-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
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<SEC-DOCUMENT>0000078150-05-000031.txt : 20050630
<SEC-HEADER>0000078150-05-000031.hdr.sgml : 20050630
<ACCEPTANCE-DATETIME>20050630134413
ACCESSION NUMBER:		0000078150-05-000031
CONFORMED SUBMISSION TYPE:	20-F
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20041231
FILED AS OF DATE:		20050630
DATE AS OF CHANGE:		20050630

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PHILIPPINE LONG DISTANCE TELEPHONE CO
		CENTRAL INDEX KEY:			0000078150
		STANDARD INDUSTRIAL CLASSIFICATION:	TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		20-F
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-03006
		FILM NUMBER:		05927827

	BUSINESS ADDRESS:	
		STREET 1:		RAMON CONJUANGCO BLDG
		STREET 2:		MAKATI AVE
		CITY:			MAKATI METRO MANILA
		STATE:			R6
		ZIP:			0721
		BUSINESS PHONE:		0116328143552

	MAIL ADDRESS:	
		STREET 1:		RAMON CONJUANGCO BLDG
		STREET 2:		MAKATI AVE
		CITY:			MAKATI METRO MANILA
		STATE:			R6
		ZIP:			0721
</SEC-HEADER>
<DOCUMENT>
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<SEQUENCE>1
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p.MsoBodyText3, li.MsoBodyText3, div.MsoBodyText3
	{margin:0in;
	margin-bottom:.0001pt;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	font-style:italic;}
p.MsoBodyTextIndent2, li.MsoBodyTextIndent2, div.MsoBodyTextIndent2
	{margin:0in;
	margin-bottom:.0001pt;
	text-indent:.6in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.MsoBodyTextIndent3, li.MsoBodyTextIndent3, div.MsoBodyTextIndent3
	{margin:0in;
	margin-bottom:.0001pt;
	text-indent:.3in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.MsoBlockText, li.MsoBlockText, div.MsoBlockText
	{margin-top:0in;
	margin-right:6.5pt;
	margin-bottom:0in;
	margin-left:22.5pt;
	margin-bottom:.0001pt;
	text-indent:-22.5pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:9.0pt;
	font-family:"Times New Roman";
	font-style:italic;}
a:link, span.MsoHyperlink
	{color:blue;
	text-decoration:underline;}
a:visited, span.MsoHyperlinkFollowed
	{color:purple;
	text-decoration:underline;}
p.MsoDocumentMap, li.MsoDocumentMap, div.MsoDocumentMap
	{margin:0in;
	margin-bottom:.0001pt;
	background:navy;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:Tahoma;}
p.MsoAutoSig, li.MsoAutoSig, div.MsoAutoSig
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:12.0pt;
	font-family:"Times New Roman";}
p
	{margin-top:5.0pt;
	margin-right:0in;
	margin-bottom:5.0pt;
	margin-left:0in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:12.0pt;
	font-family:"Arial Unicode MS";}
p.MsoCommentSubject, li.MsoCommentSubject, div.MsoCommentSubject
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
span.DeltaViewChangeNumber
	{color:black;
	letter-spacing:0pt;
	vertical-align:super;}
span.DeltaViewDelimiter
	{letter-spacing:0pt;}
p.alpha2, li.alpha2, div.alpha2
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:62.35pt;
	text-align:justify;
	text-indent:-34.0pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Body, li.Body, div.Body
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:21.25pt;
	text-align:justify;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Bullet1, li.Bullet1, div.Bullet1
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:0in;
	text-align:justify;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Head, li.Head, div.Head
	{margin-top:14.75pt;
	margin-right:0in;
	margin-bottom:8.75pt;
	margin-left:21.25pt;
	text-align:justify;
	line-height:120%;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.TableText, li.TableText, div.TableText
	{margin-top:1.0pt;
	margin-right:0in;
	margin-bottom:1.0pt;
	margin-left:0in;
	text-align:justify;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Alpha3-a, li.Alpha3-a, div.Alpha3-a
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:92.15pt;
	text-align:justify;
	text-indent:-42.55pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Alpha4-a, li.Alpha4-a, div.Alpha4-a
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:113.4pt;
	text-align:justify;
	text-indent:-21.25pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Level4, li.Level4, div.Level4
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:3.0pt;
	margin-left:113.4pt;
	text-align:justify;
	text-indent:-21.25pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Level5, li.Level5, div.Level5
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:134.65pt;
	text-align:justify;
	text-indent:-21.25pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Head1, li.Head1, div.Head1
	{margin:0in;
	margin-bottom:.0001pt;
	text-align:center;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.Body1, li.Body1, div.Body1
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:21.25pt;
	text-align:justify;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Body2, li.Body2, div.Body2
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-align:justify;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Head3, li.Head3, div.Head3
	{margin:0in;
	margin-bottom:.0001pt;
	text-align:justify;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman Bold";
	font-weight:bold;}
p.Body3, li.Body3, div.Body3
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:92.15pt;
	text-align:justify;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Level1, li.Level1, div.Level1
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:21.25pt;
	text-align:justify;
	text-indent:-21.25pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Level2, li.Level2, div.Level2
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Level3, li.Level3, div.Level3
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:92.15pt;
	text-align:justify;
	text-indent:-42.55pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Level6, li.Level6, div.Level6
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:4.0pt;
	margin-left:155.95pt;
	text-align:justify;
	text-indent:-21.3pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Roman2-i, li.Roman2-i, div.Roman2-i
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Roman3-i, li.Roman3-i, div.Roman3-i
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:92.15pt;
	text-align:justify;
	text-indent:-42.55pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Roman4-i, li.Roman4-i, div.Roman4-i
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:113.4pt;
	text-align:justify;
	text-indent:-21.25pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Alpha3-A0, li.Alpha3-A0, div.Alpha3-A0
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:92.15pt;
	text-align:justify;
	text-indent:-42.55pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Alpha5-a, li.Alpha5-a, div.Alpha5-a
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:134.65pt;
	text-align:justify;
	text-indent:-21.25pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Alpha2-a, li.Alpha2-a, div.Alpha2-a
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Alpha2-A0, li.Alpha2-A0, div.Alpha2-A0
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Alpha2-abolditalic, li.Alpha2-abolditalic, div.Alpha2-abolditalic
	{margin-top:6.0pt;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-indent:-28.35pt;
	line-height:120%;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.5pt;
	font-family:"Times New Roman";
	font-weight:bold;
	font-style:italic;}
p.Alpha2-aitalic, li.Alpha2-aitalic, div.Alpha2-aitalic
	{margin-top:6.0pt;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";
	font-style:italic;}
p.Alpha2-Abolditalic0, li.Alpha2-Abolditalic0, div.Alpha2-Abolditalic0
	{margin-top:6.0pt;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-indent:-28.35pt;
	line-height:120%;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.5pt;
	font-family:"Times New Roman";
	font-weight:bold;
	font-style:italic;}
p.Alpha2-Abold, li.Alpha2-Abold, div.Alpha2-Abold
	{margin-top:6.0pt;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-indent:-28.35pt;
	line-height:120%;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.5pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.Alpha2-Aitalic0, li.Alpha2-Aitalic0, div.Alpha2-Aitalic0
	{margin-top:6.0pt;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";
	font-style:italic;}
p.Arabic2-1, li.Arabic2-1, div.Arabic2-1
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Arabic3-1, li.Arabic3-1, div.Arabic3-1
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:92.15pt;
	text-align:justify;
	text-indent:-42.55pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Arabic2-10, li.Arabic2-10, div.Arabic2-10
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Arabic3-10, li.Arabic3-10, div.Arabic3-10
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:92.15pt;
	text-align:justify;
	text-indent:-42.55pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Roman2-I0, li.Roman2-I0, div.Roman2-I0
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Roman2-I1, li.Roman2-I1, div.Roman2-I1
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Alpha2-abold0, li.Alpha2-abold0, div.Alpha2-abold0
	{margin-top:6.0pt;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-indent:-28.35pt;
	line-height:120%;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.5pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.Alpha1G-Aitalic, li.Alpha1G-Aitalic, div.Alpha1G-Aitalic
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:42.55pt;
	text-align:justify;
	text-indent:-42.55pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";
	font-style:italic;}
p.Head2, li.Head2, div.Head2
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman Bold";
	font-weight:bold;}
p.Arabic4-1, li.Arabic4-1, div.Arabic4-1
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:113.4pt;
	text-align:justify;
	text-indent:-21.25pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Arabic4-10, li.Arabic4-10, div.Arabic4-10
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:113.4pt;
	text-align:justify;
	text-indent:-21.25pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.alpha3, li.alpha3, div.alpha3
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:96.4pt;
	text-align:justify;
	text-indent:-34.05pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Bullet2, li.Bullet2, div.Bullet2
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:62.35pt;
	text-align:justify;
	text-indent:-34.0pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Bullet3, li.Bullet3, div.Bullet3
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:102.05pt;
	text-align:justify;
	text-indent:-39.7pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.CellBody, li.CellBody, div.CellBody
	{margin-top:2.0pt;
	margin-right:0in;
	margin-bottom:2.0pt;
	margin-left:0in;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Title10C, li.Title10C, div.Title10C
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	text-align:center;
	line-height:120%;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.CellHead, li.CellHead, div.CellHead
	{margin-top:2.0pt;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:0in;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
span.DeltaViewInsertion
	{font-weight:bold;
	text-decoration:underline;}
p.DoubleSpace, li.DoubleSpace, div.DoubleSpace
	{margin:0in;
	margin-bottom:.0001pt;
	line-height:200%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:12.0pt;
	font-family:"Times New Roman";}
span.DeltaViewDeletion
	{color:red;
	text-decoration:line-through;}
p.WGLAddressHeading, li.WGLAddressHeading, div.WGLAddressHeading
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.ListBullet2, li.ListBullet2, div.ListBullet2
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:.25in;
	text-align:justify;
	text-indent:-.25in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.table, li.table, div.table
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:4.0pt;
	margin-left:0in;
	line-height:14.0pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:8.0pt;
	font-family:Arial;}
p.Style1, li.Style1, div.Style1
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	text-transform:uppercase;}
p.DoubleScore, li.DoubleScore, div.DoubleScore
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	border:none;
	padding:0in;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.BodytextBold, li.BodytextBold, div.BodytextBold
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.TableHeading1, li.TableHeading1, div.TableHeading1
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:0in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:9.0pt;
	font-family:Arial;
	font-weight:bold;}
p.Address, li.Address, div.Address
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:1.0in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.BodyTextFirstInd2, li.BodyTextFirstInd2, div.BodyTextFirstInd2
	{margin:0in;
	margin-bottom:.0001pt;
	text-indent:1.0in;
	line-height:200%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.BodyTextHang, li.BodyTextHang, div.BodyTextHang
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:.5in;
	text-indent:-.5in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.BodyTextHang2, li.BodyTextHang2, div.BodyTextHang2
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:0in;
	margin-left:.5in;
	margin-bottom:.0001pt;
	text-indent:-.5in;
	line-height:200%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.Bullet, li.Bullet, div.Bullet
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:.25in;
	text-indent:-.25in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.CenterBold, li.CenterBold, div.CenterBold
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	text-align:center;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman Bold";
	font-weight:bold;}
p.CenterBoldScore, li.CenterBoldScore, div.CenterBoldScore
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	text-align:center;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman Bold";
	font-weight:bold;
	text-decoration:underline;}
p.CenterScore, li.CenterScore, div.CenterScore
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	text-align:center;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	text-decoration:underline;}
p.Heading, li.Heading, div.Heading
	{margin-top:6.0pt;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	text-align:center;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.LeftBold, li.LeftBold, div.LeftBold
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman Bold";}
p.LeftItalic, li.LeftItalic, div.LeftItalic
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:.25in;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";
	font-style:italic;}
p.LeftBoldItalic, li.LeftBoldItalic, div.LeftBoldItalic
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";
	font-style:italic;}
p.NotesSeparator, li.NotesSeparator, div.NotesSeparator
	{margin-top:0in;
	margin-right:5.5in;
	margin-bottom:0in;
	margin-left:0in;
	margin-bottom:.0001pt;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	border:none;
	padding:0in;
	font-size:6.0pt;
	font-family:"Times New Roman";}
p.Quote, li.Quote, div.Quote
	{margin-top:0in;
	margin-right:1.0in;
	margin-bottom:12.0pt;
	margin-left:1.0in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.Separator, li.Separator, div.Separator
	{margin-top:0in;
	margin-right:207.35pt;
	margin-bottom:3.0pt;
	margin-left:207.35pt;
	punctuation-wrap:simple;
	text-autospace:none;
	border:none;
	padding:0in;
	font-size:1.5pt;
	font-family:"Times New Roman";}
p.SingleScore, li.SingleScore, div.SingleScore
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	border:none;
	padding:0in;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.TableHead, li.TableHead, div.TableHead
	{margin:0in;
	margin-bottom:.0001pt;
	text-align:center;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:8.0pt;
	font-family:"Times New Roman Bold";
	font-weight:bold;}
p.TableNotes, li.TableNotes, div.TableNotes
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:.25in;
	text-indent:-.25in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:8.0pt;
	font-family:"Times New Roman";}
p.PageNum, li.PageNum, div.PageNum
	{margin:0in;
	margin-bottom:.0001pt;
	text-align:center;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.LeftScore, li.LeftScore, div.LeftScore
	{margin:0in;
	margin-bottom:.0001pt;
	line-height:200%;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	text-decoration:underline;}
p.text2, li.text2, div.text2
	{margin:0in;
	margin-bottom:.0001pt;
	text-indent:.5in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.Head10, li.Head10, div.Head10
	{margin:0in;
	margin-bottom:.0001pt;
	text-align:center;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman Bold";
	font-weight:bold;}
p.Head5, li.Head5, div.Head5
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	text-align:justify;
	line-height:13.0pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	font-style:italic;}
p.Bodytext, li.Bodytext, div.Bodytext
	{margin:0in;
	margin-bottom:.0001pt;
	text-indent:.25in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.alpha1, li.alpha1, div.alpha1
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:28.35pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Lista, li.Lista, div.Lista
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:.25in;
	text-indent:-.25in;
	punctuation-wrap:hanging;
	text-autospace:ideograph-numeric ideograph-other;
	font-size:12.0pt;
	font-family:"Times New Roman";}
p.Head4, li.Head4, div.Head4
	{margin:0in;
	margin-bottom:.0001pt;
	text-align:justify;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.Note-Head, li.Note-Head, div.Note-Head
	{margin-top:24.0pt;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:.25in;
	text-indent:-.25in;
	punctuation-wrap:hanging;
	text-autospace:ideograph-numeric ideograph-other;
	border:none;
	padding:0in;
	font-size:11.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.Note-BodyNo, li.Note-BodyNo, div.Note-BodyNo
	{margin-top:6.0pt;
	margin-right:0in;
	margin-bottom:3.0pt;
	margin-left:0in;
	text-align:justify;
	punctuation-wrap:hanging;
	text-autospace:ideograph-numeric ideograph-other;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.CaptionText, li.CaptionText, div.CaptionText
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	punctuation-wrap:hanging;
	text-autospace:ideograph-numeric ideograph-other;
	font-size:12.0pt;
	font-family:"Times New Roman";}
p.n, li.n, div.n
	{margin:0in;
	margin-bottom:.0001pt;
	text-indent:.5in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.SchedHead1, li.SchedHead1, div.SchedHead1
	{margin-top:7.0pt;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:28.35pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:Arial;
	font-weight:bold;}
p.23BodyText, li.23BodyText, div.23BodyText
	{margin-top:5.0pt;
	margin-right:0in;
	margin-bottom:0in;
	margin-left:0in;
	margin-bottom:.0001pt;
	text-align:justify;
	line-height:110%;
	punctuation-wrap:hanging;
	text-autospace:ideograph-numeric ideograph-other;
	font-size:10.0pt;
	font-family:Arial;
	color:black;}
p.alpha4, li.alpha4, div.alpha4
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:136.1pt;
	text-align:justify;
	text-indent:-34.05pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.alpha5, li.alpha5, div.alpha5
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:164.45pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.alpha6, li.alpha6, div.alpha6
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:198.45pt;
	text-align:justify;
	text-indent:-34.0pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Bullet4, li.Bullet4, div.Bullet4
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:136.05pt;
	text-align:justify;
	text-indent:-34.0pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Bullet5, li.Bullet5, div.Bullet5
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:164.45pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Bullet6, li.Bullet6, div.Bullet6
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:198.45pt;
	text-align:justify;
	text-indent:-34.0pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Parties, li.Parties, div.Parties
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:28.35pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Recitals, li.Recitals, div.Recitals
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:28.35pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.roman1, li.roman1, div.roman1
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:28.35pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.roman2, li.roman2, div.roman2
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:62.35pt;
	text-align:justify;
	text-indent:-34.0pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.roman3, li.roman3, div.roman3
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:102.05pt;
	text-align:justify;
	text-indent:-39.7pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.roman4, li.roman4, div.roman4
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:136.05pt;
	text-align:justify;
	text-indent:-34.0pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.roman5, li.roman5, div.roman5
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:164.45pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.roman6, li.roman6, div.roman6
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:198.45pt;
	text-align:justify;
	text-indent:-34.0pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Schedule1, li.Schedule1, div.Schedule1
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:28.35pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Schedule2, li.Schedule2, div.Schedule2
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:62.35pt;
	text-align:justify;
	text-indent:-34.0pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Schedule3, li.Schedule3, div.Schedule3
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:102.05pt;
	text-align:justify;
	text-indent:-39.7pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Schedule4, li.Schedule4, div.Schedule4
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:136.1pt;
	text-align:justify;
	text-indent:-34.05pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Body4, li.Body4, div.Body4
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:136.1pt;
	text-align:justify;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Schedule5, li.Schedule5, div.Schedule5
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:164.45pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Body5, li.Body5, div.Body5
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:164.45pt;
	text-align:justify;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Schedule6, li.Schedule6, div.Schedule6
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:198.45pt;
	text-align:justify;
	text-indent:-34.0pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Body6, li.Body6, div.Body6
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:198.45pt;
	text-align:justify;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.TCLevel1, li.TCLevel1, div.TCLevel1
	{margin-top:7.0pt;
	margin-right:0in;
	margin-bottom:0in;
	margin-left:28.35pt;
	margin-bottom:.0001pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;
	font-weight:bold;}
p.TCLevel2, li.TCLevel2, div.TCLevel2
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:62.35pt;
	text-align:justify;
	text-indent:-34.0pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.TCLevel3, li.TCLevel3, div.TCLevel3
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:102.05pt;
	text-align:justify;
	text-indent:-39.7pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.TCLevel4, li.TCLevel4, div.TCLevel4
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:136.05pt;
	text-align:justify;
	text-indent:-34.0pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.BulletF, li.BulletF, div.BulletF
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:0in;
	margin-left:70.9pt;
	margin-bottom:.0001pt;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Table1, li.Table1, div.Table1
	{margin-top:3.0pt;
	margin-right:0in;
	margin-bottom:3.0pt;
	margin-left:28.35pt;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
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</head>

