PSE Circular for Brokers No. 321-99

February 23, 1999 PSE CIRCULAR FOR BROKERS NO. 321-99 FACSIMILE TRANSMISSION The information contained in this facsimile is intended for the named recipients only. It may contain and confidential information and if you are no the intended recipient, you must not copy, distribute or take any action in reliance on it. If you have received this facsimile in error, please notify us immediately by a collect telephone call to (632) 848-0114 and return the original to the sender by mail. We will reimburse you for the postage. cdlex IF YOU DO NOT RECEIVE ALL THE PAGES, PLEASE TELEPHONE OUR FAX DEPARTMENT AT (632) 848-0114 TO : Ms. Grace De Guia Assistant Manager, Disclosures Department Philippine Stock Exchange FAX. NO : 634-2051 FROM : Agustin Montilla IV DATE : 22 February 1999 RE : Pilipino Telephone Corporation TOTAL PAGES INCLUDING THIS PAGE: 1 In compliance with the disclosure requirements of the Exchange, the following statement has been prepared: As part of its ongoing discussions with its creditors, Pilipino Telephone Corporation (the "Company") and its creditors met on Friday afternoon 19 February 1999 at which meeting the Company presented various proposals for its business recovery and financial restructuring. The proposals will be taken into consideration by the steering committee formed by the Company's creditors who have agreed to continue discussion with the Company in order to arrive at an agreement with respect to resolving its outstanding debt obligations. At the meeting, the Company informed its creditors that it expects a substantial loss for the 1998 fiscal year. The Company likewise informed its creditors that the Company is working with its auditors toward the release of the Company's audited 1998 financial statements which is expected to occur before the end of March. LLpr