PSE Circular for Brokers No. 2079-98

September 7, 1998 PSE CIRCULAR FOR BROKERS NO. 2079-98 Philippine Stock Exchange PSE Center, Exchange Road Ortigas Center, Pasig City Attention: Disclosure Department Listings and Disclosure Group Gentlemen : In reply to your facsimile letter of September 4, 1998, we confirm the report in the article published in the Asian Wall Street Journal on the even date that the Board of Directors of our Company has adopted a shareholder rights plan that would enhance the value of the shares of the Company and deter coercive takeover tactics that will be prejudicial to the interests of our shareholders. We disclose further that on September 4, 1998, our Board of Directors approved the amendment of our By-laws to provide that notice of shareholder nominations of candidates for the election of directors and of shareholder proposals to be submitted to an annual meeting of shareholders shall be given not less than 60 days nor more than 90 days prior to the date of the annual meeting, and that certain information concerning each proposed nominee or proposal shall be provided. cdt The Board of Directors also approved the creation of a nominating committee, composed of the Chairman, President, Secretary and two directors appointed by the Board, for the purpose of determining the qualifications of any person nominated for election to the Board of Directors. The names of the nominees shall be submitted by the Secretary to the nominating committee at least 10 calendar days prior to the election of directors and only the nominees who meet the required qualifications as determined by a majority vote of the committee shall be considered for election. We regret the oversight in failing to timely inform the Philippine Stock Exchange of the said amendments to our By-laws. In our desire to immediately advise the PSE of the Shareholder Rights Plan, we overlooked our obligation to include in our advisory the subject amendments. Thank you for your kind attention and consideration. Very truly yours, PHILIPPINE LONG DISTANCE TELEPHONE COMPANY (SGD.) ENRIQUE D. PEREZ Secretary