TOTAL ACCESS COMMUNICATION PLC.
IR 021 /2008
May 30, 2008
Subject: The Entry into the Settlement and Release Agreement with Digital Phone Co., Ltd.
To: The Manager and President The Stock Exchange of Thailand
Total Access Communications Public Company Limited (the "Company") has amicably reached the settlement and release agreement (the "Agreement") with Digital Phone Co., Ltd. ("DPC"), a 98 per cent owned subsidiary of Advanced Info Service Public Company Limited, on 30 May 2008, for the amount of Baht 3,000,000,000.
The Agreement involves the disputes between the Company and DPC under the Agreement to Unwind the Service Provider Agreement dated 7 January 1997 and the Amendment to the Unwind Agreement dated 9 October 1998. The Company submitted three Statements of Claim against DPC with arbitral tribunals of the Thai Arbitration Institute, totaling US$ 122,864,094 plus interest, and obtained two (out of three) arbitral awards in favour of the Company in the aggregate amount of approximately US$ 84,739,932 plus interest at the rate of 9.5 per cent per annum from the default dates. Despite the arbitral awards, the Company is further required to institute legal proceedings before a Thai court in order to enforce the arbitral awards.
In light of the complexity of the disputes and the timing of the arbitration proceedings and court proceedings, the Company considers that it would be in the best interest of the Company to amicably reach the Agreement with DPC for the amount of Baht 3,000,000,000.
Please be informed accordingly.
(Mr. Premon Pinskul)
Deputy Chief Financial Officer
Total Access Communication Public Company Limited
Investor Relations: IR@dtac.co.th
Tel (66) 2 202-8882