2. Nature of Business

2.1 Brief History and Key Development

Key Development before 2007

1986 Advance Info Services Public Company Limited (“the Company” or
“ADVANC) was established as a registered company on 24^(th) April 1986,
to provide leasing and computer service.

1989 Shinawatra Computer and Communications Public Company Limited,
currently known as Shin Corporation Public Company Limited (“SHIN”)
became the major shareholder of AIS, holding 60% shares of the Company’s
registered capital. Its business objective shifted to providing
telecommunications services.

1999 On 19^(th) February 1999, Singtel Strategic Investments Private
Limited (“SingTel”), a group company of a Singapore-base Singapore
Telecommunications Pte. Ltd., operating communications technology and
telecommunications business, became one of the shareholders. SHIN and
SingTel held 43.06% and 19.35%, respectively.

  In February 1999, AIS increased its shareholding proportion from
  60.00% to 99.99% in the Advance Paging Company Limited (APG)
  (originally called Shinawatra Paging Company Limited), which operated
  paging service business. However, APG operations came to an end due to
  a significant decrease in paging service popularity, coupled with a
  decrease in the cost of mobile phone which allowed customers to gain
  easier access to mobile phone. A joint partnership contract was
  returned to TOT in June 2002. In September 2002, APG was sold to other
  company and therefore separated from AIS group.

  In October 1989, AIS bought shares in Advance Datanetwork
  Communications Co., Ltd. (ADC) (originally called Shinawatra Datacom
  Company Limited) in the proportion of 67.95% and bought 49% shares in
  the Datanetwork Solutions Company Limited (DNS). Both companies
  operate information communication service via phone network.

2001 In accordance with the resolution of the Extraordinary
Shareholders’ Meeting No. 2/2001, held on 20^(th) August 2001, the
meeting approved share purchase in Shin Digital Company Limited (SDT)
from SHIN and SingTel in the proportion of 99.99 % or equivalent to a
total investment cost of 540 million Baht. SDT at the time held 97.54%
share in Digital Phone Company Limited (DPC), a GSM1800 mobile phone
operator as well as importer and distributor of mobile phones. AIS
provided financial support to SDT at the amount of 17,300 million Baht
to pay debts to SHIN and SingTel. AIS also arranged for an allocation of
a total of 23.5 million undistributed ordinary shares where 17 million
shares were allocated to SHIN and 6.5 million to SingTel which accounted
for the total value of 10,024 million Baht for future investment.

  In September 2001, AIS invested in the GSM1800 mobile phone system
  operated by DPC, with an already paid registered capital of 8,556
  million Baht. The investment was in the proportion of 99.99% in SDT,
  which at the time held a 97.54% in DPC.

  In accordance with the resolution passed by the Board of Directors’
  meeting No. 8/2001, held on 13^(th) November 2001, the board approved
  a share purchase from Digital Phone Company Limited (DPC) in the
  proportion of 98.17% or equivalent to the total investment cost of
  20,300 million Baht from SHIN Digital Company Limited (SDT). This
  would enable AIS to pay for the existing debt and reduce burden of
  interest on revenue tax. AIS bought share from DPC on 17^(th) December
  2001, which made AIS a direct shareholder of DPC.

2002 In accordance with the resolution passed by the Board of Directors’
meeting No. 5/2002, held on 16^(th) July 2002, the board approved
additional investment of 300 million shares in DPC, calculated at 3,000
million Baht. As a result, in October 2002, AIS held 98.55% of the
registered capital in DPC.

In December 2002, AIS restructured its mobile phone import and
distribution business of Advance Wireless Marketing Company Limited
(AWM) by transferring AWM operations to DPC, one of AIS’ subsidiaries in
order to enhance effectiveness of the overall business operations. (AWM
temporarily held off its operations).

2003 AIS received AA rating for the Company’s credibility and debentures
by TRIS Rating Company Limited, moving up from the previous AA- level.

2004 AIS received an AA (tha) long-term domestic credit rating from
Fitch Rating (Thailand) Company Limited (Fitch) in recognition of its
stability and F1+ (tha) short-term domestic credit rating which
reflected the Company’s strong financial status and market leadership.

AIS received a BBB+ rating from Standard & Poor’s (S&P), moving up from
the BBB rating. The level of credibility of private organization is
equivalent to credibility of Thailand, reflecting AIS’ strength for
being the largest mobile phone service provider in the country.

