PSE Circular for Brokers No. 2541-98

November 6, 1998 PSE CIRCULAR FOR BROKERS NO. 2541-98 November 5, 1998 PHILIPPINE STOCK EXCHANGE, INC . PSE Center, Exchange Road Ortigas Center Pasig City Gentlemen : This is in response to your letter requesting for a clarification on the article published in the Manila Times issue of November 03, 1998. Please be informed that PILTEL has always and is continuously operating its CMTS service on the frequencies assigned to it by the National Telecommunications Commission (NTC) in NTC Case No. 90-054. It is never the policy of PILTEL to use frequencies not assigned to it. With reference to the interference issues, similar incidents of the same nature have occurred in the past. An example is the interference/noise problem experienced by GLOBE Telecoms in Tarlac, allegedly caused by PILTEL. After a joint technical inspection of the facilities of both companies in said area, it was found out that it was not PILTEL causing the interference in GLOBE lines. PILTEL and GLOBE have a good working relationship these past years, that problems between the two (2) companies are discussed and settled amicably. In fact, both parties will be going to Cebu City next week to jointly inspect each others facilities, in order to thresh out any alleged interference as previously done in the past. While we acknowledge receiving a show cause order from the NTC office in Cebu regarding SMART Communications, Inc., complaint on the same issue, PILTEL is likewise conducting a parallel meeting with SMART, similar to that with GLOBE, in order to resolve the alleged problem. SMART is likewise participating in the joint inspection next week. PILTEL hereby reiterates that all its operations are done on legally assigned frequencies. We trust that we have clarified the matter for the benefit of the investing public. Truly yours, PILIPINO TELEPHONE CORPORATION By: (SGD.) RICHARD H. PRATTE VP-National Transmission & Carrier Relations