PSE Circular for Brokers No. 1802-99

July 21, 1999 PSE CIRCULAR FOR BROKERS NO. 1802-99 July 20, 1999 PHILIPPINE STOCK EXCHANGE 4/F Philippine Stock Exchange Centre Ortigas Center, Pasig City Attention: MS . RACQUEL R . ANGELES Assistant Disclosure Department Gentlemen : Enclosed please find an official statement issued by Globe Telecom this afternoon in response to reports that the National Telecommunications Commission has issued an Order in NTC Case No. 99-047. Very truly yours, (SGD.) ATTY. MA. CARIDAD D. GONZALES Vice-President Legal Services Division OFFICIAL STATEMENT Globe Telecom has yet to receive a copy of the alleged Order of the National Telecommunications Commission dated 19 July 1999 in NTC Case No. 99-047, Smart's complaint against Globe on SMS Interconnect. If and when it receives a copy of that Order, it will, as is unusual in cases like this, consider its various legal options in order to come up with an adequate response to the Order. Globe, however, maintains its position that SMS Interconnect with Smart requires that Smart formally sit down and negotiate with Globe in the manner prescribed by Executive Order 59. Such negotiations had hardly commenced when Smart precipitously and in bad faith filed the NTC complaint, thereby preventing a voluntary resolution of the matter outside of the courts. In response to reports that the alleged Order penalizes Globe and Smart for rendering text message services without authority, Globe also clarifies that it has and has always had the authority to conduct this service, as this was part of the GSM system services authorized by the NTC in the provisional authority dated September 30, 1993 in NTC Case NO. 92-449. Such a ruling, if in fact part of the alleged Order in NTC Case No. 99-047, would be improper as the authority of either party to render SMS was never an issue nor an incident in NTC Case No. 99-047. cdt (SGD.) RODOLFO A. SALALIMA Senior Vice-President Corporate and Regulatory Affairs GLOBE TELECOM