<body style='font-family:arial,helvetica,sans-serif;font-size:9pt'  bgcolor=silver lang=EN-US link=blue vlink=purple>

<div>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</b></p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">Washington, DC 20549</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
normal' style="margin-top:0;margin-bottom:0">FORM 20-F</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:-.5in' style="margin-top:0;margin-bottom:0"><b>[  ]           </b><b>REGISTRATION STATEMENT PURSUANT TO SECTION 12(B) OF THE SECURITIES
EXCHANGE ACT OF 1934</b></p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>OR</b></p>

<p align=center style='text-align:center;line-height:50%' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-left:.5in;text-indent:-.5in' style="margin-top:0;margin-bottom:0"><b>[X]          ANNUAL REPORT PURSUANT TO SECTION 13 OR
15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 &#150; For the fiscal year ended
December 31, 2004</b></p>

<p style='margin-left:.5in;text-indent:-.5in;line-height:50%' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>OR</b></p>

<p style='margin-left:.5in;text-indent:-.5in;line-height:50%' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-left:.5in;text-indent:-.5in' style="margin-top:0;margin-bottom:0"><b>[  ]           TRANSITION REPORT PURSUANT TO SECTION
13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 &#150; For the transition period
from _________ to _________</b></p>

<p align=center style='margin-left:.5in;text-align:center;
text-indent:-.5in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p align=center style='margin-left:.5in;text-align:center;
text-indent:-.5in' style="margin-top:0;margin-bottom:0"><b>Commission file number
1-03006</b></p>

<p style='margin-left:.5in;text-indent:-.5in;line-height:50%' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Philippine Long Distance Telephone Company</b></p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(Exact name of Registrant as specified in its charter)</p>

<p style='margin-left:.5in;text-indent:-.5in;line-height:50%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Republic of the </b><b>Philippines</b></p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(Jurisdiction of incorporation or organization)</p>

<p style='margin-left:.5in;text-indent:-.5in;line-height:50%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Ramon</b><b> </b><b>Cojuangco</b><b>
 </b><b>Building</b></p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Makati Avenue</b></p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Makati City</b><b>,
 </b><b>Philippines</b></p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(Address of principal executive or organization)</p>

<p style='margin-left:.5in;text-indent:-.5in;line-height:50%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=center style='text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Securities registered or to be registered pursuant to
Section 12(b) of the Act.</p>

<p style='margin-left:.5in;text-indent:-.5in;line-height:50%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse;border-collapse:collapse !msorm'>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-bottom:3.0pt' style="margin-top:0;margin-bottom:0"><u>Title of each class</u></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Name of each exchange</p>
 <p align=center style='margin-bottom:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0">on which registered</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:3.0pt;
 margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Common
 Capital Stock, Par Value Five Philippine Pesos Per Share</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='margin-bottom:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0">New York Stock
 Exchange*</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:3.0pt;
 margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">American
 Depositary Shares, evidenced by American Depositary Receipts, each
 representing one share of Common Capital Stock</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='margin-bottom:3.0pt;text-align:center;
 line-height:9.0pt' style="margin-top:0;margin-bottom:0">New York Stock Exchange</p>
 <p align=center style='margin-bottom:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0">Archipelago Exchange</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:3.0pt;
 margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Series
 III Convertible Preferred Stock, Par Value Ten Philippine Pesos Per Share</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='margin-bottom:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0">New York Stock
 Exchange*</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:3.0pt;
 margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Global
 Depositary Shares, evidenced by Global Depositary Receipts, each representing
 one share of Series III Convertible Preferred Stock</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='margin-bottom:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0">New York Stock
 Exchange</p>
 </td>
 </tr>
</table></center></div>

<p style='line-height:3.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i>*    Registered on the New
York Stock Exchange not for trading but only in connection with the
registration of American Depositary Shares or Global Depositary Shares, as the
case may be, pursuant to the requirements of such stock exchange</i>.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">Securities registered or to be registered pursuant to
Section 12(g) of the Act.</p>

<p align=center style='text-align:center;line-height:50%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">None</p>

<p align=center style='text-align:center;line-height:50%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">Securities for which there is a reporting obligation
pursuant to Section 15(d) of the Act.</p>

<p style='margin-left:.5in;text-indent:-.5in;line-height:50%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align=center>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse;border-collapse:collapse !msorm'>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">9.875% Notes due 2005</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">10.500% Notes due 2009</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">9.250% Notes due 2006</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">11.375% Notes due 2012</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">7.850% Notes due 2007</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">8.350% Notes due 2017</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">10.625% Notes due 2007</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
</table></center></div>

</div>

<p style='text-indent:.5in;line-height:50%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Indicate the number of
outstanding shares of each of the issuer&#146;s classes of capital or common stock
as at the close of the period covered by the annual report.</p>

<p style='margin-left:.5in;text-indent:-.5in;line-height:50%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align=center>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse;border-collapse:collapse !msorm'>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">As at December 31, 2004:</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">170,213,722 shares of Common
 Capital Stock, Par Value Five Philippine Pesos Per Share</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">460,479,661 shares of Serial
 Preferred Stock, Par Value Ten Philippine Pesos Per Share</p>
 </td>
 </tr>
</table></center></div>

</div>

<p style='margin-left:.25in;line-height:50%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Indicate
by check mark whether the registrant (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days:  Yes [X]   No</p>

<p style='margin-left:.25in;line-height:50%' style="margin-top:0;margin-bottom:0"><u>&nbsp;</u></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Indicate
by check mark which financial statement item the registrant has elected to
follow:  Item 17    Item 18 [X]</p>

</div>

<br clear=all
style='page-break-before:always'>

<div>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">TABLE OF CONTENTS</h1>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0  style='width:475.3pt;margin-left:18.9pt;border-collapse:collapse;border-collapse:
 collapse !msorm'>

 <tr style='height:.2in' style='height:.2in !msorm'>
 <td  colspan=8 valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.2in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.2in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>

