PSE Circular for Brokers No. 581-00

March 8, 2000 PSE CIRCULAR FOR BROKERS NO. 581-00 1. Date of Report : 07 March 2000 2. SEC Identification Number : AS092-000589 3. BIR Tax Identification No. : 001-817-292 4. Exact name of registrant as specified in its charter : MUSIC CORPORATION 5. Province, Country or other Jurisdiction on incorporation or organization : Canlubang, Laguna, Philippines 6. Industrial Classification Code : (SEC Use Only) 7. Address of Principal Office : Lot 8 Phase IIB, SEPZ I, Carmelray Industrial Park, Canlubang, Laguna 8. Registrant's telephone No., area code : (49) 549-1480 9. There have been no changes to our name, address and fiscal year, since our last report 10. Are any or all of these securities listed on the Philippine Stock Exchange. Yes [x] No [ ] All issued and outstanding securities are listed in the Philippine Stock Exchange. Part I Other Matters CISCO SYSTEMS AND MUSIC TELECOM IN LICENSING PACT March 2000, MUSIC Telecom, Inc. of Hackettstown, New Jersey today announced the signing of an agreement under which Cisco Systems will license MUSIC Telecom to exclusively manufacture and sell its Calista PBXmedia DAC 16 Family of telephony boards used to integrate with proprietary digital PBX's such as Nortel, Lucent, NEC, Siemens, Ericsson, and others. Cisco's Calista voice recording products provide the interface that allows call-recording companies to access the PBX. Customers who have a digital PBX or an ACD (Automatic Call Distributor) system and who need to monitor agent calls (e.g. stockbrokers, emergency services) must use a special call-recording system to do so. The 'voice' must be extracted from the phone system and presented to the call recording system in a standard format. Cisco's Calista PBXmedia DAC 16 outputs the voice in the call recording system's native digital format, simplifying the solution, providing higher quality recording and reducing the cost of the entire voice recording system. This product line is one of its kind in market Under the terms of the agreement MUSIC Telecom will pay Cisco a royalty on sales of the boards. These boards, which were launched late last year into the market are projected to generate sales in 2000 of between US$3M to US$5M. Mr. Moshe Tal, President of MUSIC Telecom stated that "we are delighted with this agreement and believe that Cisco's Calista boards, sold alongside our Network Telephony Integration (NTI) boards, represent a unique technology that will address the burgeoning call center/logging market." About MUSIC Corporation . MUSIC Corporation is a holding Company with investments in technology companies in the field of networking, telecommunications and the internet. MUSIC Corp. owns 96% of MUSIC Telecom, Inc. About MUSIC Telecom, Inc . MUSIC Telecom is a leader in providing voice and data solutions for the Computer Telephony Integration (CTI) and VoIP markets. MUSIC's state-of-the-art Digital Signal Processing (DSP) products are based on "open" standards-based platforms that provide the customer with significant price and performance benefits. MUSIC's products are used by OEM's, VAR's and system integrators. For more information on MUSIC Telecom, please visit www.musictelecom.com . MUSIC Telecom, Inc. has its primary place of business at Hackettstown, New Jersey, USA. SIGNATURES Pursuant to the requirements of Section 11 of the RSA and Section 141 of the Corporation Code, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in Canlubang, Laguna. MUSIC Corporation Issuer (SGD.) MITOS TANTUICO-ZSHORNACK VP for Corporate Affairs