PSE Circular for Brokers No. 154-99

January 28, 1999 PSE CIRCULAR FOR BROKERS NO. 154-99 January 27, 1999 Philippine Stock Exchange PSE Center, Exchange Road Ortigas Center, Pasig City Attention: Ms . Eileen M . Lacorte/Ms . Luisa W . Buenaventura Disclosure Department Ladies and Gentlemen : This is in response to your letter of 27th January 1999 seeking clarification regarding the newspaper article entitled "Banks Give PLDT, Metro until Friday for Piltel Guarantee" that appeared in today's issue of Malaya. Please be informed that Philippine Long Distance Telephone Co. ("PLDT") is aware of the issues arising from the significant level of. debt at, Pilipino Telephone Company("Piltel"). PLDT is also aware that the new management team of Piltel is in the midst of reviewing the operational, financial and legal position of Piltel, an effort of which we are fully supportive and of which Piltel's banks are being kept fully informed. cdlex Regarding the report that local banks require PLDT to guarantee Piltel's loans, we can confirm no such demand has been made. We are not in a position to comment in respect of Metro Pacific Corporation. As a significant shareholder in Piltel, PLDT remains concerned regarding the welfare of Piltel's creditors minority shareholders and employees. Despite the current difficulties, we believe it is in the interest of all parties to see Piltel's operations continue normally and for it to continue providing full service to its customers. With kindest regards. Very truly yours (SGD.) MA. LOURDES C. RAUSA-CHAN Corporate Secretary