 <tr>
 <td  colspan=4 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">CERTAIN CONVENTIONS AND TERMS USED IN THIS REPORT</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  colspan=4 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">FORWARD-LOOKING STATEMENTS</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  colspan=4 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">PART I</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Item 1.</p>
 </td>
 <td  colspan=6 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Identity of Directors, Senior Management and Advisors</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Item 2.</p>
 </td>
 <td  colspan=6 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Offer Statistics and Expected Timetable</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Item 3.</p>
 </td>
 <td  colspan=6 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Key Information</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Selected Financial Data</p>
 </td>
 <td  colspan=3 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Capital Stock</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Dividends Declared</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Dividends Paid</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Exchange Rates</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Risk Factors</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Item 4.</p>
 </td>
 <td  colspan=6 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Information on the Company</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Overview</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Historical Background and Development</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Organization</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Strengths</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Strategy</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Wireless</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Fixed Line</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Information and Communications Technology</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Wireless Network Infrastructure</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Fixed Line Network Infrastructure</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Interconnection Agreements</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Licenses and Regulation</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Competition</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Environmental Matters</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Intellectual Property Rights</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Properties</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Item 5.</p>
 </td>
 <td  colspan=6 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Operating and Financial Review and Prospects</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Overview</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Critical Accounting Policies</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Results of Operations</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Liquidity and Capital Resources</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Impact of Inflation and Changing Prices</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Other Information</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Item 6.</p>
 </td>
 <td  colspan=6 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Directors, Senior Management and Employees</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Directors, Key Officers and Advisors</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Terms of Office</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Family Relationships</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Compensation of Key Management Personnel of the PLDT Group</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Executive Stock Option Plan</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Share Ownership</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Audit, Nomination, Executive Compensation and Finance
 Committees</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Employees and Labor Relations</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Pension and Retirement Benefits</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Legal Proceedings</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Item 7.</p>
 </td>
 <td  colspan=6 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Major Shareholders and Related Party Transactions</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Related Party Transactions</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Item 8.</p>
 </td>
 <td  colspan=6 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Financial Information</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Consolidated Statements and Other Financial Information</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Legal Proceedings</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Dividend Distribution Policy</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Item 9.</p>
 </td>
 <td  colspan=6 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">The Offer and Listing</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Common Capital Stock and Amercian Depositary Receipts
 (&#147;ADRs&#148;)</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Series III Convertible Preferred Stock and Global Depositary
 Receipts (&#147;GDRs&#148;)</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:.5in' style='height:.5in !msorm'>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.5in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.5in'>
 <p style="margin-top:0;margin-bottom:0">Item 10.</p>
 </td>
 <td  colspan=6 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.5in'>
 <p style="margin-top:0;margin-bottom:0">Additional Information</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.5in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Articles of Incorporation and By-Laws</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Material Contracts</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Exchange Controls and Other Limitations Affecting Securities
 Holders</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Taxation</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Documents on Display</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Item 11.</p>
 </td>
 <td  colspan=6 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Quantitative and Qualitative Disclosures About Market Risks</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Liquidity Risk Management</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Foreign Exchange Risk Management</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Interest Rate Risk Management</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Item 12.</p>
 </td>
 <td  colspan=6 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Description of Securities Other than Equity Securities</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  colspan=4 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">PART II</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Item 13.</p>
 </td>
 <td  colspan=6 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Defaults, Dividend Arrearages and Delinquencies</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Item 14.</p>
 </td>
 <td  colspan=6 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Material Modifications to the Rights of Security Holders and
 Use of Proceeds</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Item 15.</p>
 </td>
 <td  colspan=6 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Controls and Procedures</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Item 16A.</p>
 </td>
 <td  colspan=6 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Audit Committee Financial Expert</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Item 16B.</p>
 </td>
 <td  colspan=6 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Code of Business Conduct and Ethics</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Item 16C.</p>
 </td>
 <td  colspan=6 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Principal Accountant Fees and Services</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Item 16D.</p>
 </td>
 <td  colspan=6 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Exemption from the listing Standards for Audit Committees</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Item 16E.</p>
 </td>
 <td  colspan=6 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Purchases of Equity
 Securities by the Issuer and Affiliated Purchaser</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  colspan=4 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">PART III</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Item 17.</p>
 </td>
 <td  colspan=6 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Financial Statements</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Item 18.</p>
 </td>
 <td  colspan=6 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Financial Statements</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Item 19.</p>
 </td>
 <td  colspan=6 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Exhibits</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  colspan=4 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">EXHIBIT INDEX</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  colspan=4 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">CERTIFICATION</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr height=0>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<br clear=all
style='page-break-before:always'>

<div>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779184"></a><a name="_Toc46082243">CERTAIN CONVENTIONS AND TERMS USED IN THIS
REPORT</a></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Unless
the context indicates or otherwise requires, references to &#147;we,&#148; &#147;us,&#148; &#147;our&#148; or
&#147;PLDT Group&#148; mean Philippine Long Distance Telephone Company and its
consolidated subsidiaries, and references to &#147;PLDT&#148; mean Philippine Long Distance
Telephone Company, not including its consolidated subsidiaries (see <i>Note 2
&#150;Basis of Consolidated Financial Statemenst Preparation </i>to the accompanying
consolidated financial statements in Item 18 for a list of these subsidiaries,
including a description of their respective principal business activities).</p>

<p style='line-height:11.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Any
discrepancies in any table between totals and the sums of the amounts listed
are due to rounding.</p>

<p style='text-indent:.5in;line-height:11.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">All
references to the &#147;Philippines&#148; contained in this report mean the Republic of the Philippines
and all references to the &#147;U.S.&#148; or the &#147;United
 States&#148; are to the United States of America.</p>

<p style='text-indent:.5in;line-height:11.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
this report, unless otherwise specified or the context otherwise requires, all
references to &#147;pesos,&#148; &#147;Philippine peso&#148; or &#147;Php&#148; are to the lawful currency of
the Philippines, all references to &#147;dollars,&#148; &#147;U.S. dollars&#148; or &#147;US$&#148; are to
the lawful currency of the United States, all references to &#147;Japanese yen,&#148;
&#147;JP&yen;&#148; or &#147;&yen;&#148; are to the lawful currency of Japan, and all references to &#147;Euro&#148; or
&#147;&#128;&#148; are to the lawful currency of the European Union.  Unless otherwise
indicated, translations of peso amounts into U.S. dollars in this report were
made based on the volume weighted average exchange rate quoted through the
Philippine Dealing System, which was Php56.341 to US$1.00 on December 31, 2004.
On June 28, 2005, the volume weighted average exchange rate quoted was
Php55.579 to US$1.00.</p>

<p style='text-indent:.5in;line-height:11.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
this report, each reference to:</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
ACeS Philippines
means ACeS Philippines Cellular Satellite Corporation, our wholly-owned
subsidiary;</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
AIL means ACeS International
Limited;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
AMPS means advanced mobile phone
system;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;line-height:
94%' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
BCC or Bonifacio
Communications Corporation, our 75%-owned subsidiary;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
BSP means Bangko Sentral ng
Pilipinas;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
CDMA means code division multiple access;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Clark Telecom means PLDT Clark
Telecom, Inc., our wholly-owned subsidiary;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
DigiPar means Digital Paradise,
Inc., a 67.79%-owned subsidiary of ePLDT;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
ePLDT means ePLDT, Inc., our
wholly-owned subsidiary;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
ETACS means enhanced total access
communications system;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
First Pacific means First Pacific
Company Limited;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
GAAP means generally accepted
accounting principles;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
GSM means global system for mobile
communications;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
ISP means internet service
provider;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Infocom means Infocom
Technologies, Inc., a 99.6%-owned subsidiary of ePLDT;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mabuhay Satellite means Mabuhay
Satellite Corporation, our 67%-owned subsidiary;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Maratel means PLDT-Maratel, our
97.5%-owned subsidiary;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
NTC means the National
Telecommunications Commission of the Philippines;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
NTT Communications means NTT
Communications Corporation, a wholly-owned subsidiary of Nippon Telegraph and
Telephone Corporation of Japan;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
NTTC-UK means NTT Communications
Capital (UK) Ltd., a wholly-owned subsidiary of NTT Communications;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PAPTELCO means Philippine
Association of Private Telephone Companies;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Parlance means Parlance Systems,
Inc., a wholly-owned subsidiary of ePLDT;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Piltel means Pilipino Telephone
Corporation, an associate in which we have a 92.1% ownership interest and which
is treated as a consolidated subsidiary under U.S. GAAP; </p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PLDT Beneficial Trust Fund means
the beneficial trust fund created by PLDT to pay the benefits under the PLDT
Employees&#146; Benefit Plan;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PLDT Global means PLDT Global
Corporation, our wholly-owned subsidiary;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;line-height:
94%' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
SEC means the
Philippine Securities and Exchange Commission;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;line-height:
94%' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
SMS means short
message service;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Smart means Smart Communications,
Inc., our wholly-owned subsidiary;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subic Telecom means Subic
Telecommunications Company, Inc., our wholly-owned subsidiary;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Telesat means Telesat, Inc., our
94.4%-owned subsidiary;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Ventus means ePLDT Ventus, Inc., a
wholly-owned subsidiary of ePLDT;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Vocativ means Vocativ Systems,
Inc., a wholly-owned subsidiary of ePLDT; and</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
VSAT means very small aperture
terminal.</p>

<p style='text-indent:.5in;line-height:11.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779185"></a><a name="_Toc46082244">FORWARD-LOOKING STATEMENTS</a></p>

<p style='text-indent:.5in;line-height:11.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Some information in this report may contain
forward-looking statements within the meaning of Section 27A of the U.S.
Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of
1934.  We have based these forward-looking statements on our current beliefs,
expectations and intentions as to facts, actions and events that will or may
occur in the future.  Such statements generally are identified by
forward-looking words such as &#147;believe,&#148; &#147;plan,&#148; &#147;anticipate,&#148; &#147;continue,&#148;
&#147;estimate,&#148; &#147;expect,&#148; &#147;may,&#148; &#147;will&#148; or other similar words.</p>

<p style='text-indent:.5in;line-height:11.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">A
forward-looking statement may include a statement of the assumptions or bases
underlying the forward-looking statement.  We have chosen these assumptions or
bases in good faith, and we believe that they are reasonable in all material
respects.  However, we caution you that assumed facts or bases almost always
vary from actual results, and the differences between results implied by the
forward-looking statements, assumed facts or bases and actual results can be
material, depending on the circumstances.  When considering forward-looking
statements, you should keep in mind the description of risks and other
cautionary statements in this report.  You should also keep in mind that any
forward-looking statement made by us in this report or elsewhere speaks only as
at the date on which we made it.  New risks and uncertainties come up from time
to time, and it is impossible for us to predict these events or how they may
affect us.  We have no duty to, and do not intend to, update or revise the
statements in this report after the date hereof.  In light of these risks and
uncertainties, you should keep in mind that actual results may differ
materially from any forward-looking statement made in this report or elsewhere.</p>

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0"><a name="_Toc75779186"></a><a
name="_Toc46082245">&nbsp;</a></p>

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0">PART I</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779187"></a><a name="_Toc46082246">Item 1.        Identity of Directors, Senior
Management and Advisors</a></p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Not applicable.</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc75779188"></a><a
name="_Toc46082247">Item 2.        Offer
Statistics and Expected Timetable</a></p>

<p style='text-indent:.5in;line-height:9.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Not
applicable.</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779189"></a><a name="_Toc46082248">Item 3.        Key Information</a></p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0"><a name="_Toc75779190"></a><a
name="_Toc46082249">Selected
Financial Data</a></p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
selected consolidated financial information below should be read in conjunction
with, and is qualified in its entirety by reference to, our audited
consolidated financial statements, including the notes, included elsewhere in
this report.  The consolidated financial statements have been prepared and
presented in conformity with U.S. GAAP.</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Prior
to the filing of our Annual Report on Form 20-F in respect of the year ended
December 31, 2002, the consolidated financial statements included in our Annual
Reports on Form 20-F filed with the U.S. Securities and Exchange Commission, or
U.S. SEC, were prepared in conformity with Philippine GAAP.  Philippine GAAP
varies in certain significant respects from U.S. GAAP.  A description of the
significant differences between U.S. GAAP and Philippine GAAP and a quantitative
reconciliation of such differences in the net loss and stockholders&#146; equity to
U.S. GAAP was disclosed in a note to our previously filed consolidated
financial statements.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse'>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt !msorm;margin-left:8.0pt;
 text-indent:-8.0pt;line-height:97%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=11 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt;
 height:1.0pt'>
 <p align=center style='margin-right:8.65pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Consolidated Financial Data</b></p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt !msorm;margin-left:8.0pt;
 text-indent:-8.0pt;line-height:97%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=11 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt;
 height:1.0pt'>
 <p align=center style='margin-right:8.65pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>

