Philippine Telegraph & Telephone Corporation

May 26, 1999 PSE CIRCULAR FOR BROKERS NO. 1211-99 SUBJECT : Philippine Telegraph & Telephone Corporation Philippine Telegraph & Telephone Corporation ("PTT") informed the Exchange in a letter dated May 24, 1999, that the Securities and Exchange Commission (SEC) approved on February 23, 1999 its Amended Articles of Incorporation, particularly the amendment to Article VII, reflecting the increase in its authorized capital stock from P1,500,000,000 . 00 , divided into P600,000,000.00 Class A shares, P400,000,000.00 Class B shares both with a par value of P1.00 per share and P500,000,000.00 Serial Cumulative Convertible Redeemable Preferred Stock with a par value of P10.00 per share, to P3,800,000,000 . 00 , divided into 1,500,000,000 shares of Common Stock with a par value of P1.00 per share and 230,000,000 Serial Cumulative Convertible Redeemable Preferred shares, with a par value of P10.00 per share. The declassification of PTT's shares will not be reflected in the computer system of the Exchange (electronic board and ticker) pending further advice from the company on the status of the conversion of its old certificates into new certificates reflecting the declassification. prLL For your information. (SGD.) JOSE LUIS U. YULO, JR. President and Chief Executive Officer