PSE Circular for Brokers No. 2818-98

December 24, 1998 PSE CIRCULAR FOR BROKERS NO. 2818-98 December 23, 1998 Philippine Stock Exchange PSE Center, Exchange Road Ortigas Center, Pasig City Attention: Ms . Eileen M . Lacorte/Ms . Grace B . de Guia Ladies and Gentlemen: We refer to your fax message dated 23 December 1998 seeking clarification/verification and requiring a written disclosure of the subject matter of the news article "2 American firms to acquire 15% of PLDT", published in the 23 December 1998 issue of the Philippine Daily Inquirer. Kindly refer to the attached Press Release "PLDT-SBC deal not yet final" which clarifies the matter. Also, we advise that there are no negotiations ongoing with American Insurance Group regarding the acquisition of a stake in Philippine Long Distance Telephone Company. Please be assured that to the extent that there is any transaction in which the Company is involved that would require disclosure, the Company will accordingly advise the Exchange and the investing public at the appropriate time and in the appropriate manner. aisadc Very truly yours, (SGD.) MA. LOURDES C. RAUSA-CHAN Corporate Secretary PRESS RELEASE PLDT-SBC deal not yet final PLDT clarified reports which appeared in certain newspapers today (December 23) regarding its negotiations with SBC Communications Inc. "There is nothing firm or final yet," PLDT senior vice president Antonio R. Samson said. "The meeting set early next year with SBC will just be a 'continuation of a conversation' which started in early November with the SBC team that conducted a 'due diligence' look at PLDT." He said SBC's meeting with the new PLDT management scheduled early next year would serve as a venue to discuss developments which may be advantageous to the two companies." "The earlier newspaper reports might have given the impression that agreements are nearing finalization. At this time such a supposition is premature." Samson said.