PSE Circular for Brokers No. 2092-98

September 8, 1998 PSE CIRCULAR FOR BROKERS NO. 2092-98 SECURITIES AND EXCHANGE COMMISSION Form 11-C METRO PACIFIC CORPORATION Current Report Pursuant to Section 11(c) of the Revised Securities Act ("RSA") and RSA Rule 11(a)-1(b)(3) Thereunder 1. Date of report 07 September 1998 2. SEC Identification Number 135748 3. BIR Tax Identification Number 470-000-130-700 4. Registrant Metro Pacific Corporation 5. Country of Incorporation Philippines 6. Industry Classification Code 7. Address of principal office 41-42 Floor, Rufino Pacific Tower Ayala Avenue Cor. Herrera Street Makati City P.O. Box 1957 Makati City 8. Registrant's telephone number (632) 8110338 9. The Registrant has not changed its corporate name, office address and fiscal year since its last report. 10. Securities registered pursuant to Sections 4 and 8 of the RSA Title of class Number of shares outstanding Common shares 4,692,459,913 *1 LTCPs P1,000,000,000 *2 STCPs P1,490,000,000 *2 11. Item number reporters herein: 9-Other items First Pacific's Smart to Construct Nationwide GSM Network in Philippines; Equipment Tender to be Awarded in October. SIGNATURES Pursuant to the requirements of the Revised Securities Act, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereto duly authorized. aisadc Metro Pacific Corporation By: (SGD.) CORAZON P. GUIDOTE Group Vice President Corporate Communications and Investor Relations 4th September 1998 FIRST PACIFIC'S SMART TO CONSTRUCT NATIONWIDE GSM NETWORK IN PHILIPPINES; EQUIPMENT TENDER TO BE AWARDED IN OCTOBER. First Pacific Company Limited announced today that Smart Communications, Inc. the Philippines' leading integrated telecoms provider, has decided to implement its plans to construct a nationwide GSM digital cellular service that will complement its existing analogue-based network. The new service will initially accommodate up to 100,000 subscribers and offer customers the ability to use the phones in a wide number of other countries that have GSM networks. It will also provide subscribers with new value-added capabilities such as text-messaging, which has proved highly popular in the Philippines. Smart has issued tenders for the supply of turnkey equipment for the project, and expects to award the contract in October. The cost will be financed through the issue of US$120 million of participating convertible bonds, external sources and Smart's own positive operating cash flows, which will also be used to cover the continued build-out of the company's fixed-line service. First Pacific is taking up US$98 million of the bonds, raising its effective economic interest in Smart to 23.6 per cent from 14.2 per cent, while Metro Pacific Corp.'s interest would decline to 45.7 per cent from 51.8 per cent. Japan's NTT Corp. is taking up the remaining US$22 million of the bonds, lifting its interest to 15.8 per cent from 15.0 per cent. Smart currently provides services to approximately 730,000 subscribers through its existing network, based on TACS technology, which represents more than half the nation's cellular market. It also has approximately 110,000 fixed-line subscribers, as well as an international long-distance service which logged approximately 6.5 million minutes of outgoing traffic last year. The company's after-tax profit rose 29.2 per cent in 1997 to US$17.7 million on turnover of US$227.4 million, up 70.5 per cent. First Pacific's Managing Director, Manuel V. Pangilinan, said: "Smart has consistently been among the Philippines' fastest-growing companies, with its cellular subscriber base growing nearly 150 percent in the last 18 months alone. By establishing its own digital network, Smart will ensure that it can tap into a wider customer base while adding a fuller range of services to those who require them. "From First Pacific's perspective, injecting funds directly into Smart allows us to participate more fully in the company's future revenue stream. It also enhances Smart's already formidable position as the Philippines' leading integrated company. "This funding commitment complements First Pacific's recent injection of equity into several other major affiliates, including Metro Pacific in the Philippines, Berli Jucker in Thailand and Darya-Varia in Indonesia. By using its balance sheet to strengthen these companies, First Pacific intends to enable these businesses to enhance their market position when the competition is at its most vulnerable," Mr Pangilinan concluded. LLphil For further information, please contact: Smart Communications, Inc. Mon Isberto Tel: (63-2)511 3101 Head, Public Relations First Pacific Company Limited Robert Sherbin Tel: (852)2842 4380 Group Vice President Corporate Communications First Pacific Company's information can also be accessed on: Web Site http://www.firstpacco.com http://www.irasia.com/listco/hk/firstpac E-mail [emailprotected] Footnotes *1 Reported by the stock transfer agent as of 31 July 1998 *2 As of 31 July 1998