PSE Circular for Brokers No. 698-99

April 8, 1999 PSE CIRCULAR FOR BROKERS NO. 698-99 April 7, 1999 Philippine Stock Exchange 4/F Philippine Stock Exchange Center PSE Center, Exchange Road Ortigas Center, Pasig City Attention: Disclosure Department Listing and Disclosure Group Gentlemen : Enclosed is a copy of the press release that was issued today in connection with PLDT'S issuance of US$175 Million 10-Year Notes. LLpr Thank you. Very truly yours, PHILIPPINE LONG DISTANCE TELEPHONE COMPANY (SGD.) MA. LOURDES C. RAUSA-CHAN Corporate Secretary PRESS RELEASE PLDT 10-YEAR NOTE ISSUE INCREASED TO USD175 MILLION FOLLOWING STRONG INVESTOR DEMAND Manila, Wednesday, April 7, 1999 Philippines Philippine Long Distance Telephone Company ("PLDT") confirmed its reputation as one of Asia's premier corporate issuers yesterday by issuing an aggregate principal amount of $175 million of 10-year Notes as the drawdown under its $250 million Global Medium-Term Note Program established in September 1998. The PLDT Global Notes are rated Ba2 by Moody's Investors Service and BB+ by Standard & Poor's Ratings Services. The transaction was sole lead managed by Warburg Dillon Read LLC, a subsidiary of UBS AG. Anabelle Chua, Treasurer and First Vice President of PLDT commented, "We are very pleased with the outcome of this opportunistic financing, which was timed to take advantage of the stable market environment ahead of our strategic plans to raise additional equity for the company later this year." The Global Notes were priced at a final spread of 540 bps over the 10-year benchmark US Treasury bond with a semi-( illegible portion in Philippine Stock Exchange file) coupon of 10.5% to yield 10.557%. The transaction was launched at a size of $150 million with price talk of approximately 160 bps over the spread of the Republic of the Philippines ("RP") 8.875% Global Bond due 2008. While demand was initially driven by reverse inquiry from US based investors. strong market reception for this issue resulted in the transaction being significantly oversubscribed and subsequently increased to $175 million. The final distribution was weighted towards the US with some participation out of Europe and Asia. The quality of accounts was extremely high with representation from the major US insurance companies and asset managers. "The favorable pricing achieved on this issue, reflecting a modest 25 bps premium over PLDT's outstanding shorter maturity 2007 Bond, affirmed the company's credit quality and dominant market position as the Philippines' leading telecommunications carrier. This premium, adjusting for duration, was comparable to the execution on the successful RoP sovereign Bond issue earlier this year," explained Suneel Kamlani, Managing Director and Head of Debt Capital Markets Asia/Pacific. LLpr The strong spread performance of the RoP's outstanding Bonds and continuing investor appetite for Asian paper allowed PLDT to seize this market window to source attractive longer term financing. Proceeds from this issue will be used by PLDT in connection with its planned service improvements and expansion programs. Enquiries: Antonio R. Samson, Senior Vice President, Philippine Long Distance Telephone Company Tel. No. 632-816-8731:816-8770 Anabelle Lim-Chua, Treasurer and First Vice President, Philippine Long Distance Telephone Company Tel. No. 632-816-8213 Suneel Kamlani, Managing Director, Head of Debt Capital Markets Asia/Pacific, Warburg Dillon Read Tel. No. 852-2971-8739 Ines Noe, Director, Head of Dep't., Markets Asia/Pacific, Warburg Dillon Read Tel. No. 852-2971-8207