PSE Circular for Brokers No. 487-00

February 28, 2000 PSE CIRCULAR FOR BROKERS NO. 487-00 February 28, 2000 Philippine Stock Exchange, Inc. Disclosure Department Listings and Disclosure Group 4th Floor, Philippine Stock Exchange Center PSE Center, Exchange Road Ortigas Centers Pasig City Attention: Ms. Grace B. de Guia Assistant Manager, Disclosure Dept. Gentlemen: We reply to your request for clarification on the news item on entitled "SMC to issue P2B in bonds" published in the February 24, 2000 issue of the Philippine Daily Inquirer. The Company has not yet issued P2 Billion worth of long term bonds, but is in the final stages of preparations for such an issuance. The issue will consist of two equal tranches with a 3 years and 5 years maturity. The 3-year tranche will carry a spread of 0.125% while the 5 year tranche will carry a spread of 0.1875% over the corresponding 3 to 5 years reference rates. The funds to be generated will be earmarked/served to finance the long term capital requirements of the Company. Very truly yours, (SGD.) FERDINAND K. CONSTANTINO Corporate Information Officer