Globe Telecom Signs US$78.7M Term Loan Facility With Abn Amro Bank N.V. For Additional Nokia Equipment

October 13, 1999 PSE CIRCULAR FOR BROKERS NO. 2605-99 PRESS RELEASE GLOBE TELECOM SIGNS US$78.7M TERM LOAN FACILITY WITH ABN AMRO BANK N . V . FOR ADDITIONAL NOKIA EQUIPMENT GLOBE TELECOM and ABN AMRO Bank N.V. signed on 28 September 1999 a US$78.7 million term loan facility to finance the purchase of equipment and services from Nokia Telecommunications of Finland. The loan facility is partially guaranteed by Finnvera, the Export Credit Agency (ECA) of Finland, and by the Export Finance and Insurance Corporation (EFIC), the ECA of Australia. The loan also had funding participation from Nordic Investment Bank for US$20.0 million. The loan finances part of GLOBE TELECOM's P7.6 billion capital expenditure program for wider coverage, increased capacity and further improvements in the network quality of its fully digital cellular network. As of 30 September 1999, GLOBE TELECOM continues to extend its lead as the largest digital network with 503 cell sites on-air, with plans for a total of 700 by the next three months. GLOBE TELECOM Chief Financial Officer Gil B. Genio commented, "We are very pleased with the support given to the Company by ABN AMRO, who worked on the transaction very quickly given a very competitive telecommunications industry, and provided a bridge loan to fund the equipment delivery in the past several months. The participation of NIB, Finnvera and EFIC underscores their continued confidence and optimism with Philippine telecommunications, and with GLOBE TELECOM." GLOBE TELECOM is the country's fastest growing telecoms provider, the second largest CMTS operator, and the leader in digital cellular. As of 30 September 1999, GLOBE TELECOM had more than 630,000 active subscribers (in post-paid and prepaid) under its Globe Handyphone brand. Based on GSM or Global Standard for Mobile communications, Globe Handyphone has introduced innovative features such Text Messaging, Infotext and Handyphone Mobile Office. It also offers a wide array of features which include Caller ID, Voice Mail, Call Forwarding and data/fax capabilities. Globe Handyphone has the widest International roaming coverage unmatched by other carriers combined with 90 roaming partners across six continents and can be used in 42 countries including the USA, Japan and Canada. GLOBE TELECOM, a joint venture between Ayala Corporation and Singapore Telecom International, is a full-service telecommunications company offering cellular services through the Globe Handyphone brand, fixed line services through the Globelines brand, and international services through Globelink. GLOBE TELECOM also offers a variety of other services such as VSAT (Very Small Aperture Terminal), Inter-Exchange Carrier (IXC), International Private Leased (IPL) lines, Datafast Frame Relay and Value-Added Network (VANs) data services, and internet access through its Internet Service Provider (ISP) G-Net. Nokia is a global equipment supply leader in GSM technology and is the leader in wireless handsets. Nokia has been the major supplier to GLOBE TELECOM since the introduction of Globe Handyphone in 1994. prcd ABN AMRO Bank N.V. is the 3rd largest bank in Europe and 6th largest in the world in terms of assets. It is considered the leading bank in telecommunications financing in Asia and worldwide, with major financing transactions for the key telecom operators. In the Philippines, ABN AMRO Bank maintains an offshore banking unit and has recently launched ABN AMRO Savings Bank. With a 25 branch network across the country ABN AMRO Bank is the largest foreign bank in the country in terms of branch coverage.