2005 In July 2005, AIS was named Best Performance company under the
Technology category, Best Investor Relations, and Best Corporate
Governance Report Company by the Stock Exchange of Thailand and Finance
and Banking Magazine at the SET Award 2005.

  In August 2005, AIS officially launched the Advance mPAY Company
  Limited, a join venture between AIS and NTT DoCoMo Incorporation
  Company to provide mobile financial transaction service.

  In September 2005, AIS debentures were divided into six tranches.
  Payments for the Tranch No. 1/2001 is due in 2006 (AIS063A), Tranch
  No.3/2001 is due in 2006 (AIS06NA), Tranch No.1/2002 is due in 2009
  (AIS093A), Tranch No.2/2002 is due in 2009 (AIS093B), Tranch No.3/2001
  is due in 2007 (AIS073A), and Tranch No.4/2001 is due in 2007
  (AIS07OA). Therefore the meeting approved the Company to pay the
  dividends in each year to the shareholders at the amount of over 40
  per cent of the net profit, providing that the Company’s received
  credibility rating of not below AA at least 45 days before the Board
  of Directors approved payment of the dividends.

  In October 2005, AIS received A- rating from Standard and Poor's
  (S&P), moving up from the previous BBB+ rating, which reflects the
  company’s strength from being the largest mobile phone service
  provider in Thailand.

AIS joined together with Communications Authority of Thailand Public
Company Limited to offer a single service invoice for both domestic and
international calls as well as automatic international service for
greater convenience of customers.

2006 On 23rd January 2006, major shareholding group of Shin Corporation
Public Company Limited (“SHIN”) sold shares to Cedar Holding Company
Limited (“Cedar”) and Aspen Holding Company Limited (“Aspen”). Cedar and
Aspen were obliged to make a tender offer for all securities of the
Company (Voluntary Tender Offer) at 72.31 Baht per share. The resolution
of SHIN’ s Board of Directors’ meeting No.1/2006 held on 23^(rd) January
2006, stated that SHIN would not sell the proportion of SHIN ordinary
shares as the business generate major revenue for the Company and SHIN
has continued to maintain effective operating results.

In November 2006, AIS signed an Interconnection agreement with Total
Access Communications Public Company Limited (DTAC).

Key Events in 2007

February AIS signed an Interconnection agreement with True Move Co.,
Ltd.

TRIS Rating Co., Ltd., a Thai local rating agency affirmed “AA”
corporate and debenture credit rating for AIS.

Fitch Ratings Ltd., an international credit rating agency, affirmed
AIS’s long-term local currency issuer credit rating of “AA” and
long-term foreign currency issuer rating of “BBB+” with rating watch
negative given regulatory and legal environment that could potentially
affect the telecom operator.

AIS partnered with Google, one of the world’s largest search engines, to
provide mobile internet service.

AIS ‘Sarnrak-Kon Keng Hua Jai Krang” (Strong Heart, Great Man), a
television documentary received the Television Gold Award 2006 in the
“Knowledge Promotion of Moral and Code of Conduct” category. The award
was presented by the Television Promotion Club, Chamnong Rangsikul
Foundation and Office of the National Culture Committee

March The Board of Directors’ meeting No. 3/2007 approved the
appointment of Mr. Vikrom Sriprataks, Chief of Technology Officer (CTO),
as the Chief Executive Officer (CEO), responsible for wireless
communications business, in place of Mr. Somprasong Boonyachai, who
remains the Company’s Executive Chairman. The appointment was effective
on 1 July 2006.

AIN GlobalComm Co., Ltd. (AIN) officially launched its international
telephone service accessed via the 005 dialing prefix.

April At the 2007 Annual General Meeting of Shareholders, the
shareholders passed a resolution to approve a declaration of dividend
for 2,955 million shares of Baht 3.30 per share, equivalent to a total
of Baht 9,750 million. The dividend declaration was for the six-month
operational period from 1 July to 31December 2006.

AIS was a proud recipient of the 2007 Outstanding Consumer Television
Advertising awards, organized by the Consumer Protection Association.
AIS was the first runner-up for the “Shaving” advertising and the second
runner-up in the Social, Art and Culture and Environmental Promotion
category for the “Always Smile” advertising.

May Wireless Device Supply Co., Ltd. (WDS) was registered with the
Ministry of Commerce as an importer and distributor of mobile phones and
related accessories. Previously this business was undertaken by Digital
Phone Co., Ltd. (DPC).

