Pilipino Telephone Corporation

January 25, 1999 PSE CIRCULAR FOR BROKERS NO. 120-99 SUBJECT : Pilipino Telephone Corporation Pilipino Telephone Corporation ("PLTL") clarified to the Exchange a news article published in the January 22, 1999 issue of the Philippine Daily Inquirer which reported that the company's financial advisor, Lehman Brothers, had advised Philippine Long Distance Telephone Company's ("TEL") President and Chief Executive Officer, Manuel Pangilinan, that it would be better for the company to let PLTL collapse. PLTL, in a letter to the Exchange, explained that: ". . . We deny that Mr. Pangilinan had been so advised by Lehman Brothers. Lehman Brothers have been engaged by Pilipino Telephone Corporation ("Piltel") precisely for the purpose of assisting Piltel in pursuing discussions with its creditors to resolve its outstanding debt obligations as soon as practicable." For your information. (SGD.) JOSE LUIS U. YULO, JR. President and CEO