Attachment 1 (Translation) Advanced Info Service Public Company Limited Details of the program regarding the issuance and offering of warrants to purchase ordinary shares to directors and employees of the Company (Employee Stock Option Plan - ESOP) Grant IV 1. Objectives and necessities of offering securities to directors and employees of the Company The objective of the ESOP is to compensate and motivate the directors and employees to perform their duties in the best interests of the Company. This should in turn bring about long-term benefit to the Company, as well as retain them with the Company. The overall program consists of 5 plans during a period of 5 years. The Company will issue and offer warrants to directors and employees of the Company once a year, for 5 consecutive years. The terms of warrants issued each year will not exceed 5 years from the date of issuance, while other details of warrants will be similar for all five issuance. The warrant issuance and allocation each year are subject to approvals of the Board of Directors and Shareholder's meetings. Grant I: The amount of warrants to be issued and offered in 2002 is 14,000,000 units, implying that 14,000,000 ordinary shares (at Baht 1 par value) reserved for the exercise of warrants, equivalent to 0.48 Percent of the paid-up capital of the Company. Grant II:The amount of warrants to be issued and offered in 2003 is 8,467,200 units, implying that 8,467,200ordinary shares (at Baht 1 par value) reserved for the exercise of warrants, equivalent to 0.29 Percent of the total paid-up capital of the Company. Grant III:The amount of warrants to be issued and offered in 2004 is 8,999,500 units, implying that 8,999,500 ordinary shares (at Baht 1 par value) reserved for the exercise of warrants, equivalent to 0.31 Percent of the total paid-up capital of the Company. The amount of warrants to be issued and offered in this year 2005 is 9,794,800 units, implying that 9,794,800 ordinary shares (at Baht 1 par value) reserved for the exercise of warrants, equivalent to 0.33 Percent of the total paid-up capital of the Company. Total amount of ordinary shares reserved for the exercise of warrants under the ESOP Grant I, II, III and IV are equivalent to 1.41 Percent of the total paid-up capital of the Company. Details of warrants particular to ESOP Grant IV as set out below will be proposed to the shareholder's meeting. Meanwhile, the Company expects to use the proceeds from the exercise of rights pursuant to warrants as working capital. 2.Preliminary Details of Warrants in the Second Year Program Type of Warrants Warrants to purchase the Company's ordinary shares, in registered form and non- transferable unless by hereditary or beneficiary transfer as specified in Clause 3.4.3 (hereinafter referred to as "warrant") Total Number of Warrants 9,794,800 units to be Offered Offering Price per Unit Baht 0 (zero Baht) Offering Period The offering shall be completed within one year from the date on which the program is approved by the SEC. Terms 5 years from the issue and offer date. Reserved Shares 9,794,800 shares (at the par value of Baht 1), or 0.33 of the total paid-up shares. Warrant Allocation Method Allocation of warrants to the Company's directors and employees and not offering through the intermediary. Exercise Ratio One warrant per one ordinary share Exercise Price The weighted average closing price of the Company's shares traded on the Stock Exchange of Thailand during the period of 30 days prior to the day of Shareholder's Meeting 2005. Issuing and Offering Date The Company's Executive Committee will determine the date of issuing and offering of warrants. Exercise Period The Company's directors and employees could exercise the rights of the warrants to purchase the Company's ordinary shares as shown in the following details: First Year Directors and employees are entitled to exercise one-third of their allocated warrants to purchase ordinary shares one year after the warrants are issued to them, until the warrants are expired. In case the exercise of rights pursuant to warrants creates a fraction of share(s) less than the board lot determined by the Stock Exchange of Thailand, such fraction will be exercisable in the next of exercise right. Second Year Directors and employees are entitled to exercise one-third of their allocated warrants to purchase ordinary shares two years after the warrants are issued to them, until the warrants are expired. In case the exercise of rights pursuant to warrants creates a fraction of share(s) less than the board lot determined by the Stock Exchange of Thailand, such fraction will be exercisable in the next exercise of right. Third Year Directors and employees are entitled to exercise the remaining of their allocated warrants to purchase ordinary shares three years after the warrants are issued to them, until the warrants are expired. In case the exercise of rights pursuant to warrants creates a fraction of share(s) less than the board lot determined by the Stock Exchange of Thailand, such fraction will be exercisable at the last exercise of right. Rights and Interests Other -None- than those Rights and Interests from Ordinary Shares 3. Other Principle and Conditions for Exercise of Warrants 3.1 Exercise Period of Warrants A holder of the warrant certificate who wishes to exercise their rights to purchase ordinary shares of the Company is required to submit an exercise notice with the Company between 9.00 a.m. and 4.00 p.m. within five business days prior to each exercise date, except for the last exercise period the exercise notice must be submitted during 15 days prior to period of the Last Exercise Period. Ordinary shares purchased in every exercise of warrants will be in whole number of a trading unit on the main board of the Stock Exchange of Thailand, except for the exercise of rights for the last exercise period. 