-Translation- AIS 045/2546 February 20, 2003 Re: Notification of the Connected transaction in relation to Lease Agreements To: The President The Stock Exchange of Thailand Advanced Info Service Public Company Limited (the "Company") would like to inform you that the Company and its subsidiary have entered into the Lease Agreements with a group of companies of a major shareholder of the Company that detailed as follows: Date of Transaction within February 2003 Parties involved Lessee: the Company and Advanced Contact Center Co., Ltd. (ACC), which is a 99.99% subsidiary of the Company. % holding of Shinawatra Family Lessor: OAI Asset Co., Ltd. (OAIA) 99.99 SC Office Park Co., Ltd. (SOP) 60.00 Worth Supplies Co., Ltd. (WS) 72.18 OAI Property Co., Ltd. (OPP) 67.01 Upcountry Land Co., Ltd. (UL) 99.99 Relationship OAIA, SOP, WS, OPP, and UL are owned by Shinawatra Family and Shinawatra Family is a major shareholder of Shin Corporation Public Co., Ltd. (SHIN), (47.24% holding) which is a major shareholder of the Company, (43.06% holding). General Characteristics of the Transaction - The Company and ACC rent the office space in Shinawatra Tower 2,and the Company rents the office and parking space in the White House building, office and parking space in MWA buildings and warehouse and parking space at Phaholyothin building, Phaholyothin Soi 13 with OAIA for three years starting from January 1, 2003 to December 31, 2005, totaling rental fee of Baht 243.94 million. - The Company rents office space in Shinawatra Tower 1 with SOP for three years starting from January 1, 2003 to December 31, 2005, totaling rental fee of Baht 193.21 million. - The Company rents the office space in the Shinawatra Group's building (Chiang Mai) with WS for three years starting from January 1, 2003 to December 31, 2005, totaling rental fee of Baht 44.51 million. - The Company rents the office space in Shinawatra Tower 3 with OPP for three years starting from May 1, 2003 to April 30, 2005, totaling rental fee of Baht 9.62 million. - The Company rents office space for 3 branches of service centers : Udonthani, Nakornsawan, and Suratthanee with UL for three years starting from January 1, 2003 to December 31, 2005, totaling rental fee of Baht 15.70 million. The Basis of Pricing The lease agreements are entered into and renewed based on comparative market rates, location, facilities, and the costs of moving and modifications required. In particular the lease agreements of Shinawatra Tower 1 and 2, the Company engaged independent professional appraisers approved by the SEC Office to appraise the rental fees. Connected Transaction and its Conditions The entering into the lease agreements of the Company and its subsidiary are considered as a connected transaction of listed company prescribed in the Notification of the Stock Exchange of Thailand (SET) in relation to rules, procedures and disclosure of connected transactions of listed company. The size of transaction is baht of 506.98 million, or 1.71% of net tangible assets as of September 30, 2002, which is over 0.03% but less than 3.00% of net tangible assets, thus the Company is required to report the transaction to the SET. Please be informed accordingly, Yours sincerely, -Signed- Mr. Somprasong Boonyachai Director Advanced Info Service Public Company Limited Compliance Department Tel. 0-2299-5561