-Transaltion- AIS 0587/2001 November 13, 2001 Subject : Submission of the Reviewed Financial Statements for the Third Quarter of Year 2001 To : President The Stock Exchange of Thailand Enclosure : 1. One set of reviewed financial statements for the third quarter of 2001-Thai version 2. One set of reviewed financial statements for the third quarter of 2001 - English version The Board of Directors' Meeting Number 8/2001 of Advanced Info Service Public Company Limited ("the Company") held on November 13, 2001 at 10.00 a.m. at the Board Room, 20th floor, Shinawatra Tower 1, 414 Phaholyothin Road, Samsen Nai, Phayathai, Bangkok 10400, resolved the approval of the Company's reviewed financial statements for the third quarter of 2001. The Company would like to submit the reviewed financial statements for the third quarter of 2001, one set of Thai version and one set of English version. In addition, the Company would like to clarify a decrease in net profit of Baht 836 million or 43%, from Baht 1,940 million in the third quarter of 2000 to Baht 1,104 million in the third quarter of 2001, as follows: 1. The Company's revenue from services and equipment rentals in the third quarter of 2001 was Baht 10,066 million, increased from the third quarter of 2000 by Baht 3,724 million or 59%. This increase was mainly due to the increase in subscriber base from 1,657,871 in the third quarter of 2000 to 3,812,850 in the third quarter of 2001. 2. The Company's cost of services and equipment rentals increased by Baht 1,905 million or 53%, due to; - 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 since October 2000. - Amortization of costs of mobile phone network under concession agreements also increased due to the expansion of mobile phone network. Additionally, the Company has changed the economic useful life of mobile phone networks of NMT system from not exceeding year 2005 to not exceeding June 2003. This change in useful life increased the amortization charge by the amount of Baht 389 million for the third quarter of 2001. 3. The Company's selling and administrative expenses increased by Baht 1,091 million or 155% from the third quarter of 2000, which was mainly due to an increase in marketing expense and an increase in allowance for doubtful accounts. 4. In the third quarter of 2001, the Company has provided Baht 570 million in respect of impairment in the carrying value of its cost of mobile phone networks of NMT system under concession agreement, while there was no such expense in the third quarter of 2000. Please be informed accordingly. Respectfully Yours, -Signed- Somprasong Boonyachai Director Advanced Info Service Public Company Limited Compliance Unit Tel. 0-2299-5206, 5221