PSE Circular for Brokers No. 2078-99

August 20, 1999 PSE CIRCULAR FOR BROKERS NO. 2078-99 Philippine Stock Exchange Listing and Disclosure Group 4/F, Philippine Stock Exchange Center Exchange Road, Ortigas Center Pasig City Attention: Ms . Grace B . de Guia Disclosure Department Ladies and Gentlemen : We refer to your fax letter dated August 20, 1999 requesting for written confirmation/clarification on the news article captioned "PLDT supports for Piltel won't exceed $100M", published in the August 20 issue of the Business World which reported that Philippine Long Distance Telephone Company ("PLDT") President, Mr. Manuel V. Pangilinan, said the firm's financial-support for its subsidiary Pilipino Telephone Corporation's ("Piltel") will not exceed $100 Million. aisadc We advise that PLDT Piltel and Piltel's creditors have not yet finally agreed the nature and amount of support that PLDT will extend to Piltel. It is envisaged, however, that any form of financial support to Piltel will have to be capped and take into account PLDT's own contractual obligations. With kindest regards. Very truly yours, (SGD.) MA. LOURDES C. RAUSA-CHAN Corporate Secretary