PSE Circular for Brokers No. 310-99

February 22, 1999 PSE CIRCULAR FOR BROKERS NO. 310-99 February 19, 1999 PRESS RELEASE JAPAN'S NTT BOARD APPROVES INCREASED HOLDINGS IN SMART COMMUNICATION FROM 15% TO 37% Metro Pacific Corporation ("MPC") announced today that the Board of Directors of Nippon Telegraph & Telephone Corporation ("NTT") of Japan has formally approved the Proposed increase of their holdings in Smart Communications, Inc. ("Smart"), the Philippines leading cellular carrier, to approximately 37 per cent from 15 cent. NTT will pay approximately PhP 8.3 billion. (US$214 million),for a combination of new shares issued by Smart worth PhP 2.5 billion (US$65 million); and existing shares from MPC worth PhP 1.6 billion (US$42 million), and affiliates of First Pacific Company Limited ("FPC") worth PhP 4.2 billion (US$107 million). prLL The NTT purchase will reduce MPC's economic interest in Smart to 38 per cent from 52 per cent, and FPC's economic interest, held primarily through Philippine affiliates, to 18 per cent from 32 per cent. The transaction includes the principal shareholders (MPC, FPC and NTT) converting all outstanding bonds into new common shares, giving rise to a gain on dilution for MPC. As a result, MPC will record a one-time gain of approximately PhP2.8 billion (US$73.2 million) in 1999. Following the issuance of new shares to NTT, the transaction will increase Smart's market value from PhP 34.3 billion (US$880m) to PhP36.9 billion (US$945 million). For further information, please contact: Corazon P. Guidote Group VF Corporate Communications and Investor Relations Metro Pacific Corporation Telephone No.: 811-0367 Peter Lawrence Senior Financial & Commercial Adviser Smart Communications, Inc. Telephone No.: 511-3914