 <tr style='height:1.0pt'>
 <td   colspan=2 valign=top style=' padding:0in 5.5pt 0in 5.5pt;
 height:1.0pt'>
 <p style='margin-left:8.0pt;text-indent:-8.0pt;line-height:
 97%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt;
 height:1.0pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:.35pt'>
 <p align=center style='margin-top:0in !msorm;margin-right:
 0in !msorm;margin-bottom:0in !msorm;;text-align:
 center;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </div>
 </td>
 <td   colspan=3 valign=top style=' padding:0in 5.5pt 0in 5.5pt;
 height:1.0pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:.35pt'>
 <p align=center style='margin-top:0in !msorm;margin-right:
 0in !msorm;margin-bottom:0in !msorm;;text-align:
 center;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2004</b>(1)</p>
 </div>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 5.5pt 0in 5.5pt;
 height:1.0pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:.35pt'>
 <p align=center style='margin-top:0in !msorm;margin-right:
 0in !msorm;margin-bottom:0in !msorm;;text-align:
 center;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2003</b>(2)</p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt;
 height:1.0pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:.35pt'>
 <p align=center style='margin-top:0in !msorm;margin-right:
 0in !msorm;margin-bottom:0in !msorm;;text-align:
 center;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2002</b>(2)</p>
 </div>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 5.5pt 0in 5.5pt;
 height:1.0pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:.35pt'>
 <p align=center style='margin-top:0in !msorm;margin-right:
 0in !msorm;margin-bottom:0in !msorm;;text-align:
 center;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2001</b>(2)</p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt;
 height:1.0pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:.35pt'>
 <p align=center style='margin-top:0in !msorm;margin-right:
 0in !msorm;margin-bottom:0in !msorm;;text-align:
 center;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2000</b>(2)</p>
 </div>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt;
 height:1.0pt'>
 <p style='margin-left:8.0pt;text-indent:-8.0pt;line-height:
 97%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=11 valign=top style=' padding:0in 5.5pt 0in 5.5pt;
 height:1.0pt'>
 <p align=center style='margin-left:8.0pt;text-align:center;
 text-indent:-8.0pt;line-height:97%' style="margin-top:0;margin-bottom:0"><b>(in millions, except operating income (loss) per share,
 earnings per common share, ratio of earnings to fixed charges and dividends
 declared per common share)</b></p>
 </td>
 </tr>

 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt !msorm;margin-left:8.0pt;
 text-indent:-8.0pt;line-height:97%' style="margin-top:0;margin-bottom:0"><i>Amounts in conformity with </i><i>U.S.</i><i> GAAP:</i></p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt !msorm;margin-left:8.0pt;
 text-indent:-8.0pt;line-height:97%' style="margin-top:0;margin-bottom:0"><b>Statements of Operating Data:</b></p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt !msorm;margin-left:8.0pt;
 text-indent:-8.0pt;line-height:97%' style="margin-top:0;margin-bottom:0">Operating Revenues </p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style=';margin-right:
 8.05pt;text-align:right' style="margin-top:0;margin-bottom:0">Php121,221</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style=';margin-right:
 7.5pt;text-align:right' style="margin-top:0;margin-bottom:0">US$2,151</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style=';margin-right:
 8.0pt;text-align:right' style="margin-top:0;margin-bottom:0">Php111,200</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:7.85pt;text-align:right' style="margin-top:0;margin-bottom:0">Php93,831</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style=';margin-right:
 7.5pt;text-align:right' style="margin-top:0;margin-bottom:0">Php80,294</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style=';margin-right:
 8.5pt;text-align:right' style="margin-top:0;margin-bottom:0">Php60,348</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt;text-indent:1.1pt;line-height:
 97%' style="margin-top:0;margin-bottom:0">Service</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">114,952</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">2,040</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">100,486</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">81,686</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">67,279</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">55,586</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt;text-indent:1.1pt;line-height:
 97%' style="margin-top:0;margin-bottom:0">Non-service</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">6,269</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">111</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">10,714</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">12,145</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">13,015</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">4,762</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt !msorm;margin-left:8.0pt;
 text-indent:-8.0pt;line-height:97%' style="margin-top:0;margin-bottom:0">Operating Expenses</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">72,682</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">1,290</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">77,821</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">81,802</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">88,288</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">49,824</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt !msorm;margin-left:8.0pt;
 text-indent:-8.0pt;line-height:97%' style="margin-top:0;margin-bottom:0">Operating Income </p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">48,539</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">861</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">33,379</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:.1in;text-align:right' style="margin-top:0;margin-bottom:0">12,029</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">(7,994)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style=';margin-right:
 8.5pt;text-align:right' style="margin-top:0;margin-bottom:0">10,524</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt !msorm;margin-left:8.0pt;
 text-indent:-8.0pt;line-height:97%' style="margin-top:0;margin-bottom:0">Operating income (loss) per share</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt;text-indent:1.0pt;line-height:
 97%' style="margin-top:0;margin-bottom:0">Basic</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">266.73</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">4.73</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">179.04</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">55.47</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">(59.52)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">58.82</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt;text-indent:1.0pt;line-height:
 97%' style="margin-top:0;margin-bottom:0">Diluted</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">252.20</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">4.48</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">165.37</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">52.23</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">(59.52)</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">58.82</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt !msorm;margin-left:8.0pt;
 text-indent:-8.0pt;line-height:97%' style="margin-top:0;margin-bottom:0">Net income (loss)</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">28,101</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">499</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">11,045</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">(6,158)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">(27,782)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">(29,258)</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt !msorm;margin-left:8.0pt;
 text-indent:-8.0pt;line-height:97%' style="margin-top:0;margin-bottom:0">Earnings per common share(3)</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt;text-indent:5.6pt;line-height:
 97%' style="margin-top:0;margin-bottom:0">Basic</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">146.32</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">2.60</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">47.20</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">(52.08)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">(176.85)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">(193.48)</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt;text-indent:5.6pt;line-height:
 97%' style="margin-top:0;margin-bottom:0">Diluted</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">145.30</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">2.58</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">45.72</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">(52.08)</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">(176.85)</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">(193.48)</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt !msorm;margin-left:8.0pt;
 text-indent:-8.0pt;line-height:97%' style="margin-top:0;margin-bottom:0"><b>Balance Sheets Data:</b></p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt !msorm;margin-left:8.0pt;
 text-indent:-8.0pt;line-height:97%' style="margin-top:0;margin-bottom:0">Cash and cash equivalents</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">27,321</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">485</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">19,372</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">10,974</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">4,276</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">9,674</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt !msorm;margin-left:8.0pt;
 text-indent:-8.0pt;line-height:97%' style="margin-top:0;margin-bottom:0">Total assets</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">279,639</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">4,963</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">276,364</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">269,387</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">284,877</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">326,153</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt !msorm;margin-left:8.0pt;
 text-indent:-8.0pt;line-height:97%' style="margin-top:0;margin-bottom:0">Total long-term debt - net of current portion</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">131,377</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">2,332</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">160,464</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">171,283</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">169,870</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">179,068</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt !msorm;margin-left:8.0pt;
 text-indent:-8.0pt;line-height:97%' style="margin-top:0;margin-bottom:0">Long-term debt</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">159,397</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">2,829</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">184,274</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">190,908</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">190,099</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">191,925</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt !msorm;margin-left:8.0pt;
 text-indent:-8.0pt;line-height:97%' style="margin-top:0;margin-bottom:0">Total debt(4)</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">159,455</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">2,830</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">186,407</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">191,668</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">196,561</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">196,042</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt !msorm;margin-left:8.0pt;
 text-indent:-8.0pt;line-height:97%' style="margin-top:0;margin-bottom:0">Total liabilities(5)</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">215,743</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">3,829</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">236,633</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">240,622</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">249,563</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">238,915</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt !msorm;margin-left:8.0pt;
 text-indent:-8.0pt;line-height:97%' style="margin-top:0;margin-bottom:0">Total stockholders&#146; equity</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">48,079</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">853</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">24,745</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">16,413</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">24,472</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">86,528</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt !msorm;margin-left:8.0pt;
 text-indent:-8.0pt;line-height:97%' style="margin-top:0;margin-bottom:0"><b>Other Data:</b></p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt !msorm;margin-left:8.0pt;
 text-indent:-8.0pt;line-height:97%' style="margin-top:0;margin-bottom:0">Depreciation and amortization </p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">20,098</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">357</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">21,812</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">17,566</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">16,218</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">12,756</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt !msorm;margin-left:8.0pt;
 text-indent:-8.0pt;line-height:97%' style="margin-top:0;margin-bottom:0">Ratio of earnings to fixed charges(6)</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">4.1x</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">4.1x</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">2.0</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt !msorm;margin-left:8.0pt;
 text-indent:-8.0pt;line-height:97%' style="margin-top:0;margin-bottom:0">Net cash provided by operating activities</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">Php62,860</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">Php1,116</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">Php42,582</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">Php39,722</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style=';margin-right:
 8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">Php20,113</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">Php20,727</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt !msorm;margin-left:8.0pt;
 text-indent:-8.0pt;line-height:97%' style="margin-top:0;margin-bottom:0">Net cash used in investing activities</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">24,764</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">440</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">20,021</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">17,167</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">29,376</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">25,183</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt !msorm;margin-left:8.0pt;
 text-indent:-8.0pt;line-height:97%' style="margin-top:0;margin-bottom:0">Net cash provided by (used in) financing activities</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">(30,078)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">(534)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">(14,135)</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">(15,954)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">3,841</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">5,511</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt !msorm;margin-left:8.0pt;
 text-indent:-8.0pt;line-height:97%' style="margin-top:0;margin-bottom:0">Dividends declared to common shareholders</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">202</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">752</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt !msorm;margin-left:8.0pt;
 text-indent:-8.0pt;line-height:97%' style="margin-top:0;margin-bottom:0">Dividends declared per common share(7)</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">1.20</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">4.80</p>
 </td>
 </tr>
 <tr height=0>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">_____________</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(1)&nbsp;&nbsp;
</i><i>  We maintain our accounts
in Philippine peso. For convenience, the peso financial information as at and
for the year ended December 31, 2004, has been translated into U.S. dollars at
the exchange rate of Php56.341 to US$1.00, the rate quoted through the
Philippine Dealing System as at December 31, 2004.  This translation should not
be construed as a representation that the Philippine peso amounts represent, or
have been or could be converted into, U.S. dollars at that rate or any other
rate.</i></p>

