PSE Circular for Brokers No. 2499-99

October 4, 1999 PSE CIRCULAR FOR BROKERS NO. 2499-99 Philippine Stock Exchange 4th Floor PSE Center, Exchange Road Ortigas Center, Pasig City Attention: Ms . Grace B . de Guia Asst . Manager, Disclosure Department Ladies and Gentlemen: We refer to your fax letter dated October 4, 1999 requesting for written confirmation/clarification on the news article captioned "Piltel, creditor banks set to sign debt pact Friday", published in the October 4, 1999 issue of the Business World which reported that Piltel and its creditor banks are set to sign on Friday a Memorandum of Understanding which would lead to the finalization of Piltel's debt restructuring scheme that would entail the eventual conversion of half of Piltel's loans into common shares of parent company, Philippine Long Distance Telephone Company. We advise that Piltel and its bank creditors are in the process of finalizing a Memorandum of Understanding ("MOU") relating to Piltel's debt restructuring and expect to sign such MOU as soon as possible. Among the terms being considered by the parties is a possible conversion of a portion of Piltel's bank loans to Piltel convertible securities exchangeable for PLDT convertible securities. We will timely inform you of the agreements reached by the parties as soon as they have been finalized and the MOU is signed. With kindest regards. prcd Very truly yours, (SGD.) MA. LOURDES C. RAUSA-CHAN Corporate Secretary