October 5, 1999PSE CIRCULAR FOR BROKERS NO. 2510-99October 4, 1999

October 5, 1999 PSE CIRCULAR FOR BROKERS NO. 2510-99 October 4, 1999 Philippine Stock Exchange Center 4th Floor PSE Center, Exchange Road Ortigas Center, Pasig City Attention: Ms . Grace B . de Guia Assistant Manager, Disclosure Dept . Ladies and Gentlemen: We refer to our letter dated September 13, 1999 (the "Letter") clarifying the news article captioned "SC asked to declare Marubeni owner of Piltel's Mindanao assets" published in the September 13, 1999 issue of the Business World. For accuracy, we further clarity that the agreement of Pilipino Telephone Corporation (Piltel) with Marubeni Corporation in connection with Piltel's E.O. 109 Mindanao Project is a BT Agreement and not a BOT Agreement as inadvertently stated in the Letter. Also, under the BT Agreement, title to all of the assets installed under the BT Agreement passes to Piltel upon payment of the Purchase Price therefor. The Makati Regional Trial Court dismissed Marubeni's action for declaratory relief praying for judgment that it be declared as the sole and legal owner of the materials, equipment and assets delivered and installed in the project sites of Piltel's Mindanao E.O. 109 Project on the ground that the terms and conditions of the BT Agreement are clear requiring no judicial construction and the rights and duties of parties are spelled out clearly and without any ambiguity. Thank you. Very truly yours, (SGD.) MA. LOURDES C. RAUSA-CHAN Corporate Secretary