Philippine Telegraph & Telephone Corporation

June 16, 1998 PSE CIRCULAR FOR BROKERS NO. 1331-98 SUBJECT : Philippine Telegraph & Telephone Corporation Philippine Telegraph & Telephone Corporation ("PTT") clarified to the Exchange, in a letter dated June 15, 1998, a news article published in the June 10, 1998 issue of the Philippine Daily Inquirer which reported of PTT's failure to install its landline commitments, and the possible imposition of sanctions by the National Telecommunications Commission (NTC). Non-compliance by telephone operators with landline obligations may be a cause for the cancellation of its license. PTT in said letter explained that: "To date, we have not received any response from NTC. Neither have we received any request for an explanation from the NTC regarding the matter, contrary to the news article. As we understand the NTC procedures, a conference is first called between said Office and the carrier concerned, after which the NTC will decide whether or not to issue a show-cause letter. Should such letter be issued, hearings will then be conducted in order to provide the carrier concerned an opportunity to be heard and present evidence, as required by due process. To date, PT& T has not been called for a conference." For your information. (SGD.) REYNOLD P. ONG Vice-President, Listings and Disclosure Group