Philippine Long Distance Telephone Company

November 4, 1998 PSE CIRCULAR FOR BROKERS NO. 2517-98 SUBJECT : Philippine Long Distance Telephone Company Philippine Long Distance Telephone Company ("TEL") clarified to the Exchange in the afternoon of November 3, 1998, a news article published in the October 30, 1998 issue of the Business World, which reported of the following: 1. negotiations for the entry of First Pacific Co. Ltd. In TEL have entered the final stages; 2. talks with American firm Southwestern Bell Communications were used as a "smokescreen" to the ongoing negotiations with First Pacific; and 3. President and CEO Mr. Antonio Cojuangco will no longer have any role in the company upon First Pacific's entry and will be replaced by Managing Director Manuel Pangilinan. TEL, in its letter, advised that: ". . . we have no basis or information to confirm or deny the veracity of the incidents mentioned in the subject news article. . ." cdt For your information. (SGD.) RAFAEL L. LLAVE Chief Operating Officer