AIS announced an appointment of Mr. Somchai Lertsutiwong as Executive
Vice President Marketing, responsible for determining strategies and
policy related to management of marketing products including the
pre-paid and post-paid services, international roaming service, Serenade
and individual customers.

June The Board of Directors’ meeting No. 4/2007 approved the Company’s
investment in Bridge Mobile Pte Co., Ltd. (Singapore), which was formed
through a joint force of mobile operators from 10 Asia Pacific countries
to support the international roaming service. AIS purchased 2.0 million
shares in Bridge Mobile, representing 10% of its registered capital and
equivalent to US$ 2.7 million.

Standard & Poor’s (S&P), an international credit rating agency affirmed
‘A-’ corporate credit rating for AIS but revised outlook to negative
from stable given the intense competition and regulatory uncertainties
that could potentially affect the Company’s credit metrics.

GSM advance joined its business alliance with ROK TV, the UK-based
mobile TV developer, in launching ROK TV on mobile service. For the
first time in Thailand, cable TV programs are available on mobile phone.

AIS and Microsoft launched AIS Smart Office services, offering e-mail
solution and enterprise messaging solution to corporate users.

July AIS announced new management appointments in order to enhance
operational effectiveness namely Mrs. Vilasinee Puddhikarant, as Vice
President, Customer & Service Management responsible for customer
relations management or CRM; Mr. Komsan Buppanimite as Vice President,
Channel Management responsible for marketing channel, distribution,
agents, Telewiz shops and pay station; Mr. Waroonthep Watcharaporn as
Managing Director Advanced MPAY responsible for mPAY financial
transaction on mobile; and Mr. Surawat Shinawatra as Managing Director
Advanced Contact Center responsible for management and customer service
at the Call Center.

Digital Phone Co., Ltd. (DPC) launched its house brand mobile phone
called “Phone One”.

AIS One-2-Call! launched its first brail letters prepaid card for
customers who are visually impaired. Part of the proceeds was donated to
the Blind Association of Thailand.

August The Board of Directors’ Meeting No. 5/2007 passed a resolution to
approve a declaration of interim dividend for 2,957 million shares of
Baht 3.00 per share to the Company’s shareholders, equivalent to the
total of Baht 8,871 million. The interim dividend was declared for the
six-month operational period from 1 January to 30 June 2007.

AIS was awarded the “Best in Corporate Governance” by The Asset Magazine
at The Asset Magazine’s Annual Corporate Governance Ranking 2007.

FinanceAsia Magazine presented a second-runner up award for the “Most
Committed to a Strong Dividend Policy in Thailand” to AIS.

Super Broadband Network Co., Ltd. (SBN) was granted a Type-3
facility-based license from the National Telecommunications Commission
(NTC) to operate facility-based telecommunication services to the
public.

September AIS officially opened its new call center at the Foundation
for the Blind in Thailand under the Royal Patronage of H.M. the Queen to
offer job opportunity for the blinds and visually impaired persons as
AIS call center’s staffs.

October AIS received the 2007 Plaque of Appreciation from the Ministry
of Social Development and Human Security for its “Sarnrak-Kon Keng Hua
Jai Krang” television program as a social contribution project that
helps those who are in need.

Super Broadband Network Co., Ltd. (SBN) was granted a Type-1 license
from the NTC to operate the internet service. The Company also received
a Type-2 license from NTC to operate the international internet gateway
service.

December Super Broadband Network Co., Ltd. (SBN) was the first operator
to start a VoIP trial service, through cooperation with the Thai Chamber
of Commerce University. This new service was launched under the name
“AIS Net Call”, which was available for the university students on WiFi
network and set to be officially launched in January 2008.

2.2 Business Overview

Advanced Info Service Public Company Limited (“The Company” or “ADVANC”
or AIS) was established in 1989, and is today the largest mobile
operator in Thailand with 46% share of the subscriber market share and
more than 97% nationwide coverage. AIS is a publicly listed company in
the Stock Exchange of Thailand (SET) since 1991. As of 2007, the
company’s market capitalization of approximately Baht 287 billion (USD
8.6 billion) is among the top five listed companies on the SET. The
company’s major shareholders are 43% Shin Corporation Plc. and 21%
SingTel Strategic Investments PTE Ltd. The remainder 36% is free-float
owned by institutional and retail investors.

