PSE Circular for Brokers No. 2928-99

November 16, 1999 PSE CIRCULAR FOR BROKERS NO. 2928-99 Philippine Stock Exchange 4th Floor PSE Center, Exchange Road Ortigas Center, Pasig City Attention: Ms . Grace B . de Guia Assistant Manager, Disclosure Dept. Ladies and Gentlemen : We refer to your fax letter dated November 16, 1999 requesting for written confirmation/clarification on the news article captioned "SC rejects Marubeni bid on Piltel Mindanao assets", published in the November 16, 1999 issue of the Business World which reported that the Supreme Court has dismissed the petition of a Japanese corporation to declare it as legal owner of materials and equipment used in establishing a $279.21-million local telephone exchange service for Pilipino Telephone Corporation ("Piltel") in Southern Mindanao. We advise that the Supreme Court in a resolution dated October 5, 1999 dismissed the petition for review on certiorari of the order, dated July 9, 1999, of the Regional Trial Court, Branch 150, Makati City, dismissing the petition for declaratory relief filed by Marubeni Corporation against Piltel. The Supreme Court resolution stated, in part, that since Marubeni Corporation admits in its Petition that the provisions of the Build-Transfer Agreement ("BTA") dated August 9, 1996 involving the installation of telephone lines in Mindanao are not in any way ambiguous, there is no necessity for an interpretation of said contract. Furthermore, the resolution stated that any judgment in the case cannot affect third parties, such as the creditors of Piltel. Under the BTA, Marubeni Corporation would retain ownership of the materials and equipment used in the installation of lines until full payment thereof. prcd With kindest regards. Very truly yours, (SGD.) MA. LOURDES C. RAUSA-CHAN Corporate Secretary