-Translation- AIS 0474/2001 August 14, 2001 Subject : Submission of the Reviewed Financial Statements for the Second Quarter of Year 2001 To: The President The Stock Exchange of Thailand Enclosure: 1. One set of reviewed financial statements for the second quarter of 2001-Thai version 2. One set of reviewed financial statements for the second quarter of 2001- English version The Board of Directors' Meeting Number 5/2001 of Advanced Info Service Plc. ("the Company") held on August 14, 2001 at 10.00 a.m. at the Board Room, 20th floor, Shinawatra Tower 1, 414 Phaholtothin Road, Samsen Nai, Phayathai, Bangkok 10400, resolved the approval of the Company's reviewed financial statements for the second quarter of 2001. The Company would like to submit the reviewed financial statements for the second quarter of 2001, one set of Thai version and one set of English Version. In addition, the Company would like to clarify the operational results for the second quarter of 2001 as follows: 1. The Company's total revenue in the second quarter of 2001 was Baht 9,741 million, increased from the second quarter of 2000 by Baht 2,636 million or 37%. This increase was mainly due to the increase in subscriber base from 1,481,267 in the second quarter of 2000 to 3,029,300 in the second quarter of 2001. However, in the second quarter of 2000, total revenue included Baht 1,032 million of compensation income from value added tax from the Telephone Organization of Thailand (TOT). If this amount were excluded from the second quarter of 2000, the total revenue in the second quarter of 2001 would increase by Baht 3,667 million or 60%. 2. The Company's cost of services and equipment rentals increased by Baht 1,609 million or 49% from the second quarter of 2000 due to two main reasons. First, the revenue sharing paid to TOT increased due to the increase in service revenue coupled with the increase in revenue sharing percentage,from 20% to 25% according to the concession agreement.Secondly, amortization of costs of mobile phone network under concession agreements also increased due to the expansion of mobile phone network.However, the ratio of total cost of services and equipment rentals to total revenue (excluding compensation income from value added tax) decreased from 54% in the second quarter of 2000 to 50% in the second quarter of 2001. 3. The Company's selling and administrative expenses increased by Baht 923 million or 144% from the second quarter of 2000, which was mainly due to an increase in marketing expense and an increase in allowance for doubtful accounts, in accordance with the Company's new policy which is more conservative. 4. The Company's net profit in the second quarter of 2001 was Baht 2,301 million which is very close to the net profit of the second quarter of 2000. However, excluding the compensation income from value added tax, the net profit in the second quarter increased from Baht 1,580 million in the second quarter of 2000 to Baht 2,301 million in the second quarter of 2001 or an increase of 46%. Please be informed accordingly. Respectfully Yours, -Signed- Mr. Somprasong Boonyachai Director Advanced Info Service Public Company Limited Compliance Unit Tel. 299-5221,5206