<p style='line-height:3.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(2)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>As reclassified to conform
with the 2004 presentation, see Note 26 &#150; Changes in Presentation of
Comparative Consolidated Financial Statements to the accompanying consolidated
financial statements in Item 18.</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(3)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>In 2002, 2001 and 2000 our
convertible preferred shares were deemed anti-dilutive based on a calculation
of the required dividends on preferred shares for each series of convertible
preferred shares divided by the number of equivalent common shares assuming
such preferred shares were converted into common shares and compared against
the basic earnings per share.  Since the amount of dividends on preferred
shares over the equivalent number of common shares were greater than the basic
earnings per share, the amounts for basic and diluted earnings per share are
the same.</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(4)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>Total debt represents
current portion of long-term debt, long-term debt&#151;net of current portion and
notes payable</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(5)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>Total liabilities on a
consolidated basis represent the difference between total assets and minority
interest in consolidated subsidiaries, preferred stock subject to mandatory
redemption and stockholders&#146; equity.</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(6)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>For purposes of this ratio,
&#147;Earnings&#148; consist of income before provision for income tax (excluding PLDT&#146;s
share in undistributed income of less than 50% owned affiliates) and fixed
charges (excluding capitalized interest).  &#147;Fixed charges&#148; consist of interest
(including capitalized interest, discounts and other financing costs) on all
indebtedness, amortization of deferred financing costs and the estimated
financing component of rent expense (i.e., one-third of rent expense).</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><i>Due
to PLDT&#146;s net losses in 2002, 2001 and 2000 the coverage ratio on a
consolidated basis was less than 1.0x in these years.  In order to achieve a
coverage ratio of 1.0x, we would have had to generate additional consolidated
earnings of Php2,4634 million, Php30,126 million and Php35,509 million for each
of the three years ended </i><i>December
 31, 2002</i><i>, 2001 and 2000,
respectively.</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(7)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>The most recent cash
dividend declaration made by PLDT on its common stock was on </i><i>May 5, 2005</i><i>
at Php21 per common share to holders of record as at </i><i>June 3, 2005</i><i>
payable on </i><i>July 14, 2005</i><i>.  On </i><i>March
 1, 2005</i><i>, PLDT declared a cash
dividend at Php14 per common share to holders of record as at </i><i>March 31, 2005</i><i>
which was paid on </i><i>May 12, 2005</i><i>.  This was the first cash dividend declaration to
common shareholders since March 2001.</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779191"></a><a name="_Toc46082250">Capital Stock</a></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The
following table summarizes PLDT&#146;s capital stock outstanding as at December 31, 2004,
2003 and 2002.</p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:94.18%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:11.25pt'>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:11.25pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=5 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:11.25pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.5pt'>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:10.5pt'>
 <p style="margin-top:0;margin-bottom:0">2004</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt;height:10.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;height:10.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt;height:10.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;height:10.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2002</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.15pt'>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:9.15pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:9.15pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>(in millions)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.55pt'>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:8.55pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Serial Preferred Stock</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:8.55pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:8.55pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:8.55pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:8.55pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:8.55pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.65pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt;height:7.65pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">10% Cumulative Convertible Preferred Stocks</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:7.65pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:7.65pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:7.65pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:7.65pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:7.65pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:.15in'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt;height:.15in'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">A
 to EE</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:.15in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php4,091</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:.15in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:.15in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php4,099</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:.15in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:.15in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php4,068</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.9pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:9.9pt'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">Series
 III</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:9.9pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">46</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:9.9pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:9.9pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">46</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:9.9pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:9.9pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">46</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p style='margin-left:27.0pt;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Convertible Preferred Stocks Subject to Mandatory
 Redemption</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p style='margin-left:27.0pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Series V(1)</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">22</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">26</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">25</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p style='margin-left:27.0pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Series VI(1)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">47</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">47</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">49</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.55pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt;height:8.55pt'>
 <p style='margin-left:27.0pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Series VII(1)</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:8.55pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">38</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:8.55pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:8.55pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">38</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:8.55pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:8.55pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">36</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.1pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:8.1pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Cumulative Non-convertible Redeemable Preferred Stock</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:8.1pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:8.1pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:8.1pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:8.1pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:8.1pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.25pt'>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:11.25pt'>
 <p style='margin-left:27.0pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Series IV</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 height:11.25pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">360</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:11.25pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 height:11.25pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">360</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:11.25pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 height:11.25pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">360</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.05pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:10.05pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:10.05pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php4,604</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.05pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:10.05pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php4,616</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.05pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:10.05pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php4,584</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:.15in'>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:.15in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Common Stock</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php851</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:.15in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php847</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:.15in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php847</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779192"></a><a name="_Toc46082251">___________</a></p>

<p style='margin-left:.25in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>(1)   Preferred stock subject to
mandatory redemption in 2008 and 2009 (see Note 14 &#150; Preferred Stock Subject to
Mandatory Redemption to the accompanying consolidated financial statements in
Item 18 for further discussion).</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Dividends Declared</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:94.18%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=5 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2002</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Cash dividends declared per share of
 PLDT&#146;s common stock, <br>
 in pesos (1)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:3.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.1pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:8.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php&#150;</p>
 </td>
 </tr>
</table></center></div>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">_____________</p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:2.0pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='line-height:2.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>(1)   The most recent cash dividend
declaration made by PLDT on its common stock was on May 5, 2005 at Php21 per
common share to holders of record as at June 3, 2005 payable on July 14, 2005.
On </i><i>March 1, 2005</i><i>, PLDT declared a cash dividend at Php14 per common
share to holders of record as at </i><i>March 31, 2005</i><i> which was paid on </i><i>May 12,
 2005</i><i>.  This was the first cash
dividend declaration to common shareholders since March 2001.</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779193"></a><a name="_Toc46082252">Dividends Paid</a></p>

<p style='text-indent:.5in;line-height:8.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">A
summary of dividends paid per share of PLDT's common stock stated in both
Philippine peso and U.S. dollars follows:</p>

<p style='text-indent:.5in;line-height:8.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse;width:100.0% !msorm;border-collapse:
 collapse !msorm'>
 <tr style='height:8.65pt' style='height:8.65pt !msorm'>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:8.65pt'><br
 clear=all style='page-break-before:always'>

 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:8.65pt'>
 <p align=center style=';;text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>In Philippine Peso</b></p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:8.65pt'>
 <p align=center style=';;text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>In U.S. Dollars</b></p>
 </td>
 </tr>
 <tr style='height:9.75pt' style='height:9.75pt !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:9.75pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2000</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:9.75pt'>
 <p align=center style=';;text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:9.75pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:9.75pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:8.65pt' style='height:8.65pt !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">January 14</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p align=center style=';;text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1.20</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">0.030</p>
 </td>
 </tr>
 <tr style='height:8.65pt' style='height:8.65pt !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">April 14</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p align=center style=';;text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1.20</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">0.029</p>
 </td>
 </tr>
 <tr style='height:8.65pt' style='height:8.65pt !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">July 15</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p align=center style=';;text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1.20</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">0.027</p>
 </td>
 </tr>
 <tr style='height:8.65pt' style='height:8.65pt !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">October 15</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p align=center style=';;text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1.20</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">0.025</p>
 </td>
 </tr>
 <tr style='height:8.65pt' style='height:8.65pt !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2001</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p align=center style=';;text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:8.65pt' style='height:8.65pt !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">January 15</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p align=center style=';;text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1.20</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">0.023</p>
 </td>
 </tr>
 <tr style='height:8.65pt' style='height:8.65pt !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">April
 16</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p align=center style=';;text-align:center' style="margin-top:0;margin-bottom:0">1.20</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:8.65pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">0.024</p>
 </td>
 </tr>
 <tr style='height:8.65pt' style='height:8.65pt !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2002</p>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p align=center style=';;text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='height:8.65pt' style='height:8.65pt !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p align=center style=';;text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='height:8.65pt' style='height:8.65pt !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2004</p>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p align=center style=';;text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='height:8.65pt' style='height:8.65pt !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2005 (through June 28, 2005)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p align=center style=';;text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0">14.00</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">0.248</p>
 </td>
 </tr>
 <tr style='height:8.65pt' style='height:8.65pt !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p style="margin-top:0;margin-bottom:0">___________</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p align=center style=';;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:8.65pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.65pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.5in;text-indent:-.5in' style="margin-top:0;margin-bottom:0">(<i>Note</i>:       <i>Dividends on PLDT's common stock
were declared and paid in Philippine peso.  For the convenience of the reader,
the peso dividends are translated into U.S. dollars based on exchange rates on
the respective dates of dividend payments.  Dividends paid in January of each
of the calendar years 2000-2001 were declared in the preceding December.
Accordingly, total amounts shown for cash dividends declared under &#147;Dividends Declared&#148;
above may differ from the amounts shown for cash dividends paid under
&#147;Dividends Paid.&#148;)</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779194"></a><a name="_Toc46082253">Exchange Rates</a></p>

<p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
Philippine government does not administratively fix the exchange rate between
the Philippine peso and the U.S. dollar.  Since August 1, 1992, a market
average rate has been determined daily in inter-bank trading using the
Philippine Dealing System, known as the &#147;Philippine Dealing System Reference
Rate.&#148;  The Philippine Dealing System is a specialized off-floor direct dealing
service for the trading of Philippine pesos-U.S. dollars by member banks of the
Bankers Association of the Philippines and BSP, the central bank of the Philippines.
All members of the Bankers Association of
the Philippines are required to make their Philippine peso-U.S.
dollar trades through this system, which was established by Telerate Financial
Information Network of Hong Kong.</p>

<p style='line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The
following shows the exchange rates between the Philippine peso and the U.S.
dollar, expressed in pesos per U.S. dollar, for the periods indicated, based on
the volume-weighted average exchange rate for each business day in each of the
periods presented:</p>

<p style='line-height:10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=7 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Year Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Period End</b></p>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Average(1)</b></p>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Low(2)</b></p>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>High(3)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2000</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php49.986</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php44.179</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php39.830</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php51.680</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2001</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">51.690</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">51.009</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">47.550</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">55.013</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">53.254</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">51.583</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">49.336</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">53.841</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">55.586</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">54.215</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">52.021</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">55.767</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style="margin-top:0;margin-bottom:0">2004</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">56.341</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">56.044</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">55.142</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">56.443</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style="margin-top:0;margin-bottom:0">2005 (through June 28, 2005)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">55.579</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">54.815</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">53.912</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">56.226</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">_____________</p>

<p style='line-height:50%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i>Source:  Philippine Dealing
System Reference Rate</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(1)   Simple average of exchange rates for the period.</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(2)   Lowest exchange rate for the period.</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(3)   Highest exchange rate for the period.</i></p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=7 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Month</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Period End</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Average(1)</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Low(2)</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>High(3)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">2004</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">December</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php56.341</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php56.044</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php55.142</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php56.443</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">2005</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">January</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">55.097</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">55.707</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">55.097</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">56.226</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">February</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">54.685</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">54.791</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">54.556</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">55.176</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">March</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">54.747</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">54.430</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">53.912</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">54.964</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">April
 </p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">54.332</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">54.472</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">54.053</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">54.902</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">May</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">54.489</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">54.349</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">53.976</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">54.706</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">June
 (through June 28, 2005)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">55.579</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">55.176</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">54.496</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">55.793</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">_____________</p>

<p style='line-height:50%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i>Source:  Philippine Dealing
System Reference Rate</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(1)   Simple average of exchange rates for the month.</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(2)   Lowest exchange rate for the month.</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(3)   Highest exchange rate for the month.</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">This report contains conversions
of Philippine peso amounts into U.S. dollars for your convenience.  Unless
otherwise specified, these conversions were made at the exchange rate as at December 31, 2004 of
Php56.341 to US$1.00.  You should not assume that such peso amounts represent
such U.S. dollar amounts or could have been or could be converted into U.S.
dollars at the rate indicated, or at any particular rate.  As at June 28, 2005, the
exchange rate quoted through the Philippine Dealing System was Php55.579 to
US$1.00.</p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0"><a
name="_Toc43040184">&nbsp;</a></p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779195"></a><a name="_Toc46082254"></a><a
name="_Toc42934525">Risk Factors</a></p>

