Philippine Long Distance Telephone Company

August 14, 1998 PSE CIRCULAR FOR BROKERS NO. 1899-98 SUBJECT : Philippine Long Distance Telephone Company This has reference to a news article captioned "PLDT to raise $250 million in new Eurodebt flotation" published in the August 12, 1998 issue of the Manila Bulletin. Philippine Long Distance Telephone Company ("TEL") confirmed to the Exchange, in a letter dated August 13, 1998, the said news article and explained that: "We confirm that by our letter, dated August 10, 1998, we informed the Securities and Exchange Commission (SEC) of our intention to issue debt securities of up to Two Hundred Fifty Million U.S. Dollars, or the equivalent in Euro, based on the applicable exchange rate or rates at the time of the sale, as shall be designated by our Company at the time of the sale. The debt securities will be issued in the international capital markets to partially finance the cost of our Company's on-going service improvement and expansion programs. Since the debt securities will be issued outside of the Philippines, we requested confirmation from the SEC that the issuance is not subject to the requirement of registration and/or licensing under the Revised Securities Act (RSA). Section 4 of the RSA requiring registration of securities applies only to securities for sale or distribution to the public within the Philippines." A copy of TEL's Request from Exemption from Registration is available for reference at the PSE Library and PSE-Plaza Administration Office. For your information. (SGD.) REYNOLD P. ONG Vice-President, Listings and Disclosure Group