AIS operates 900 MHz GSM network, currently with GPRS and EDGE
capability. AIS operation is under a 25-year build-transfer-operate
(BTO) contract granted by TOT Corporation Public Company Limited (TOT),
started from 1990 to 2015. Under the BTO agreement, AIS is required to
build and raise capital for investment in cellular network and transfer
the network ownership to TOT. The company is entitled to the right for
entire commercial operation, including network engineering & planning,
equipment procurement and installation, network maintenance and service
commercialization. In compensated to such economic use, AIS is entitled
to share its revenue from service to TOT in term of revenue share,
currently, at 30% of its postpaid revenue (excluded VAT) and 20% of its
prepaid revenue (included VAT).

AIS also operates 1800 MHz GSM network through its subsidiary, Digital
Phone Co., Ltd. (DPC). DPC operates under a 16-year BTO contract from
CAT Telecom Public Company Limited (CAT), started from 1997 to 2013.
Under the agreement, DPC is entitled to pay revenue share to CAT,
currently at the rate of 25% of its revenue from mobile phone operation.
DPC also has a network roaming agreement with AIS to enable nationwide
service to the GSM 1800 customers as well as to the GSM advance
customers to provide better network service quality for both networks.

In addition to mobile network service, AIS also invests in a 99.99%
owned subsidiary, Wireless Device Network Co., Ltd. (WDS), to run sales
and distribution of handset, SIM card and refill card, previously
undertaken by DPC, another subsidiary. The handset sales and
distribution business in its nature has very thin margin; AIS operate
this business as a strategic move for company to be able to influence
the handset market in term of handset models that support the Company’s
new service applications. SIM card and refill card are distributed
through over 350 authorized Telewiz shops and more than ten thousands of
general dealers and sub-dealers nationwide. In 2007, contribution
revenues from this business to the Company’s total revenues accounted
for 4.50%.

AIS operates its own call center business through its subsidiary,
Advanced Contact Center Co., Ltd. (ACC). With over 2,200 well-trained
call center staffs, the Company is able to provide superior service
quality to its 24 million subscribers. Call center is turning into the
key differentiator for the Company as its services has been evolving
from simple after-sales problem solving related to billing and service
experience to undertaking more proactive and customer-oriented approach
in promoting new marketing campaigns and suggesting new products and
services to both existing and new customers.

In March 2007, the Company commercially launched its new business to
provide international telephone service under AIN GlobalComm Co., Ltd.
(AIN), a wholly owned subsidiary of AIS. AIN is awarded a 20-year
license ended in 2026 from the National Telecommunications Commission
(NTC), which allow them to service through its own international gateway
facility. Under the license term, AIN is entitled to pay a total
regulatory fee of 7% of its revenues; 3% of which is an annual license
fee and 4% is Universal Service Obligation (USO) fee.

Another prospect growth area for AIS is mobile payment business under
Advanced MPAY Co., Ltd. (AMP), a joint venture between AIS with 69.99%
and NTT DoCoMO with 30% shareholding. AMP received a license from the
Bank of Thailand to provide payment services based on the electronic
cash card under “mPAY” brand. mPAY enables AIS’s customers to
conveniently and securely engage in various financial transactions via
mobile phones. Services cover many daily-life transactions including
online shopping, bill payment, recharge of prepaid phone credit as well
as payment for goods and services.

On 23 January 2008, AIS acquired 30% stake in AMP from NTT DoCoMo. After
acquisition, AIS shareholding percentage in AMP increased to 99.99%.

Going forward, AIS is looking to expand its business into fixed lines
area focusing on providing data services as oppose to the traditional
voice service. The business is expected to run through its 99.93%
subsidiary, Super Broadband Network Co., Ltd. (SBN). In 2007, SBN
already obtained licenses from NTC to operate internet (ISP), internet
gateway and broadband, voice over IP, and IP television. On 17 January
2008, SBN received a WiMAX trial license from NTC. Trial license has a
period of 90 days and can be tested in specific areas.

Group structure

AIS currently invests in 12 subsidiaries, employing approximately 8,000
people. As at end of December 2007. Details of subsidiaries are as
follows:

  ---------------------------- --------------------------------- ---------
  Company                      Type of business                  % of
                                                                 holding

  Digital Phone Co., Ltd.      Network operator of 1800 MHz GSM  98.55%
  (DPC)                                                          

  Advanced Data Network        Service provider of online data   51.00%
  Communications Co., Ltd.     communication service via         
  (ADC)                        telephone landlines in Bangkok    
                               and metropolitan area.            

