PSE Circular for Brokers No. 048-99

January 11, 1999 PSE CIRCULAR FOR BROKERS NO. 048-99 January 11, 1999 Disclosure Department Listings & Disclosure Group 4/F Philippine Stock Exchange Center PSC Center, Exchange Road Ortigas Center, Pasig City Attention: Mr . Reynard P . Hong Vice President, Listings & Disclosure Group RE : Pilipino Telephone Corporation Gentlemen : In compliance with the disclosure requirements of the Exchange, we have prepared the following statement: "Pilipino Telephone Corporation (the "Company") is currently on discussion with its creditors with regard the current and prospective status of its debt obligations. Some of these obligations have become due and the Company is actively pursuing discussions with its creditors in order to resolve its outstanding debt obligations as soon as practicable. In the meantime, the Company wishes to stress that it is able to continue its services to customers and clients and that operations remain normal." Very truly yours, PILIPINO TELEPHONE CORPORATION By: (SGD.) MA. LOURDES C. RAUSA-CHAN Corporate Secretary