PSE Circular for Brokers No. 1493-99

June 24, 1999 PSE CIRCULAR FOR BROKERS NO. 1493-99 June 24, 1999 Philippine Stock Exchange PSE Center, Exchange Road Ortigas Center, Pasig City Attention: Ms . Grace B . de Guia Listing and Disclosure Group Ladies and Gentlemen : We refer to your fax letter of even date requesting us to clarify the following news report published in the June 24 issue of the Business World: 1. Stock Rights Offering to raise $200 to $300 million as part of fund-raising program; 2. Drafting of another comfort letter to banks to ensure creditors of Piltel; 3. Completion of due diligence an Philippine Home Cable, Inc., in a few more weeks. On the first item, we advise that the Company may carry out a right issues or other fund raising exercises next year. On the second item, the Company recognizes that for any restructuring plan of Pilipino Telephone Corporation ("Piltel") to be successful, participation of PLDT will be necessary. As such, PLDT is currently in discussions with the creditor banks of Piltel regarding the comfort letter which PLDT may issue to said banks, provided that the restructuring plan agreed between Piltel and its creditor banks is acceptable to PLDT. cdlex On the last item, PLDT continues to explore opportunities that would enable it to become a full service provider of the voice, video and data requirements of its customers. Home Cable is one of the companies being preliminary looked at by PLDT. With kindest regards. Very truly yours, (SGD.) MA. LOURDES C. RAUSA-CHAN Corporate Secretary