  Advanced Contact Center Co., Service provider of call center   99.99%
  Ltd. (ACC)                   service                           

  Data Network Solutions Co.,  Service provider of online data   49.00%
  Ltd. (DNS)                   communication service via         
                               telephone landlines in provincial 
                               area.                             

  Data Line Thai Co., Ltd.     Internet service provider,        65.00%
  (DLT)                        currently under the process of    
                               closing its operation             

  Mobile From Advance Co.,     Currently not in operation        99.99%
  Ltd. (MFA)                                                     

  Advanced MPAY Co., Ltd.      Service provider of payment       69.99%*
  (AMP)                        business via mobile phone         

  Advanced Magic Card Co.,     Distributor of cash card          99.99%
  Ltd. (AMC)                                                     

  AIN GlobalComm Co., Ltd.     International telephone           99.99%
  (AIN)                        service/gateway provider          

  Super Broadband Network Co., Service provider of internet      99.93%
  Ltd. (SBN)                   (ISP), internet gateway and       
                               broadband, voice over IP, and IP  
                               television.                       

  Wireless Device Supply Co.,  Importer and distributor of       99.99%
  Ltd. (WDS)                   handset and accessories           

  Advanced Wireless Network    Currently not in operation.       99.93%
  Co., Ltd. (AWN)                                                
  ---------------------------- --------------------------------- ---------

* On 23 January 2008, AIS acquired 30% stake in AMP from NTT DoCoMo.
After acquisition, AIS shareholding percentage in AMP increased to
99.99%.

[]

[]