<p style='line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Risks Relating to Us</i></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Our substantial indebtedness could impair our ability to fulfill our
financial obligations, service our other debt, carry out new financings or
incur capital expenditures</i></p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">We have substantial
indebtedness.  As at December 31, 2004, we had consolidated total indebtedness of
approximately Php159,455 million (US$2,830 million), including short-term debt
of approximately Php58 million (US$1 million) and a consolidated ratio of debt
to equity (total debt on a consolidated basis divided by total equity) of
3.32x.  Our consolidated ratio of earnings to fixed charges was less than the
minimum required ratio of 1.0x for the years ended December 31, 2002, 2001 and
2000.  For an explanation on how we calculate our consolidated ratio of
earnings to fixed charges, see footnote 6 to our consolidated financial data
table under &#147;Selected Financial Data&#148; and Exhibit 7 in &#147;Item 19.&#148;  Our existing
debt contains covenants which, among other things, require PLDT to maintain
certain financial ratios calculated on the basis of Philippine GAAP on a
consolidated and non-consolidated basis, limit our ability to incur
indebtedness, make investments, incur expenditures and pay dividends.
Financial statements prepared in conformity with Philippine GAAP differ in some
material respects from financial statements prepared in conformity with U.S.
GAAP.  For a description of some of these covenants, see &#147;Item 5.  Operating
and Financial Review and Prospects &#151; Liquidity and Capital Resources &#151;
Financing Activities &#151; Debt Financing &#151; Debt Covenants.&#148;</p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
substantial indebtedness and the requirements and limitations imposed by our
debt covenants could have important consequences.  For example, they could:</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
make it more difficult for us to
satisfy our debt obligations;</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
require us to dedicate a
substantial portion of our cash flow to payments on our indebtedness, thereby
reducing the availability of our cash flow to fund working capital, capital
expenditures and other general corporate requirements;</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
limit our ability to refinance our
debt obligations or incur new debt needed to finance our working capital,
capital expenditure or other requirements;</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
limit our flexibility in planning
for, or reacting to, changes in our business and the industry in which we
operate; </p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
limit our ability to incur capital
expenditures; and</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
place us at a competitive
disadvantage compared to our competitors.</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">If we are unable to meet our debt
service obligations or comply with our debt covenants, we could be forced to
restructure or refinance our indebtedness, seek additional equity capital or
sell assets.  An inability to effect these measures successfully could result
in a declaration of default and an acceleration of some or all of our
indebtedness.  Moreover, we expect that we will have difficulty meeting our
debt payment obligations if we do not continue to receive cash dividends from
Smart.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>We may not be able to maintain compliance with restrictive covenants
and ratios imposed by our indebtedness</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our
debt instruments contain restrictive covenants, including covenants that could
prohibit us from paying dividends on common stock under certain circumstances,
and require us to comply with specified financial ratios and other financial
tests, calculated on the basis of Philippine GAAP, at relevant measurement
dates, principally at the end of each quarterly period.  Financial statements
prepared in conformity with Philippine GAAP differ in some material respects
from financial statements prepared in conformity with U.S. GAAP.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The principal factors that can negatively affect our
ability to comply with these financial ratios and other financial tests are
depreciation of the peso relative to the U.S. dollar, poor operating
performance of PLDT and its consolidated subsidiaries, impairment or similar
charges in respect of investments or other long-lived assets that may be
recognized by PLDT and its consolidated subsidiaries and increases in our
interest expenses.  Since approximately 98% of our total consolidated debts are
denominated in foreign currencies, principally in U.S. dollars, many of these
financial ratios and other tests are negatively affected by any weakening of
the peso, which declined by approximately 3% against the U.S. dollar to an
average of Php56.044 to US$1.00 in 2004 from an average of Php54.215 to US$1.00
in 2003.  As at December 31, 2004, the exchange rate was Php56.341 to US$1.00,
equivalent to a 1% depreciation of the peso relative to the rate at the end of
2003.  In addition, certain of our financial ratios are adversely affected by
increases in interest expense, which may result from factors including issuance
of new debt, the refinancing of lower cost indebtedness by higher cost
indebtedness, depreciation of the peso, the lowering of PLDT's credit ratings
or the credit ratings of the Philippines, increase in reference interest rates,
and general market conditions.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">PLDT&#146;s
ability to maintain compliance with financial covenant requirements measured on
a non-consolidated basis is principally affected by the performance of our
fixed line business, which is predominantly conducted by PLDT.  PLDT cannot be
assured of the benefit of net revenues and cash flows generated by Smart and PLDT&#146;s other investees in
assisting in complying with non-consolidated covenants or covenants that are
calculated without giving effect to the results of PLDT&#146;s investees.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">We
have maintained compliance with all of our financial ratios and covenants as
measured under Philippine GAAP under our loan agreements and other debt
instruments.  However, if negative factors adversely affect our financial
ratios, we may be unable to maintain compliance with these ratios and covenants
or be unable to incur new debt.  Under some of our loan agreements, certain of
our financial ratios became more restrictive towards the end of 2004, and will
continue to become more restrictive in increments thereafter, which will make
it more difficult for PLDT to maintain compliance with such ratios in the
future.  Inability to comply with our financial ratios and covenants or raise
new financing could result in a declaration of default and acceleration of some
or all of our indebtedness.  The terms of some of our debt instruments have no
minimum amount for cross-default.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i>Creditors of our
subsidiaries will have superior claims to our subsidiaries&#146; cash flow and
assets</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">A growing portion of our
consolidated operating revenues and cash flow from operations is derived from
our subsidiaries, particularly Smart.  Smart and some of our other subsidiaries
have significant internal cash requirements for debt service, capital
expenditures and operating expenses and so may be financially unable to pay any
dividends to PLDT.  In addition, some of our subsidiaries are subject to
covenants that restrict them from distributing cash to PLDT except under
certain circumstances.  In particular, Smart is subject to loan covenants that
restrict its ability to distribute cash to PLDT.  Although Smart received
consents under its relevant loans that permitted it to make dividend payments
to PLDT in December 2002, June 2003, November 2003, May 2004 and December 2004,
we cannot assure you that PLDT will continue to receive dividends or other
distributions, or otherwise be able to derive liquidity from Smart or any other
subsidiary or investee in the future.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Creditors
of our subsidiaries will have prior claims to our subsidiaries&#146; assets and cash
flows.  We and our creditors will effectively be subordinated to the existing
and future indebtedness and other liabilities, including trade payables, of our
subsidiaries, except that we may be recognized as a creditor on loans we have
made to subsidiaries.  If we are recognized as a creditor of a subsidiary, our
claim will still be subordinated to any indebtedness secured by assets of the
subsidiary and any indebtedness of the subsidiary otherwise deemed senior to
indebtedness we hold.</p>

<p style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Our businesses require substantial capital investment, which we may not
be able to finance</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our projects under development and the continued
maintenance and improvement of our networks and services, including Smart&#146;s
projects, networks and services, require substantial ongoing capital
investment.  Our consolidated capital expenditures in 2004 and 2003 totaled
Php19,268 million and Php17,943 million, respectively.  Our 2005 budget for
consolidated capital expenditures is approximately Php18,000 million, of which
approximately Php8,000 million is budgeted to be spent by PLDT, approximately
Php9,000 million is budgeted to be spent by Smart and the balance represents
other subsidiaries&#146; capital spending.  PLDT&#146;s capital spending is intended
principally to finance the continued build-out of its data and internet
protocol infrastructures and for its fixed line data services and the
maintenance of its network.  Smart&#146;s capital spending is focused on expanding
and upgrading its transmission network facilities to meet increased demand for
cellular services.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Future
strategic initiatives could require us to incur significant additional capital
expenditures.  We may be required to finance a portion of our future capital expenditures
from external financing sources, which have not yet been fully arranged.  We
cannot assure you that financing for new projects will be available on terms
acceptable to us or at all.  If we cannot complete our development programs and
other capital projects, our growth, results of operations and financial
condition could be materially and adversely affected.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Our ability to raise new financing to fund our working capital, capital
expenditures and other needs depends on many factors beyond our control</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">We may require new external financing in order to fund
all of our operating, investment, capital expenditures and debt service
requirements.  Our ability to arrange for this and other financing and the cost
of such financing will be dependent on numerous factors outside of our control,
including:</p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
general economic and capital
market conditions, including the peso-to-U.S. dollar exchange rate;</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the availability of credit from
banks or other lenders;</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
investor confidence in us;</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
investor views about the Philippines;</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the continued success of our
business;</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
our credit ratings and the
sovereign credit ratings of the Philippines; and</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
provisions of tax and securities
laws that may be applicable to our efforts to raise capital.</p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Any
credit rating downgrades may significantly affect the availability and the
terms of our prospective financing, including financing costs.  In addition,
restrictions under our current indebtedness subject us to various financial
tests, which could prevent us from incurring additional debt.  Inability to
arrange such debt could materially and adversely affect our ability to fund our
anticipated operating, investment and capital expenditures as well as our
anticipated debt service requirements, and could result in defaults and cross-defaults
under our existing debt, thereby adversely affecting our results of operations
and financial condition.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i>If the peso depreciates
against the U.S. dollar, our financial position could be materially and
adversely affected</i></p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Substantially
all of our indebtedness and related interest expense, a substantial portion of
our capital expenditures and a portion of our operating expenses are
denominated in U.S. dollars and other foreign currencies, but a significant
portion of our revenues is denominated in pesos.  As at December 31, 2004,
approximately 98% of our total consolidated debts are denominated in U.S.
dollars and other foreign currencies.  A depreciation of the peso against the
U.S. dollar increases the amount of our debt obligations and operating and interest
expenses in peso terms.  In the event that the peso depreciates against the
U.S. dollar, we may be unable to generate enough funds through operations (such
as by raising our service rates, including through adjustments to rates for
local exchange service based on movements in the peso-to-dollar exchange rate)
and other means to offset the resulting increase in our obligations in peso
terms.  Further, these changes could cause us not to be in compliance with the
financial covenants imposed by our lenders under certain loan agreements and
other indebtedness.</p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">During the last decade, the
peso has generally depreciated against most foreign currencies.  In addition,
during this period, the Philippine economy has also, from time to time,
experienced periods of concentrated peso devaluation and limited availability
of foreign currency.  Since June 30, 1997, when the<i> </i>BSP announced that it would let
market forces determine the value of the peso, the peso has experienced a
significant decline against the U.S. dollar.  It depreciated from Php26.376 to
US$1.00 on June 30, 1997 to Php56.341 to US$1.00 as at December 31, 2004.
The peso declined by approximately 1% against the U.S. dollar to Php56.341 to
US$1.00 as at December 31, 2004 from Php55.586 to US$1.00 as at December 31,
2003.  The peso has also been subject to significant fluctuations.  For
example, during 2004 and 2003, the peso recovered to a high of Php52.021 to
US$1.00 on May 9, 2003 and depreciated to a low of Php56.443 to US$1.00 on October 14, 2004.
The peso may again be subject to significant fluctuations and may depreciate
due to a range of factors, including:</p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
political and economic
developments affecting the Philippines;</p>

<p style='margin-left:.75in;text-indent:-.25in;line-height:
7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the volatility of regional
currencies, particularly the Japanese yen;</p>

<p style='margin-left:.75in;text-indent:-.25in;line-height:
7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
any interest rate increases by
Federal Reserve Bank of the United States;</p>

<p style='margin-left:.75in;text-indent:-.25in;line-height:
7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
higher demand for U.S. dollars by
both banks and domestic businesses to service their maturing U.S. dollar
obligations; and</p>

<p style='margin-left:.75in;text-indent:-.25in;line-height:
7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
some banks covering their short
U.S. dollar positions.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Our results of operations have been, and may continue to be, adversely
affected by competition in international long distance service</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The
international long distance business was historically one of our major sources
of revenue.  However, due to competition and the steep decline in international
settlement rates that are paid to us by foreign telecommunications carriers for
termination of international calls on our network, revenues generated from our
international long distance business have overall declined in recent years.  </p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Although
revenue generated from our international long distance business increased in
2004 and 2003, primarily due to increased termination rates in 2004 and 2003,
we anticipate that revenues from international communications and information
services, including our services, will continue to decline in the future,
primarily due to:</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
installed and expanding fiber
networks and satellite capacities that provide substantially more transmission
capacity than may be needed in the short or medium term;</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
substantial increases in the
transmission capacity of new and existing networks, including those operated by
our competitors, due to recent technological advances;</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
advances in technology;</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
increased competition from other
domestic and international telecommunications providers;</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
alternative providers offering
internet telephony and broadband capacity; and</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
unauthorized traffic termination
and bypass routings by international simple resale operators.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
cannot assure you that these declines will not materially and adversely affect
our financial performance.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Net
settlement payments between PLDT and other foreign telecommunications carriers
for origination and termination of international call traffic between the Philippines
and other countries have been our predominant source of foreign currency
revenues.  However, in U.S. dollar terms, these payments have been declining in
recent years.  Continued decline in our foreign currency revenues could
increase our exposure to risks from declines in the value of the Philippine
peso against the U.S. dollar.  We cannot assure you that we will be able to
achieve adequate increases in our other revenues to make up for any adverse
impact of a further decline in our net settlement payments.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>We face strong competition and may need to increase our marketing
expenditures or reduce our rates in order to compete effectively</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">We
cannot assure you that the number of providers of cellular telecommunication
services will not increase or that competition for telecommunications customers
will not lead our cellular and fixed line subscribers to switch to other
operators or lead us to increase our marketing expenditures or reduce our
rates, resulting in a reduction in our profitability.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The Philippine government has
liberalized the Philippine telecommunications industry and opened up the
Philippine telecommunications market to new entrants.  Including us, there are
nine major local exchange carriers, 11 international gateway facility providers
and six cellular mobile telephone system providers in the Philippines,
including one which has not yet commenced operations.  Many new entrants into
the Philippine telecommunications market have entered into strategic alliances
with foreign telecommunications companies, which provide them access to
technological and funding support as well as service innovations and marketing
strategies.  Consequently, we are facing increasing competition in major
segments of the telecommunications industry, particularly cellular, fixed line
and data and other network services segments.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
cellular telecommunications industry in the Philippines has been particularly competitive, as operators have
sought to develop and maintain market shares and to attract new subscribers.
Our principal cellular competitor, Globe Telecom, Inc., or Globe, acquired
another telecommunications provider, Isla Communications Company, Inc., or
Islacom, on June 27, 2001, thereby strengthening Globe as a competitor.
Further consolidation in the industry could result in more vigorous
competition.  Digital Telecommunications Philippines, Inc., or Digitel, which
was awarded a license to operate cellular telecommunications services in 2000,
launched its cellular service, <i>Sun Cellular</i>, on March 29, 2003.  In
addition, the NTC has awarded a license to Bayan Telecommunications
Philippines, Inc., or BayanTel, to operate cellular telecommunications
services, but as of the filing of this annual report has not yet commenced
cellular operations.  The recent entry of Digitel has created and the recent
grant of a license to Bayantel is expected to create additional competition in
the industry.  In the future, the government may allocate further frequencies
and award additional cellular telecommunications licenses, which would further
increase competition.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Competitive pressures on our
cellular rates may affect our cellular revenues and revenue growth.  For
example, our prepaid subscribers can, using their existing handsets, switch to
one of our competitors by having their handsets &#147;unlocked&#148; from our service for
a fee and purchasing a new SIM card from the desired operator.  As a result of
competitive pressures, we have not increased our cellular rates to reflect
fluctuations in the peso to U.S. dollar exchange rate since November 1998.
Moreover, competitive pressures require us to continuously innovate our
products and to conduct promotions, which may affect our cellular revenues and
revenue growth.  For example, in order to test the market demand for fixed rate
or &#147;bucket&#148; plans for voice and text services and in response to similar types
of promotions launched by our competitors, we launched in March and April 2005
the <i>Smart 258</i> <i>Unlimited Call </i>and <i>Text</i>
promotions pursuant to which all Smart and <i>Talk &#145;N Text</i> prepaid
subscribers had the option to avail themselves of unlimited on-network
(Smart-to-Smart) voice calls or unlimited on-network (Smart-to-Smart) text
messages at a fixed rate.  We cannot assure you that incurring these marketing
expenses for these promotions and responding to rate pressures and the
potential loss of customers arising from increased competition will not have a
material adverse effect on our financial performance.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>If we are unable to install and maintain telecommunications facilities
and equipment in a timely manner, we may not be able to keep up with our
principal competitors, which may have negative implications for our revenue and
profitability</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Our business requires the regular
installation of new, and the maintenance of existing, telecommunications
transmission and other facilities and equipment.  The installation and
maintenance of these facilities and equipment are subject to risks and
uncertainties relating to:</p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
shortages of equipment, materials
and labor;</p>

