PSE Circular for Brokers No. 1266-99

June 1, 1999 PSE CIRCULAR FOR BROKERS NO. 1266-99 June 1, 1999 PHILIPPINE STOCK EXCHANGE, INC . PSE Center, Exchange Road Ortigas Center, Pasig City Attention: Ms . Grace B . De Guia Assistant Manager, Disclosure Department Ms . Raquel R . Angeles Assistant, Disclosure Department Gentlemen : This refers to the news articles captioned "Government sets takeover of defaulting DIGITEL" and "DIGITEL eyes foreign partner" published in today's issues of the Manila Standard and Manila Bulletin, respectively. Please be informed that DIGITEL does not have any knowledge nor has it been informed by DOTC that it is taking over the Government facilities presently being leased to DIGITEL. There is likewise no truth to the report that DIGITEL owes P2 Billion to DOTC and has not paid its obligations since 1993. The most recent payment made to DOTC was last April 1999 in the amount of P243 Million. Todate, DIGITEL has already paid in excess of P1.6 Billion to DOTC since 1993. On the second article, we would like to confirm that DIGITEL is interested to get into a cellular phone business to become a full telecom service provider. We also would like to clarify that DIGITEL at present is not formally negotiating with any Japanese or American partner for possible investment in DIGITEL. We trust that this clarification will rectify whatever mis-impression that the abovementioned news articles may have created. Thank you and best regards. Very truly yours, (SGD.) WILLIAM S. PAMINTUAN SVP-Legal Counsel