PSE Circular for Brokers No. 252-00

February 3, 2000 PSE CIRCULAR FOR BROKERS NO. 252-00 February 2, 2000 Philippine Stock Exchange Philippine Stock Exchange Centre Exchange Road, Ortigas Center Pasig City Attention : Ms . Luisa W . Buenaventura Supervisor, Disclosure Department Gentlemen: Enclosed please find an official statement released by Globe Telecom relative to its registration statement for its US $ 220 Million Notes due 2009 filed with the United States Securities and Exchange Commission. Thank you. Very truly yours, (SGD.) ATTY. MA. CARIDAD D. GONZALES Vice-President, Legal Services Division OFFICIAL STATEMENT On August 6, 1999, Globe Telecom, Inc. completed its offering of US $ 220 Million Notes due 2009. The offering was made under Rule 144A and Regulation S of the Securities Act of 1933. In connection with the offering, Globe undertook in a registration rights agreement to cause the registration of the notes with the US Securities and Exchange Commission (the "US SEC") and exchange the original notes issued for substantially identical notes registered with the US SEC (the "Exchange Offer"). Globe requires the approval of the US SEC before launching the Exchange Offer. Globe filed a registration statement with the US SEC on October 5, 1999 and has responded to comments from the US SEC in two subsequent amendments, the most recent one dated 13 January 2000. Under the registration rights agreement, the deadline for starting the exchange offer is February 2, 2000. Globe will proceed with the exchange offer once the US SEC has declared the registration statement to be effective. Thus, in accordance with the registration rights agreement, special additional interest shall accrue initially at 0.25% per annum on the original notes commencing on 03 February 2000 and until the Exchange Offer is consummated. It is anticipated that effectiveness will be declared after a definitive agreement among the parties regarding the potential combination of GLOBE TELECOM and ISLA Communications Corporation ('ISLACOM") will have been reached and the proposed combination can be properly reflected in the registration statement under the US SEC rules. As earlier disclosed, Globe Telecom's parent companies Ayala Corporation and Singapore Telecommunications Limited, and Deutsche Telekom AG, a principal stockholder of ISLACOM, continue to discuss a potential combination of Globe Telecom and ISLACOM. The parties have not yet reached or entered into any definitive agreement regarding the proposed combination. Globe does not expect the extra interest expense to have a material impact on its earnings. The incurrence of this additional interest will not result in any defaults under the terms of the notes or under any of Globe's other outstanding indebtedness. llcd