PSE Circular for Brokers No. 1710-99

July 13, 1999 PSE CIRCULAR FOR BROKERS NO. 1710-99 Philippine Stock Exchange PSE Center, Exchange Road Ortigas Center, Pasig City Attention: Ms . Grace de Guia Listing and Disclosure Group Ladies and Gentlemen : We refer to your fax letter requesting for written confirmation/clarification on the news article captioned "Creditors OK restructuring of Piltel's P34.9B in debts", published in the July 13, 1999 issue of the Philippine Daily Inquirer, which reported that the creditors of Pilipino Telephone Corporation ("Piltel") have agreed to restructure Piltel's debt even without PLDT's infusion of additional capital into Piltel. We advise that our subsidiary, Piltel, and its bank creditors have agreed in principle certain basic terms of Piltel's debt restructuring plan but are still in discussions regarding other material terms of such restructuring including the letter of support that will be provided by the Company. No final agreement has been signed by the parties and any such agreement will be subject to certain prior approvals. LLjur With kindest regards Very truly yours, (SGD.) MA. LOURDES C. RAUSA-CHAN Corporate Secretary