PSE Circular for Brokers No. 492-00

February 29, 2000 PSE CIRCULAR FOR BROKERS NO. 492-00 February 28, 2000 Disclosure Department Listing and Disclosure Group 4/F, Philippine Stock Exchange Center PSE Center, Exchange Road Ortigas Center, Pasig City Fax No: 6364-0809/634-2051 Attention: Ms. Grace B. De Guia Asst. Manager Gentlemen: With reference to your letter of today's date regarding "APC files P150-M suit vs. Ongpin Group", which we received at 9:57 a.m., we wish to inform you that, other than the news article, we have no information regarding this matter, since we have not received a copy of the alleged suit. In the meantime, we can categorically deny that PhilWeb.Com "illegally appropriated" PhilCom's internet business. PhilWeb.Com has a fully integrated internet business, including access, business solutions, e-commerce, distribution, and e-ventures. At no time did PhilCom ever have a business plan even approaching the scope of PhilWeb's. Moreover, PhilWeb's basic business is broadband internet access via satellite. At no time did PhilCom ever have a business or even a business plan based on broadband internet access via satellite. Moreover, Mr. Alex Villamar, formerly CEO of PhilCom, and now President of PhilWeb, resigned from PhilCom precisely because the new management at APC had no clue whatsoever regarding the internet business and, despite several proposals by Mr. Villamar to them, they rejected his proposals to get into the internet business. This fact is clearly pointed out in Mr. Villamar's resignation letter from PhilCom. Very truly yours, (SGD.) ANA MARIA A. KATIGBAK Officer-in-Charge