<p style='margin-left:.75in;text-indent:-.25in;line-height:
7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
work stoppages and labor disputes;</p>

<p style='margin-left:.75in;text-indent:-.25in;line-height:
7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
interruptions resulting from
inclement weather and other natural disasters;</p>

<p style='margin-left:.75in;text-indent:-.25in;line-height:
7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
unforeseen engineering,
environmental and geological problems; and</p>

<p style='margin-left:.75in;text-indent:-.25in;line-height:
7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
unanticipated cost increases.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Any of these factors could give
rise to delays or cost overruns in the installation of new facilities or equipment
or could prevent us from properly maintaining the equipment used in our
networks, and could have a material adverse effect on our results of operations
and financial condition.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Rapid
changes in telecommunications technology may adversely affect the economics of
our existing businesses and the value of our assets, increase our required
capital expenditures and create new competition</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The telecommunications sector has
been characterized recently by rapid technological changes.  We cannot assure
you that these developments will not result in competition from providers of
new services or the need to make substantial capital expenditures to upgrade
our facilities.  For example, if third-generation, or 3G, cellular
services were introduced in the Philippines, we would likely incur significant expenses if we
were to roll out those services.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
future success will depend, in part, on our ability to anticipate or adapt to
such changes and to offer services that meet customer demands on a competitive
and timely basis.  We cannot assure you that we will be able to obtain new
technologies on a timely basis or on satisfactory terms or implement them in an
appropriate or effective manner.  Future development of new technologies,
services or standards could require significant changes to our business model
which could necessitate substantial new investments.  In addition, new products
and services may be expensive to develop and may result in increased
competition.  We cannot accurately predict how emerging and future
technological changes will affect our operations and financial results.
Furthermore, the development and introduction of new technologies by us or our
competitors may cause significant portions of our existing assets to become
obsolete and suffer an impairment in value earlier than their anticipated
useful lives and require us to accelerate their depreciation.  In 2001, we
recognized impairment charges in respect of Smart&#146;s analog assets and Smart&#146;s
unamortized intangible asset relating to analog customer lists.  Piltel
recognized impairment losses in respect of its AMPS/CDMA and Executive Order
No. 109, or E.O. 109 assets in 2001 and 2002, respectively.</p>

<p style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>The cellular telecommunications industry may not continue to grow or
may grow at a slower rate</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The majority of our consolidated operating revenues is
currently derived from our cellular services.  As a result, we depend on the
continued development and growth of the cellular telecommunications industry.
Growth of the cellular communications market depends on many factors beyond our
control, including the continued introduction of new and enhanced cellular
devices and consumer preferences.  Any economic, technological or other
developments resulting in a reduction in demand for cellular services may harm
our business.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Our businesses depend on the reliability of our network infrastructure,
which is subject to physical, technological and other risks</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">We depend to a significant degree on an uninterrupted
operation of our network to provide our services.  We also depend on robust
information technology systems to enable us to conduct our operations.  The
development and operation of our telecommunications networks are subject to
physical, technological and other risks, which may cause interruptions in service
or reduced capacity for customers.  These risks include:</p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
physical damage;</p>

<p style='margin-left:.75in;text-indent:-.25in;line-height:
7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
power loss;</p>

<p style='margin-left:.75in;text-indent:-.25in;line-height:
7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
capacity limitation;</p>

<p style='margin-left:.75in;text-indent:-.25in;line-height:
7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
equipment failure;</p>

<p style='margin-left:.75in;text-indent:-.25in;line-height:
7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
software defects; and</p>

<p style='margin-left:.75in;text-indent:-.25in;line-height:
7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
breaches of security by computer
viruses, break-ins or otherwise.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
occurrence of any of these risks could have a material adverse effect on our
ability to provide services to customers and our ability to attract and retain
subscribers, which could have a material adverse effect on our business.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Piltel
has experienced financial difficulties and we cannot assure you that it will be
able to discharge any of its debts or other obligations and that its creditors
will not take measures to enforce their claims </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;punctuation-wrap:hanging' style="margin-top:0;margin-bottom:0">Piltel has experienced significant financial
difficulties in recent years.  It has restructured substantially all of its
debts in accordance with its debt restructuring plan, which was signed on June 4, 2001.  While Smart acquired from Piltel&#146;s creditors
approximately US$289 million, or 69.4%, of Piltel&#146;s total outstanding
restructured debt at that time, in exchange for US$283.2 million, or Php15,854
million in July 2, 2004, in new debt of Smart and US$1.5 million, or Php84
million, in cash, in a debt exchange offer conducted by Smart in 2004, we cannot assure you that Piltel will be able to pay
the claims relating to its remaining restructured debt or to restructure or
otherwise pay the claims relating to its unrestructured debt or that Piltel
will have sufficient cash flow to meet its debt service and other payment
obligations.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As
at December 31, 2004, Piltel had an aggregate principal amount of Php52
million of unrestructured debt.  Piltel does not intend to make any payments in
respect of this debt unless and until it reaches a restructuring agreement with
the creditors holding the obligations.  If Piltel&#146;s non-participating creditors
take forceful measures to enforce their claims, it is possible that Piltel
would be required to submit itself to a court-supervised rehabilitation
proceeding or an involuntary insolvency proceeding seeking liquidation.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>The franchise of Smart may be revoked due to its failure to conduct a
public offering of its shares by August 2004 </i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Smart has publicly stated that it believes
that it had ten years from the commencement of its operations, or until August
2004, to conduct a public offering of its shares required under the Public
Telecommunications Policy Act, or R.A. No. 7925.  As Smart has not conducted a public offering of its shares, the Philippine
Congress may revoke the franchise of Smart for its failure
to comply with the requirement under R.A. No. 7925 on the public offering of
its shares.  Moreover, a <i>quo warranto</i> case may be filed against Smart by
the Office of the Solicitor General of the Philippines for the revocation of the franchise of Smart on the
ground of violation of R.A. No. 7925.  A bill is currently pending in the Philippine Senate,
pursuant to which a telecommunications entity shall be deemed to have complied
with the requirement of making a public offering of its shares if two-thirds of
its outstanding voting shares are owned and controlled, directly or indirectly,
by a listed company.  However, we cannot assure you that such bill will be
enacted and that the franchise of Smart will not be revoked due to Smart&#146;s
failure to timely conduct a public offering of its shares.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>A significant number of PLDT&#146;s shares are held by two separate
shareholders, which may not act in the interests of other shareholders or
stakeholders in PLDT</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Affiliates
of First Pacific directly or indirectly own approximately 31.2% of PLDT&#146;s
common stock as at December 31, 2004.  This is the largest block of PLDT&#146;s common stock
that is directly or indirectly under common ownership.  NTT Communications owns
14.8% of PLDT&#146;s common stock as at December 31, 2004
and has contractual veto rights over a number of major decisions and
transactions that PLDT could make or enter into, including:</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
capital expenditures in excess of
US$50 million;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
any investments, if the aggregate
amount of new investments for the previous 12 months is greater than US$100
million, determined on a rolling monthly basis;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
any investments in a specific
investee, if the cumulative value of all investments made by PLDT in that
investee is greater than US$10 million in the case of an existing investee and
US$50 million in the case of a new investee;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
issuance of common stock or stock
that is convertible into common stock;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
new business activities other than
those we currently engage in;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
merger or consolidation; and</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the provision of financial support
to Piltel in excess of that remaining available under the PLDT Letter of
Support, or LOS.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">First Pacific and NTT
Communications have also entered into a shareholders&#146; agreement relating to
PLDT.  As a result of this agreement and their respective stockholdings, First
Pacific and its affiliates and/or NTT Communications are able to influence our
actions and corporate governance, including:</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
elections of PLDT&#146;s directors; and</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
approval of major corporate
actions, which require the vote of common stockholders.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">First Pacific and its affiliates
and/or NTT Communications may exercise control over these decisions and
transactions in a manner that could be contrary to your interests.</p>

<p style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>If a major shareholder sells its interest in PLDT, the transaction may
result in an event of default</i></p>

<p style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style="margin-top:0;margin-bottom:0">If First Pacific or NTT
Communications sells all or a portion of its equity interest in PLDT, in
certain circumstances, such sale may give rise to an obligation for us to make
an offer to purchase or prepay our outstanding debt under our 10.625% Notes due
2007 and our 11.375% Notes due 2012, our JP&yen;9,760 million loan agreement with
Japan Bank for International Cooperation, or JBIC, (formerly known as the
Export-Import Bank of Japan) and our JP&yen;5,615 million syndicated term loan
facility, and may result in a default under some of Smart&#146;s loan agreements.
As at December 31, 2004, Php25,633 million in principal amount of PLDT&#146;s
indebtedness is directly subject to a change in control offer to purchase or
prepay requirement and Php14,787 million in principal amount of Smart&#146;s
indebtedness is subject to an event of default in the event of a change in
control of PLDT.  If we fail to complete a required change in control offer, to
purchase or prepay the affected debts, all of our debt could become immediately
due and payable as a result of various cross-default provisions.  See <i>Note
12 &#150; Interest-bearing Financial Liabilities &#151; Long-term Debt &#151; Debt Covenants</i>
to the accompanying consolidated financial statements in Item 18.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Our business is significantly affected by governmental laws and
regulations, including regulations in respect of our franchises and rates</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">We operate our business under
franchises, each of which is subject to amendment, termination or repeal by the
Philippine Congress.  Additionally, PLDT operates pursuant to various
provisional authorities and certificates of public convenience and necessity,
or CPCNs, which are granted by the NTC and expire between now and 2028.  Some
of PLDT&#146;s CPCNs and provisional authorities have already expired.  However, PLDT
filed applications for extension of these CPCNs and provisional authorities
prior to their respective expiration dates and is therefore entitled to
continue to conduct its business under its existing CPCNs and provisional
authorities pending the NTC&#146;s decisions on these extensions.  Smart also
operates its cellular, international long distance, national long distance and
global mobile personal communications via satellite services pursuant to CPCNs,
which will expire upon the expiration of its franchise.  Smart&#146;s franchise is
due to expire on March 27, 2017, 25 years after the date on which its current
franchise was granted.  Smart operates international private leased circuits
under a provisional authority, which expired on May 6, 2003.  Smart applied for
an extension of this provisional authority prior to its expiration.  While an
extension has not yet been formally granted, since PLDT and Smart filed the
applications for extension on a timely basis we expect that these extensions
will be granted.  However, we cannot assure you that the NTC will grant these
extensions.  If a CPCN has not been issued, the NTC may permit an operator to
provide services pursuant to a provisional authority.  Provisional authorities
are typically granted for a period of 18 months.  The Philippine Revised
Administrative Code of 1987 provides that if the grantee of a license or
permit, such as a CPCN or provisional authority, has made timely and sufficient
application for the extension thereof, the existing CPCN or provisional authority
will not expire until the application is finally decided upon by the
administrative agency concerned.  However, we cannot assure you that our
franchises, CPCNs and provisional authorities will be renewed.  For a
description of our licenses, see &#147;Item 4. Information on the Company &#151; Licenses
and Regulation.&#148;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
NTC also regulates the rates we are permitted to charge for services that have
not yet been deregulated, such as local exchange services.  We cannot assure
you that the NTC will not impose additional obligations on us that could lead
to the revocation of our licenses if not adhered to and/or reduction in our
operating revenues or profitability.  In addition, the NTC could adopt changes
to the regulations governing our interconnection with other telecommunications
companies or the rates and terms upon which we provide services to our
customers that could have a material and adverse effect on our results of
operations.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in;punctuation-wrap:hanging;text-autospace:
ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">In the first
quarter of 2005, House Bill No. 926 was filed and is now pending in the House
of Representatives of the Philippines.  The&nbsp;proposed bill provides for the
cancellation of the currency exchange rate mechanism pursuant to which utility
companies, including us, are permitted to adjust our monthly local exchage
service rates according to changes in the peso-to-U.S. dollar exchange rate.
If this bill is passed into law or if the NTC issues guidelines to change the
basis of the currency exchange rate mechanism mechanism, our ability to
generate U.S. dollar linked revenues from our local exchange business could be
adversely affected. A decline in our foreign currency-linked revenues could
increase our exposure to risks from declines in the value of the Philippine
peso against the U.S. dollar.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style="margin-top:0;margin-bottom:0">The NTC may implement
changes in existing regulations and introduce new regulations, which may result
in increased competition and may have negative implications for our revenues
and profitability</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On June 16, 2000, the
NTC issued Memorandum Circular No. 13-6-2000
proposing that Philippine cellular operators, including Smart and Piltel, be
required, among other things:</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
to bill their subscribers for
cellular calls on a six-second pulse basis instead of the current per minute
basis;</p>

