PSE Circular for Brokers No. 378-99

March 1, 1999 PSE CIRCULAR FOR BROKERS NO. 378-99 February 26, 1999 Philippine Stock Exchange 4/F Philippine Stock Exchange Center PSF Center, Exchange Road, Ortigas Center Pasig City Attention: Disclosure Department Listing and Disclosure Group Gentlemen : We wish to advise that the meeting of the Board of Directors of the Company held on February 26, 1999, the Board approved the creation of 360,000,000 shares of Series IV Redeemable Cumulative Non-Convertible Preferred Stock. cdll We enclose herewith the salient features of the terms and conditions of Series IV Redeemable Cumulative Non-Convertible Shares of Preferred Stock. Thank you. Philippine Long Distance Telephone Company MA. LOURDES C. RAUSA-CHAN Corporate Secretary Proposed Terms of Preferred Shares Issue : Non-Convertible Redeemable Cumulative Serial Preferred Shares Issuer : PLDT Number of Shares : 360,000,000 Par value : PHP10 per share Subscription payment Initial payment : At least 10% Balance : Upon call by the Board of Directors Preference : Preferred over Common Stock as to dividends and liquidation right Dividend Rate : 13.5% p.a., based on par value, or if not yet fully paid, the actual amount paid Dividend payments : Quarterly Redemption features : (a) Redeemable, at option of Issuer, in whole or in part at any time one year after subscription (b) Redemption price equal to par value, or, if shares not yet fully paid, the actual amount paid Conversion rights : None Voting rights : As expressly provided by law or the Articles of Incorporation