Philippine Telegraph & Telephone Corporation

August 31, 1999 PSE CIRCULAR FOR BROKERS NO. 2168-99 SUBJECT : Philippine Telegraph & Telephone Corporation Philippine Telegraph & Telephone Corporation ("PTT") informed the Exchange, through SEC Form 11-C, that the company filed an Accomplishment Report 1st Quarter 1999 per its letter dated May 19, 1999 addressed to the National Telecommunications Commission (NTC) which showed compliance of 87.07%. PTT has installed a total of 261,220 lines (out of 300,000 lines mandated under RA 7925) consisting of 186,180 fixed wirelines, 51,514 MTP (Municipal Telephone Program) credits, and 23.526 PCO (Public Calling Office) credits in Region IV-A. Under the Provisional Authority (P.A.) granted by the NTC to PTT for Case No. 94-022 (the PT&T P.A. for Local Exchange Carrier or LEC service), the NTC has recognized PTT's MTP and PCO credits in its revised roll out program. Pursuant to the guidelines issued by the Department of Transportation and Communication (DOTC) dated September 19, 1996 regarding compliance levels, PTT has reached substantial compliance level on its mandate and should no longer be subject to penalties and/or sanctions. For your information. (SGD.) ATTY. RUBEN L. ALMADRO Officer-in-Charge