2.3 Revenue structure from providing service & sales income in AIS group
to the third party within 3 years.

+-------------+-----------------+-----+-----+---+----+---+-----+---+
| Serv        | Operation By    | %   | 2   |   | 20 |   | 2   |   |
| ice/Product |                 | H   | 005 |   | 06 |   | 007 |   |
|             |                 | old |     |   |    |   |     |   |
|             |                 | ing |     |   |    |   |     |   |
|             |                 | of  |     |   |    |   |     |   |
|             |                 | sha |     |   |    |   |     |   |
|             |                 | res |     |   |    |   |     |   |
|             |                 | as  |     |   |    |   |     |   |
|             |                 | at  |     |   |    |   |     |   |
|             |                 | 31  |     |   |    |   |     |   |
|             |                 | D   |     |   |    |   |     |   |
|             |                 | ec. |     |   |    |   |     |   |
|             |                 | 07  |     |   |    |   |     |   |
+-------------+-----------------+-----+-----+---+----+---+-----+---+
|             |                 |     | Inc | % | In | % | Inc | % |
|             |                 |     | ome | S | co | S | ome | S |
|             |                 |     |     | i | me | i |     | i |
|             |                 |     |     | z |    | z |     | z |
|             |                 |     |     | e |    | e |     | e |
+-------------+-----------------+-----+-----+---+----+---+-----+---+
| Mobile p    |                 |     |     |   |    |   |     |   |
| hone servic |                 |     |     |   |    |   |     |   |
| e structure |                 |     |     |   |    |   |     |   |
+-------------+-----------------+-----+-----+---+----+---+-----+---+
| - Mobile    | Advanced Info   |     | 78, | 8 | 7  | 8 | 91, | 8 |
| phone       | Services PCL.   |     | 101 | 4 | 5, | 2 | 991 | 4 |
| services &  |                 |     | .22 | . | 22 | . | .78 | . |
| rental      |                 |     |     | 4 | 3. | 2 |     | 8 |
|             |                 |     |     | 2 | 00 | 7 |     | 2 |
+-------------+-----------------+-----+-----+---+----+---+-----+---+
|             | Digital Phone   |     | 1,  | 1 | 9  | 0 | 912 | 0 |
|             | Co., Ltd.       |  98 | 785 | . | 8. | . | .12 | . |
|             |                 | .55 | .28 | 9 | 36 | 1 |     | 8 |
|             |                 |     |     | 3 |    | 1 |     | 4 |
+-------------+-----------------+-----+-----+---+----+---+-----+---+
|             | Wireless Device |     | -   | - | -  | - | 1   | - |
|             | Supply Co.,     |  99 |     |   |    |   | .59 |   |
|             | Ltd.            | .99 |     |   |    |   |     |   |
+-------------+-----------------+-----+-----+---+----+---+-----+---+
|             | AIN Globalcomm  |     | -   | - | -  | - | 984 | 0 |
|             | Co., Ltd.       |  99 |     |   |    |   | .31 | . |
|             |                 | .99 |     |   |    |   |     | 9 |
|             |                 |     |     |   |    |   |     | 1 |
+-------------+-----------------+-----+-----+---+----+---+-----+---+
| - Mobile    | Digital Phone   |     | 12, | 1 | 1  | 1 | 9,  | 8 |
| phone sales | Co., Ltd.       |  99 | 067 | 3 | 5, | 6 | 554 | . |
|             |                 | .99 | .88 | . | 36 | . | .41 | 8 |
|             |                 |     |     | 0 | 2. | 8 |     | 1 |
|             |                 |     |     | 4 | 54 | 0 |     |   |
+-------------+-----------------+-----+-----+---+----+---+-----+---+
|             | Wireless Device |     | -   | - | -  | - | 4,  | 3 |
|             | Supply Co.,     |  99 |     |   |    |   | 164 | . |
|             | Ltd.            | .99 |     |   |    |   | .92 | 8 |
|             |                 |     |     |   |    |   |     | 4 |
+-------------+-----------------+-----+-----+---+----+---+-----+---+
| Sub-total   |                 |     | 91, | 9 | 9  | 9 | 1   | 9 |
|             |                 |     | 954 | 9 | 0, | 9 | 07, | 9 |
|             |                 |     | .38 | . | 68 | . | 609 | . |
|             |                 |     |     | 3 | 3. | 1 | .13 | 2 |
|             |                 |     |     | 9 | 90 | 8 |     | 2 |
+-------------+-----------------+-----+-----+---+----+---+-----+---+
| Data        | Advanced Data   |     | 539 | 0 | 72 | 0 | 838 | 0 |
| network and | Network         |  51 | .61 | . | 8. | . | .75 | . |
| broadband   | Communication   | .00 |     | 5 | 81 | 8 |     | 7 |
|             | Co., Ltd.       |     |     | 8 |    | 0 |     | 7 |
| service     |                 |     |     |   |    |   |     |   |
| structure   |                 |     |     |   |    |   |     |   |
+-------------+-----------------+-----+-----+---+----+---+-----+---+
|             | Data Network    |     | 16  | 0 | 7. | 0 | 1   | - |
|             | Solutions Co.,  |  49 | .18 | . | 36 | . | .58 |   |
|             | Ltd.            | .00 |     | 0 |    | 0 |     |   |
|             |                 |     |     | 2 |    | 1 |     |   |
+-------------+-----------------+-----+-----+---+----+---+-----+---+
|             | Data Linethai   |     | 1   | - | 1. | - | -   | - |
|             | Co., Ltd.       |  65 | .76 |   | 46 |   |     |   |
|             |                 | .00 |     |   |    |   |     |   |
+-------------+-----------------+-----+-----+---+----+---+-----+---+
| Sub-total   |                 |     | 557 | 0 | 73 | 0 | 840 | 0 |
|             |                 |     | .55 | . | 7. | . | .33 | . |
|             |                 |     |     | 6 | 63 | 8 |     | 7 |
|             |                 |     |     | 0 |    | 1 |     | 7 |
+-------------+-----------------+-----+-----+---+----+---+-----+---+
| Call center |                 |     |     |   |    |   |     |   |
| Service     |                 |     |     |   |    |   |     |   |
| structure   |                 |     |     |   |    |   |     |   |
+-------------+-----------------+-----+-----+---+----+---+-----+---+
|             | Advanced        |     | 4   | 0 | 6. | 0 | 4   | 0 |
|             | Contact Center  |  99 | .72 | . | 63 | . | .59 | . |
|             | Co., Ltd.       | .99 |     | 0 |    | 0 |     | 0 |
|             |                 |     |     | 1 |    | 1 |     | 1 |
+-------------+-----------------+-----+-----+---+----+---+-----+---+
| Sub-total   |                 |     | 4   | 0 | 6. | 0 | 4   | 0 |
|             |                 |     | .72 | . | 63 | . | .59 | . |
|             |                 |     |     | 0 |    | 0 |     | 0 |
|             |                 |     |     | 1 |    | 1 |     | 1 |
+-------------+-----------------+-----+-----+---+----+---+-----+---+
| Grand Total |                 |     | 92, | 1 | 9  | 1 | 1   | 1 |
|             |                 |     | 516 | 0 | 1, | 0 | 08, | 0 |
|             |                 |     | .65 | 0 | 42 | 0 | 454 | 0 |
|             |                 |     |     | . | 8. | . | .05 | . |
|             |                 |     |     | 0 | 16 | 0 |     | 0 |
|             |                 |     |     | 0 |    | 0 |     | 0 |
+-------------+-----------------+-----+-----+---+----+---+-----+---+

  Remark : 1) The Company has invested and held 99.99 % shares of
  Wireless Device Supply Co., Ltd in June 2007.

