PSE Circular for Brokers No. 1785-99

July 20, 1999 PSE CIRCULAR FOR BROKERS NO. 1785-99 July 19, 1999 Philippine Stock Exchange 4th Floor PSE Center, Exchange Road Ortigas Center, Pasig City Attention: Ms . Eileen M . Lacorte Ms . Luisa W . Buenaventura Ladies and Gentlemen : We refer to your fax letter dated July 19, 1999 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 Philippine Long Distance Telephone Company ("PLDT") will take responsibility for Pilipino Telephone Corporation's ("Piltel") obligations if the latter's cash flow will be insufficient to service debts. cdt To our knowledge, certain material terms and conditions of the letter of support that PLDT will issue in connection with Piltel's debt restructuring plan are still under negotiation and have not been finalized. Further, the issuance and the terms of any such letter of support by PLDT will still be subject to certain prior approvals. With kindest regard s Very truly yours, (SGD.) MA. LOURDES C. RAUSA-CHAN Corporate Secretary