER 31, 1998 AND 1997 k