PSE Circular for Brokers No. 2284-99

September 13, 1999 PSE CIRCULAR FOR BROKERS NO. 2284-99 Philippine Stock Exchange Inc . Listing and Disclosure Group 4th Floor, Philippine Stock Exchange Centre, Exchange Road, Ortigas Centre, Pasig City Attention: Ms . Grace B . De Guia Disclosure Department Ladies and Gentlemen: This refers to your fax letter of even date requesting clarification/confirmation on the news article entitled "SC asked to declare Marubeni owner of Piltel's Mindanao assets published in the September 13, 1999 issue of Business World. which reported that Marubeni Corporation is seeking the help of the Supreme Court to prevent creditors of Pilipino Telephone Corporation ("Piltel") from going after the latter's properties. prcd For backgrounder in June 22, 1999, the Regional Trial Court of Makati granted Piltel's Motion to Dismiss the petition for Declaratory Relief filed by Marubeni Corporation praying for judgment that it be declared as the sole and legal owner of materials, equipment and assets delivered to and installed in the project sites of Piltel's Mindanao E.O. 109 Project Marubeni Corporation filed a Motion for Reconsideration of the aforementioned June 22, 1999 decision which the Court denied in an order filed dated August 12, 1999. In this connection, we have been informed that Marubeni Corporation filed a Motion for Extension to file a Petition for Certiorari with the higher tribunal. It is Piltel's decision that Piltel does not own all of the assets erected under the BOT agreement with Marubeni Corporation because Piltel has not given Marubeni a certificate of substantial compliance. Under the BOT agreement, ownership of the assets does not pass until said certificate is issued. Thank you and kind regards. Very truly yours, (SGD.) MA. LOURDES C. RAUSA-CHAN Corporate Secretary