PSE Circular for Brokers No. 2755-99

October 27, 1999 PSE CIRCULAR FOR BROKERS NO. 2755-99 PRESS RELEASE GLOBE TELECOM NET REVENUES NOW AT P6.5 BILLION: PROFITS UP TO P 651 MILLION GLOBE TELECOM today reported that its net income for the first nine months of 1999 jumped to P651 million, thanks to a surging market share in the mobile industry. This figure is 130 times the Company's profits from the first nine months of the previous year and 28 times last year's full year earnings. The quarter's net income at P 247 million, is also 34% higher than the second quarter of 1999. GLOBE TELECOM is currently the fastest growing telecommunications company in the Philippines. Net Operating Revenues, which is net of interconnection payments to other carriers, were at P6.5 billion in the first nine months of 1999, 75% better than the same period in 1998. The increase in Net Operating Revenues comes from taking a majority of the new subscribers in the industry this year. By September 30, GLOBE TELECOM had 638,000 subscribers in its GSM mobile service, close to triple the number of subscribers it had at the beginning of the year. "GLOBE TELECOM has been fortunate in having laid the groundwork for this year's results, thereby allowing the Company to significantly increase market share and increase revenues in a difficult and fiercely competitive market", says President and CEO Gerardo Ablaza, Jr. cdlex "While we are pleased at the financial and operating results of the Company, we are most thankful that majority of consumers continue to choose Globe. We believe that the strength of the brand and our continued efforts to add capacity, improve quality, and extend service offerings will continue to provide value to our customers", Mr. Ablaza added. During the third quarter, GLOBE TELECOM had issued a highly successful US$220 million bond that provided new funding for its expansion plans. The bonds were received well by international investors, who continue to be attracted to Philippine telecommunications. GLOBE TELECOM was also able to increase its share of international minutes. In the first nine months of 1999, Globe handled 225 million outgoing and incoming international minutes, the second largest volume among carriers. GLOBE TELECOM continues to offer value to Philippine consumers through its US$1 per minute flat rate price for outgoing international calls, and the US$0.50 per minute promotional off-peak rates, which have been major contributors to the increase in international traffic volumes. In fixed lines, the percentage of business subscribers increased to 22%, however the total number of fixed lines in service continues to be flat at about 139,000 subscribers. GLOBE TELECOM attributes this to continuing difficulties of residential subscribers in paying monthly bills, leading to disconnections. GLOBE TELECOM also attributes difficulties in attracting subscribers to its fixed line business to continuing interconnection difficulties with the dominant landline operator. GLOBE TELECOM's total assets increased to P35.3 billion with a healthy debt-to-equity ratio of 1.08. About GLOBE TELECOM GLOBE TELECOM is a full service telecommunications company offering fixed line services through the Globelines brand, cellular mobile telephone services through the Globe Handyphone brand, and international services through the Globelink brand. GLOBE TELECOM also offers a variety of data communication services including VSAT, international and domestic leased lines, frame relay and value added network services, and internet services through the G-Net ISP. GLOBE TELECOM is a publicly listed company controlled by two major shareholders, Ayala Corporation (approximately 44%) and Singapore Telecom International (approximately 39%).