PSE Circular for Brokers No. 1245-99

May 28, 1999 PSE CIRCULAR FOR BROKERS NO. 1245-99 PRESS RELEASE PLDT and MCIWorldCom enter into new Multi-Year Accounting rate Agreement for Philippines US Telephone Traffic PLDT reported today that it has reached a new multi-year accounting rate agreement for telephone service between the Philippines and the United States. The new accounting rate agreement starts with a rate of US $0.57 per minute retroactive to April 1, 1999, according to Antonio R. Samson, PLDT Executive Vice President. After one year, the accounting rate will be reduced to US $0.46 per minute up to January 1, 2001 when the rate will already match the benchmark of US $0.38 per minute. Surcharges for operator assisted collect calls and Home Country Direct Calls remain unchanged. cdlex The benchmark rate and corresponding effectivity date was set by the Federal Communication Commission (FCC) of the United States in an earlier policy pronouncement. International telecommunications carriers settle their respective accounts using a settlement rate that is equivalent to 50% of the agreed accounting rate. At an accounting rate of US $0.57 per minute, the current settlement rate is US $0.285 per minute. These new rates will be applicable to all Philippine international carriers, including PLDT, with correspondent agreements with MCIWorldCom and other US carriers.