Management Discussion and Analysis TRUE REPORTS 2011 FIRST QUARTER RESULTS: SOLID GROWTH IN BROADBAND AND TRUEMOVE NON-VOICE, WITH INCREASED TRUEVISIONS ADVERTISING REVENUE BANGKOK, May 13, 2011: True Corporation PLC (SET: TRUE) reported solid service revenue growth for the first quarter of 2011. The Company's wireless business group (comprising TrueMove, TrueMove H, and Hutch) benefited from the integration of Hutch businesses and strong growth in non-voice revenue. Consumer Broadband boosted revenue and net adds at TrueOnline, while advertising contributed to the yearly rise in TrueVisions' revenue. Consolidated 1Q11 service revenue excluding interconnection charges (IC) increased 6.6% Y-on-Y and 4.0% Q-on-Q to Baht 14.2 billion mainly on the integration of Hutch businesses. Strong growth in Broadband, non-voice and advertising revenues supported the Y-on-Y rise. EBITDA, however, declined 4.0% from a year ago to Baht 4.8 billion on higher network, selling and marketing expenses. Net income from ongoing operations (NIOGO) excluding deferred income tax decreased from the same period last year to Baht 12 million. The bottom line declined to a loss of Bt 293 mn mainly on a mark-to-market FX loss. True President and CEO Suphachai Chearavanont said, "The integration of Hutch businesses and solid growth at TrueVisions and TrueOnline resulted in strong Group service revenue performance, despite competition increasing the pressure on our profitability, especially in the wireless segment. "We expect these positive trends to continue. The recent soft commercial launch of 3G+ services by CAT Telecom with TrueMove H as a reseller will give us an opportunity to offer 3G services to consumers in Thailand. Not only will this development of wireless Broadband match the needs of subscribers, it will also contribute to sustainable economic growth for the country by bridging the digital divide, especially in rural areas," said Mr Suphachai. "Meanwhile, we maintained our position as Thailand's leading premium smartphone operator." "Furthermore, in March we launched a new Ultra hi-speed Internet service which delivers download speeds of 10-100 Mbps and enables more content, especially in HD format, to be delivered to subscribers by TrueVisions. This double-play network will be expanded to 1.5 million homes within 2011. We will continue to more innovative lifestyle services to subscribers throughout the year," said Mr Suphachai. TrueOnline continued its solid performance. First-quarter service revenue increased 4.1% Y-on-Y fuelled by growth in Broadband Internet and business data revenues, while the fixed-line decline continued to stabilize. Consumer Broadband revenue grew 6.0% Q-on-Q, 13.6% Y-on-Y as the standard 6 Mbps service continued to gather momentum and on the launch of the new Ultra hi-speed Internet service with speeds of 10-100 Mbps. Broadband net adds were 39,000 and TrueOnline's customer base increased to 1.2 million. The Wireless Business Group, which includes TrueMove, TrueMove H and Hutch, saw service revenue excluding IC increase by 11.5% Y-on-Y to Baht 6.8 billion in 1Q11. TrueMove service revenue excluding IC was stable Y-on-Y but grew 1.5% Q-on-Q as the non-voice and mobile data strategy continued to gather pace. Postpaid revenue at TrueMove increased 13.4% Y-on-Y mainly on continued growth in smartphone subscribers, while new promotions supported the quarterly recovery in the prepaid segment's daily average revenue. TrueMove non-voice revenue continued to grow rapidly, 12.3% Q-on-Q, 26.3% Y-on-Y due to increased mobile Internet usage and improved data network coverage. Wireless Group subscribers increased to 18.4 million with 552,000 net adds at TrueMove. At TrueVisions service revenue rose 4.5% Y-on-Y driven mainly by revenues from advertising, the Super Junior concert, and the Coffee Master reality TV program. Premium subscribers continued to increase from 4Q10 thanks to the Premiere League's popularity. Meanwhile, convergence promotions received a strong response from the mass market. Total subscribers rose to 1.7 million, up 77,000 from the same period last year. In March, True Group announced a recapitalization plan by way of a rights offering, to raise Baht 13.2 billion to primarily fund investment for the expansion of 3G reseller services under TrueMove H. True Group is pleased with its strong share-price performance since the announcement and expects shareholders to fully exercise their rights under the offer. True Group CFO Noppadol Dej-Udom said, "We remain committed to deleveraging and repaid Baht 1.7 billion of long-term debt in 1Q11 and saw Group net-debt-to-EBITDA lower to 3.2 times, excluding short-term loans for the acquisition of Hutch businesses in Thailand. Controlling costs and securing funding to support new business opportunities are key to our long-term financial stability." ______________________________________________________________________