PSE Circular for Brokers No. 026-99

January 7, 1999 PSE CIRCULAR FOR BROKERS NO. 026-99 January 6, 1999 PHILIPPINE STOCK EXCHANGE PSE Center, Exchange Road Ortigas Center, Pasig City Attention: Disclosure Department Listing and Disclosure Group Gentlemen : In compliance with the disclosure requirements of the Exchange, we have prepared the following statement as a result of the meeting of the Board of Directors held today: "Pilipino Telephone Corporation (the "Company") is pleased to advise that Napoleon L. Nazareno has assumed his duties and offices as Chairman of the Board of Directors (the "Board") and Chief Executive Officer of the Company at the Board Meeting held on 6 January 1999 at the 9/F, Bankers' Centre, 6764 Ayala Avenue, Makati City. dctai At the said meeting, the Board directed the Company and its management to undertake a comprehensive and immediate review of its operational and financial position, including initiating discussions with its creditors and other relevant parties regarding the Company's ongoing business and debt repayment plans. To assist in this process, the Board approved the engagement of Lehman Brothers as financial advisor and appointed the law firms of Linklaters and Alliances and Romulo, Mabanta, Buenaventura, Sayoc and De Los Angeles as legal advisors to the Company, with immediate effect." Very truly yours, PILIPINO TELEPHONE CORPORATION By: (SGD.) MARIA LOURDES RAUSA-CHAN Corporate Secretary