  2) AIN Globalcomm Co., Ltd. has been started its operation since
  December 2006 and also changed its name from AIS International Network
  Co., Ltd. in March 2007.

  3) Data Linethai Co., Ltd. is in the liquidation process.

4.  Business direction (3-5 years plan)

AIS has adopted a concept to be a Total Telecom Service provider,
expanding from previously providing mainly pure mobile telephone
services. Our services have expanded to include: international gateway,
international internet gateway, data services via a fixed line and
broadband for consumers. These are the businesses that AIS has been
awarded licenses for from the National Telecommunication Commission
(NTC) and will be the key focus areas for AIS in the next few years.

AIN GlobalComm Co., Ltd. (AIN) gradually introduced international
gateway services to AIS subscribers in 2007. The full impact will be
evident in 2008. The Super Broadband Network Co., Ltd. (SBN) will
integrate its data-focused fixed line network and the internet
international gateway to offer data transmission services to enterprise
customers. The majority of SBN implementation will occur during 2008-9.

In the next 3-5 years, AIS will tap into the growing high-speed data
communications market not only for mobile but also for laptops and
personal computers. In the short term, voice communications will be
maturing rapidly, especially in urban areas. On the other hand, data
communications by consumers are in the early stages. Mobile data usage
makes up 11% of service revenues while broadband connections, offered by
fixed line ADSL services, are in only about 1 million out of 16 million
households. AIS plans to exploit wireless technologies to capture the
data business opportunities. Depending on the maturity of technologies
and regulatory limits, 3G and WiMAX are likely to be adopted as the main
technologies.

As most countries around the world, including South East Asian
countries, have launched 3G service or issued 3G licenses, AIS expects
3G licenses to be awarded in Thailand in the near future. To AIS, moving
to 3G will: a) stimulate further data revenue growth, b) capture
opportunities in residential broadband and c) to help support the
business continuity for the next 20 years.

AIS Broadband services

3G will serve mobile users as well as stationary users (broadband in
homes).

Currently, AIS is able to offer data speeds of more than100kbps (average
user speed) because it introduced nation-wide EDGE services (Enhanced
Data Rate for GSM Evolution) in early 2007. Customer experience has
improved substantially since data speed increased three times from the
level provided by the GPRS (General Packet Radio Service).

Better experiences have led to high growth in data usage. AIS expects
higher speeds from 3G service (around 200kbps) to sustain high data
revenue growth in the longer term. Furthermore, AIS is likely to offer a
high speed service (around 1Mbps) utilizing HSPA (High Speed Packet
Access) technology in major cities. At this level of speed, the HSPA
service will be competitive with other fixed broadband services (such as
ADSL) offered to laptops and PCs in homes. The advantage of HSPA is that
its coverage is significantly larger than the fixed line service areas.

The 3G license will ensure business continuity for AIS. Currently, AIS’
contract with TOT to offer mobile service will end in 2015. The length
of the 3G license is likely to be 20 years as are the other three
licenses currently held by AIS.

WiMAX (Worldwide interoperability for Microwave Access) will allow for
high speed data connections under its wide coverage cell sites. WiMAX
can be used to offer service directly to stationary consumers using
wireless connections or act as a transmission to link mobile cell sites
with the mobile network. AIS can potentially build the WiMAX network
based on its wide-spread transmission network and mobile cell sites. In
the consumer market, WiMAX will allow AIS to wirelessly access homes to
provide broadband service without investing in building fixed
connections to homes. Fixed connections to homes might not be allowed by
regulators and would be more expensive than the wireless options.
Moreover, WiMAX might be exploited as a wireless transmission among
network facilities to allow faster and more flexible network
installation. However, the technology has not been proven in a business
environment. AIS will continue to monitor the progress and evaluate
options to utilize this technology against other options.