3.2 Exercise Date and Time: Between 9.00 a.m. and 4.00 p.m. of the last business day of every month, ("Exercise Date") except for the last exercise period the exercise date will be during five business days prior to the expired date. 3.3 Qualifications of Directors and Employees Eligible for Warrant Allocation 3.3.1 Any director or employee of the Company with a minimum of one year of service, and not an employee who is sent from a joint venture on a temporary term-basis operation; 3.3.2 Any selected director or employee who is beneficial to the Company (as the case may be); 3.3.3 In the case of any exception not pursuant to Clauses 3.3.1 and 3.3.2, it will be proposed to the meeting of Executive Committee for special consideration; and 3.3.4 The number of warrants as determined by the Company allocated to the respective directors and/or employees of the Company will not necessarily be in the same amount, but will be varied based on the position, work experience, years of service, performance and potential, as well as benefits providing to the Company. 3.4 Warrant Allocation Obligations between the Company and Directors and Employees of the Company 3.4.1 If any director of the Company vacate of office or any employee retire from the Company pursuant to the Company's work rules, prior to exercising the rights under the warrants, such vacated directors or retired employee are entitled to exercise their warrants until the term of warrants. 3.4.2 If any director or employee resign from the Company due to the Company's order of transfer, such director or employee are entitled to exercise their warrants until the term of warrants. 3.4.3 If any director or employee is no longer a director or employee of the Company by reason of decease, disappearance, infirmity, or incompetent, such warrants shall then pass on to the person named as executor or beneficiary of the deceased, disappeared, infirm, or incompetent director or employee, as the case may be. That person will be entitled to exercise those warrants to purchase ordinary shares of the Company until the term of warrants. 3.4.4 If any director resign from the Company prior to expiration of the term of office or any employee resign from the Company for any reason other than as specified in Clauses 3.4.1, 3.4.2, or 3.4.3 above, such director and employee shall be entitled to exercise their warrants to purchase ordinary shares of the Company only the allowed portion within three months after such director and employee resigned from their offices. Alternatively, the executive committee is entitled to determine in the appropriate respect. Remaining warrants which any director or employee is unable to exercise for any of the reasons as stipulated in Clause 3.4.4 shall be submitted to the Company for cancellation. 3.5 In Case of Un-Exercise of Warrants If directors or employees of the Company do not exercise all or some of warrants and terms of warrants are expired, it is deemed that the directors or employees waive their rights on such un-exercised warrants. In this respect, such directors or employees shall not be entitled to claim any compensation from the Company. 3.6 Assistance from the Company in Respect of Sources of Funds for Directors and Employees -None- 3.7 Right Adjustment The Company may reserve additional common shares if the circumstances stipulated in the notification of the Securities and Exchange Commission, relating to the offer for sale of warrants to purchase common shares, occur and cause the adjustment of the rights pursuant to warrants. In the case of the rights adjustment of the ESOP that required more additional shares than the reserved shares, the company shall seek for approval from shareholders, in the next shareholder meeting. Should the warrants expire sooner than the next shareholder meeting, the company shall bring the matter to the shareholder meeting as soon as possible. 4. Effects upon Shareholders from Issuance of Warrants and Offer for Sale to Directors and Employees of the Company on this Occasion 4.1 Effects upon Price Dilution due to the Exercise of Rights to Purchase Shares by Directors and Employees The exercise price is determined as the weighted average closing price of the Company's shares traded on the Stock Exchange of Thailand during the period of 30 days prior to the day of shareholder's meeting, which closes to the market price, the issuance and offering of warrants will not create any effect upon price dilution. However, effects upon price dilution due to the exercise of rights to purchase shares by directors and employees will be subject to the market price of the Company's shares on the day that new shares from the exercise of rights by directors and employees start trading in the Stock Exchange of Thailand. 4.2 Effects upon Existing Shareholders due to Reduced Ownership Ratio or Control Dilution in case Warrants are Exercised by All Directors and Employees as Calculated from the Presently Paid-up Capital: Number of the total issued shares = 2,945,822,894 shares (at a par value of Baht 1 each) Number of all shares from = 9,794,800 shares warrant exercise (at a par value of Baht 1 each) Total number of shares after = 2,955,617,694 shares exercise of right (at a par value of Baht 1 each) Ratio of the existing = 99.67 exercise of warrants shareholders after 4.3 The Amount of Reserved Shares for Exercise of Warrants Allocated to Directors and Employees at the Rate not Exceeding 5 of the Total Issued Shares on the Date of Applying for Approval of the Office Number of the total issued shares = 2,945,822,894 shares (at a par value of Baht 1 each) Number of reserved shares for = 9,794,800 shares the exercise of warrant shares (at a par value of Baht 1 each) to be allocated to directors and employees Ratio of reserved shares to = 0.33 of the total issued shares total issued shares 4.4 The List of All Directors (of the Company and its subsidiaries) to Be Allocated Warrants and Employees who are eligible