PSE Circular for Brokers No. 1784-99

July 20, 1999 PSE CIRCULAR FOR BROKERS NO. 1784-99 July 19, 1999 Philippine Stock Exchange PSE Center, Exchange Road Ortigas Center, Pasig City Attention: Ms . Eileen M . Lacorte Ms . Luisa W . Buenaventura Listing and Disclosure Group Ladies and Gentlemen : We refer to your fax letter requesting for written confirmation/clarification on the news article captioned "PLDT takes responsibility for Piltel's cash obligations" published in the July 19, 1999 issue of the Business World, which reported that PLDT will take responsibility for Pilipino Telephone Corporation's ("Piltel") obligations if Piltel's cash flow will be insufficient to pay for its debts. We advise that certain material terms and conditions of the letter of support that will be issued by PLDT to Piltel's creditors in connection with Piltel's debt restructuring are still being negotiated and have not been finally agreed. Further, the issuance and terms of any such letter of support by PLDT will still be subject to certain prior approvals. Thus, it would be premature at this stage to state that PLDT will agree to take responsibility for Piltel's obligations if Piltel's cash flow will be insufficient to pay for its debts. With kindest regards Very truly yours, (SGD.) MA. LOURDES C. RAUSA-CHAN Corporate Secretary