AIS 0206/2002 May 13, 2002 Subject : Submission of Reviewed Financial Statements for the First Quarter of Year 2002 To : The President Stock Exchange of Thailand Enclosure: 1. One set of reviewed financial statements for quarter 1/2002 - Thai version 2. One set of reviewed financial statements for quarter 1/2002 English -version Advanced Info Service Public Company Limited ("the Company") would like to submit the reviewed financial statements for the first quarter of 2002. In addition, the Company would like to clarify an increase net profit of Baht 924 million or 40%, from Baht 2,284 million in the first quarter of 2001 to Baht 3,208 million in the first quarter of 2002, as follows: 1. The Company's revenue from services and equipment rental in the first quarter of 2002 was Baht 12,548 million, increased from the first quarter of 2001 by Baht 3,843 million or 44%. The increase was mainly due to the increase in subscriber base from 2,430,474 subscribers in the first quarter of 2001 to 6,161,812 subscribers in the first quarter of 2002. 2. The Company's share of net profit in subsidiaries increased from Baht 530 million in the first quarter of 2001 to Baht 883 million in the first quarter of 2002, or an increase of 67%. This was mainly due to an increase in share of net profit from Advanced Wireless Marketing Co., Ltd. (99.99% subsidiary), as a result of the growing in sales of mobile phones from 471,906 units in the first quarter of 2001 to 782,180 units in .the first quarter of 2002, or an increase of 66%. The details of share of net profit in subsidiaries are as follow: (Unit : Baht Million) share of net profit (loss) in Q1/2002 Q1/2001 %Var Advanced Wireless Marketing Co.,Ltd. 1,510 595 154 Advanced Paging Co., Ltd. (24) (44) 45 Digital Phone Co., Ltd and Shin Digital Co., Ltd. (599) - n/a Others (4) (21) 81 Total 883 530 67 3. The Company's cost of services and equipment rentals increased from Baht 4,630 million in the first quarter of 2001 to Baht 5,565 million in the first quarter o f 2002, or an increase of Baht 936 million or 20%. This increase was primarily from the increase in revenue sharing paid to TOT due to the growth of revenue from services. In addition, the amortization of property and equipment under concession agreements also increased as a result of the expansion of GSM network. 4. The Company's selling and administrative expenses increased from Baht 1,185 million in the first quarter of 2001 to Baht 2,447 million in the first quarter of 2002, or an increase of 107%. The ratio of selling and administrative expenses to revenues from services and equipment rental increase from 14% in the first quarter of 2001 to 20% in the first quarter of 2002. This was mainly due to an increase in marketing expenses, and allowance for doubtful account as, currently, the Company waive the deposit from the customers. 5. The Company's interest expense increase from Baht 232 million in the first quarter of 2001 to Baht 563 million in the first quarter of 2002. This increase was from an increase in the Company's interest bearing debt, used to expand mobile phone network, from Baht 23,515 million at the end of first quarter 2001 to Baht 47,312 million at the end of first quarter 2002. Please be informed accordingly. Respectfully yours, -Signed- (Somprasong Boonyachai) Director Advanced Info Service Plc. Compliance Department Tel. 0-2299-5221,5206