to be allocated Warrants at the Rate Exceeding 5 of Warrant to Be Issued and Offered Name Number of Allocated Percent of Total Warrants (Units) Allocated Warrants 1. Mr.Somprasong Boonyachai 735,500 7.51 Director and Chairman of the Executive Committee - Wireless Communications 2. Ms. Yingluck Shinawatra 650,000 6.64 President - Wireless Communications 3. Mrs.Suwimol Kaewkoon 580,000 5.92 Chief Customer Champion & Terminal Business Officer 4. Mr. Vikrom Sriprataks 500,000 5.10 Chief Technology Officer 5. Mr.Kittsanan Ngamphathipong 500,000 5.10 Executive Vice President - Marketing 6. Mrs. Arpattra Sringkarrinkul 412,000 4.21 Director of Subsidiaries and Executive Vice President - Information System Support 7. Mrs.Aphivan Saipradit 76,100 0.78 Director of Subsidiaries and Managing Director Advanced Datanetwork Communication Co.Ltd. 8. Mr. Suthichai Cheunchoosil 72,300 0.74 Director of Subsidiary and Assistant Vice President - Enterprise Business Note: The amount of warrants to be issued and offered will be 9,794,800 units. 4.5 Ordinary shares issued under the warrants exercised shall have the same rights and status as ordinary shares previously issued by the company in all respects. 5. Description and Conditions of Warrants Warrants issued and offered to directors and employees of the Company shall be subject to rules and conditions pursuant to the Securities and Exchange Commission Notification No. GorJor. 36/2544 Re: Offering of Newly Issued Securities to Directors or Employees dated October 19, 2001 Warrant holders are liable to pay taxes and duties pursuant to the Revenue Code and relevant laws in exercising their rights to purchase ordinary shares. After the Last Exercise Period, remaining warrants shall be deemed invalid and cannot be further exercised in any case. 6. Rights of Shareholders in Opposition of Offering for Sales of Warrants to Directors or Employees pursuant to Notification of the SEC No. Gor.Jor 36/2544 dated October 19, 2001 Pursuant to Clause 14 of the Notification of the SEC No. GorJor. 36/2544 dated October 19, 2001, the issuance and offering of warrants to directors or employees shall to be approved by the Shareholder's Meeting with votes of not less than three quarters of all votes of shareholders attending the meeting and having the right to vote and must not be opposed by shareholders with an aggregate number of shares exceeding 10 of all votes of shareholders attending the meeting. In case of issuance and offering warrants to any director or employee at the rate exceeding five of all warrants offered pursuant to Clause 15 (2) of the Notification of the SEC above, the Shareholder's Meeting will consider the offer for sale with approval on an individual basis and the resolution must have not less than three quarters of all votes of shareholders attending the meeting and having the right to vote and must not be opposed by shareholders with an aggregate number of shares exceeding 5 of all votes of shareholders attending the meeting. 7. List of Directors and Employees Eligible to be Allocated Warrants at the Rate Exceeding Five of All Warrants Name Position Number of Percent of Allocated Total Warrants Allocated (Units) Warrants 7.1 Mr. Somprasong Boonyachai Director and 735,500 7.51 Chairman of the Executive Committee - Wireless Communications The number of times attending the meetings and not attending the meetings of the director during the past year Advanced Info Service Public Company Limited No. of meetings 5 times Attending 5 times Not attending - times 7.2 Ms. Yingluck Shinawatra President - Wireless 650,000 6.64 Communications The number of times attending the meetings and not attending the meetings of the director during the past year Advanced Datanetwork Communication Company Limited No. of meetings 5 times Attending 5 times Not attending - times 7.3 Mrs.Suwimol Kaewkoon Chief Customer 580,000 5.92 Champion & Terminal Business Officer 7.4 Mr. Vikrom Sriprataks Chief Technology 500,000 5.10 Officer The number of times attending the meetings and not attending the meetings of the director during the past year Digital Phone Company Limited No. of meetings 4 times Attending 4 times Not attending - times 7.5 Mr.Kittsanan Ngamphathipong Executive Vice 500,000 5.10 President - Marketing The total amount of warrants to be issued and offered will be 9,794,800 units. Furthermore, the exercise price will be determined as the weighted average closing price of the Company's shares traded in the Stock Exchange of Thailand during the period of 30 days prior to the day of Shareholder's Meeting. Such persons mentioned in Clause 7.1 - 7.5 will not receive cash benefits when calculated from the difference between the offer price (including the exercise price) and the market price. Opinion of the AIS Remuneration Committee February 11, 2005 To : Board of Directors of Advanced Info Service Public Company Limited Whereas the Board of Directors Meeting of Advanced Info Service Public Company Limited has passed a resolution to appoint the Remuneration Committee for the ESOP Program, consists of Mr. Paiboon Limpaphayom (Ph.D.) as the Chairman of the Remuneration Committee, Mr. Boonklee Plangsiri and Mr. Arun Churdboonchart as members of the Remuneration Committee to approve the names of directors, employees of the Company and subsidiaries who will be entitled to receive warrants to exercise to company's ordinary shares exceeding 5 (five) percent of the program,in order to comply with the notification of the Securities and Exchange Commission No. Gor. Jor. 36/2544 regarding the offering of the newly issued securities to directors or employees. The Remuneration Committee for ESOP Program has considered and approved to allocate the warrants to exercise to company's ordinary shares exceeding 5 (five) percent of the program to each of the following directors and employees of Advanced Info Service Public Company Limited and subsidiaries (more)