PSE Circular for Brokers No. 1711-99

July 13, 1999 PSE CIRCULAR FOR BROKERS NO. 1711-99 Philippine Stock Exchange 4th Floor PSE Center, Exchange Road Ortigas Center, Pasig City Attention: Ms . Grace de Guia Asst . Manager, Disclosure Dept . Ladies and Gentlemen : We refer to your fax letter dated July 13, 1999 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 if its parent company, Philippine Long Distance Telephone Company ("PLDT"), would not commit any amount for the needed capital infusion. We advise that Piltel and its bank creditors have agreed in principle certain 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 PLDT. No final agreement has been signed by the parties and any such agreement will be subject to certain prior approvals. cdll With kindest regards Very truly yours, (SGD.) MA. LOURDES C. RAUSA-CHAN Corporate Secretary