<p style='margin-left:.75in;text-indent:-.25in;line-height:
7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
not to bill calls directed to
recorded voice messages; and</p>

<p style='margin-left:.75in;text-indent:-.25in;line-height:
7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
to extend the expiration date of
prepaid cards from the current two months to two years.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Along
with the other Philippine cellular operators, Smart sought and obtained from a Quezon
 City trial court a preliminary injunction restraining the implementation of
the memorandum circular.  The NTC appealed the issuance of the injunction to
the Court of Appeals which, on October 9, 2001, annulled the preliminary
injunction, ruling that the NTC had jurisdiction over the matter.  On January 10, 2002, the Court of Appeals denied the cellular operators&#146; motion to annul and
reverse the decision of the Court of Appeals.  On February 22, 2002, Smart filed an appeal with the Supreme Court arguing that the appellate court had erred in
ruling that the NTC, and not the trial court, had jurisdiction over its case.
On September 2, 2003, the Supreme Court upheld Smart&#146;s appeal, reversing and
setting aside the decision of the Court of Appeals and affirming that the Quezon
 City trial court could hear and decide the case.  The case was remanded to
the Quezon City trial court for continuation of the proceedings. The NTC filed
a motion for reconsideration on September 29, 2003 which was denied with
finality by the Supreme Court on November 13, 2003.  The Supreme Court stated
that &#147;considering that the basic issues have already been passed upon and there
is no substantial argument to warrant a modification of this court&#146;s decision,
the court resolves to deny consideration with finality.&#148;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
NTC has also issued draft guidelines regarding the assignment and allocation of
3G and VoIP licenses and frequency bands, which are still subject to further
discussions with incumbent operators and other market participants.  We cannot
predict what the final implementation guidelines for these services will
contain, nor can we determine the timing of when these regulations will be
implemented.  In addition, we cannot assure you that other regulatory changes
initiated by the NTC will not lead to increased competition and that it will
not have an adverse effect on our business, results of operations and
prospects.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
text-indent:0in' style="margin-top:0;margin-bottom:0"><i>The Philippine Government may impose new taxes and/or
implement higher tax rates which may have negative implications for our
revenues and profitability</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">On
 May 24, 2005, the President signed into law Republic Act No. 9337 amending
certain sections of the National Internal Revenue Code with effect on July 1, 2005.  In particular, the following amendments may negatively impact our
profitability:  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
increase of the income tax rate
for corporations from 32% to 35% effective July 1, 2005,
followed by a reduction to 30% effective January 1, 2009;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
conferment upon the President,
upon the recommendation of the Secretary of Finance, of the power to raise the
value-added tax, or VAT, rate from 10% to 12% effective January 1, 2006,
after any one of the following conditions has been satisfied;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
VAT collection as a percentage of
the Gross Domestic Product, or GDP, exceeds 2.8% in 2005; or </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the fiscal deficit as a percentage
of GDP, which represented 3.8% in 2004, exceeds 1.5% in 2005.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
limited claim of input tax credits
to 70% of output tax; and</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
input tax on capital goods spread
evenly over 5 years or estimated useful life, whichever is shorter.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">We
can not assure you that the proposed increase in taxes will not have a material
adverse effect on our revenues, profitability and cash flows.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Moreover,
the Philippine Congress is considering five bills which were filed prior to the
signing into law of R. A. 9337.  Each of the proposed bill, if passed by
Congress and enacted into law, would impose a 7% or 10% tax on the gross
receipts of cellular operators.  The proposed taxes would apply to both
cellular calls and cellular data revenues and prohibit cellular operators from
imposing additional charges or fees to compensate for the imposition of the
proposed taxes.  In addition, several bills have also been submitted for
consideration by Congress, each of which, if passed by Congress and enacted
into law, would impose a franchise tax at a rate of 7% or 5% tax on gross
receipts of all telecommunications companies in lieu of the currently
applicable 10% VAT.  We cannot assure you that we would be able to impose
additional charges or fees to compensate for the imposition of such taxes. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>Risks Relating to the </i></b><b><i>Philippines</i></b></p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i>Our business may be
affected by political or social instability in the </i><i>Philippines</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">In the past four years, an
increasing number of kidnappings, criminal and terrorist activities have
occurred in Mindanao, principally led by the extremist &quot;Abu
Sayyaf&quot; group, which reportedly has ties to the Al-Qaeda terrorist
network.  There have been a series of bombing incidents in key cities in Mindanao,
including Davao City.  The armed conflict between the Philippine military
and the communist Moro Islamic Liberation Front also continues in Mindanao.  This
social unrest negatively impacted the operations of Piltel&#146;s fixed line
business in Mindanao. </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">In November 2001, members of the
rebel groups damaged three of our cell sites located in Central Luzon
and one of our relay stations, including some radio facilities, in Southern Mindanao
in response to our failure to pay &#147;revolutionary taxes&#148; demanded by these
groups.  On July 27, 2003, approximately 300 Philippine soldiers took control
of a shopping center and apartment complex in Makati City in an
effort to express their dissatisfaction with the Philippine government.  The
mutineers surrendered within 20 hours.  The government has reported that the
actions taken by the approximately 300 Philippine soldiers were part of a coup
attempt.  In October 2003, a group of unidentified armed men inflicted minor
damage to Smart&#146;s cell site in Bicol.  </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
presidential election held on May 10,
 2004 , resulted in a victory by the
incumbent President Gloria Macapagal-Arroyo who successfully retained her
post.  The opposition has alleged irregularities in the presidential election,
such as stolen ballots and vote buying.  The Philippine Congress also commenced
an inquiry into a wire tapped audio tape which contains a conversation allegedly
between President Gloria Macapagal-Arroyo and a commissioner of the Commission
on Elections discussing the vote count on the presidential election held on May 10, 2004.  On June 27, 2005,
President Gloria Macapagal-Arroyo publicly stated that she did speak to a
commissioner of the Commission on Elections in order to protect her votes, but
not to influence the outcome of the election.  Moreover, the Philippine
Congress announced in May 2005, that it would begin an inquiry into allegations
that President Gloria Macapagal-Arroyo&#146;s family was involved in a gambling
scandal.  We cannot assure you that political events or terrorists&#146; activities
will not result in major public protest or the involvement of the military in
politics.  Any political instability in the future may have a negative effect
on our results of operations and financial condition.  We cannot assure you
that the political environment in the Philippines will be stable or that the current or any future
government will adopt economic policies conducive to sustained economic growth
or which do not impact adversely on the current regulatory environment for
telecommunications or other companies.  </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Our
results of operations may be negatively affected by slow growth rates and
economic instability in the Philippines and in Asia</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">In the past, the Philippines has
experienced periods of slow growth, high inflation, significant devaluation of
the peso, imposition of exchange controls, debt restructuring and electricity
shortages and blackouts, and has been significantly affected by economic
volatilities in the Asian Region.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
2004, the Philippine government incurred a fiscal deficit of Php184,051 million
which was lower by approximately 8% from the Php199,900 million incurred in
2003.  The fiscal deficit incurred for 2004 represents 3.8% of the nominal
gross domestic product.  In order to reduce the fiscal deficit, the Philippine
Government is targeting to generate additional revenues of over Php180 billion
per year through executive reforms and implementing a legislative revenue
agenda.  In particular, on May 24, 2005,
the President signed into law Republic Act No. 9337, which increases the income
tax rate for corporations from 32% to 35% effective July 1, 2005, followed by a reduction to 30% effective January 1, 2009, and confers upon the President, upon the
recommendation of the Secretary of Finance, the power to raise the VAT rate
from 10% to 12% effective January 1, 2006, if either (i) the VAT collection as
a percentage of GDP exceeds 2.8% in 2005 or (ii) the fiscal deficit as a
percentage of GDP, which represented 3.8%
in 2004,  exceeds 1.5% in 2005.
Moreover, the Philippine Government is considering the following additional
measures that, if implemented, would impact us:</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;      adoption
of gross income taxation; and</p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;      re-imposition
of franchise tax on telecommunications companies. </p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-indent:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">On May 30, 2005, Fitch Ratings revised the outlook on
PLDT&#146;s long-term foreign currency rating to stable from negative.
Simultaneously, Fitch has affirmed PLDT&#146;s long-term foreign currency rating,
global bonds and senior notes at &#147;BB&#148; and PLDT&#146;s convertible preferred stock at
&#147;B+&#148;.  PLDT&#146;s long-term local currency rating has also been affirmed at &#147;BB+&#148;
and the stable outlook on this rating remains in place.  The rating actions reflect
Fitch&#146;s decision to revise its outlook on the Republic of the Philippines&#146; &#147;BB&#148;
long-term foreign currency rating to stable from negative.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">On February 16, 2005, Moody&#146;s
Investor&#146;s Service, Inc., or Moody&#146;s, downgraded the foreign currency senior unsecured
debt rating of PLDT to Ba3 from Ba2 with a stable outlook.  The rating action
was taken as part of Moodys&#146; two-notch downgrade of the Republic of the Philippines&#146;
foreign currency country ceiling to B1 from Ba2.  On the same date, Moody&#146;s
affirmed PLDT&#146;s B1 preferred stock rating with a stable outlook.  Moody&#146;s views
that there is a differential between PLDT&#146;s foreign currency rating and the
Philippine sovereign rating because foreign currency bonds subject to
international law are less likely to be subject to a debt moratorium than
foreign currency obligations subject to local law.  According to Moody&#146;s,
PLDT&#146;s foreign currency debt rating is a function of its own risk of default
and the probability of a Philippine government default on its foreign debt, the
likelihood that the Philippine government would declare a moratorium in the
event of a default, and if it did, the chances that it would exempt companies
such as PLDT.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">On January 17, 2005, Standard and
Poor&#146;s Rating Group, or Standard and Poor&#146;s, revised its long-term foreign
currency rating on PLDT from &#147;BB&#148; to &#147;BB-&#148;
(BB minus) with a stable outlook.  The rating action was taken immediately
after Standard and Poor&#146;s downgraded the foreign currency rating on the
Republic of the Philippines to &#147;BB-&#148; (BB
minus).  </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
growing government fiscal deficit and a global increase in oil prices have
resulted in increased concerns about the political and economic stability in
the Philippines.  This, in turn, has resulted in the depreciation of
the peso against the U.S. dollar and the volatility of the prices of shares
traded on the domestic stock market.  We cannot assure you that these factors
will not affect our results of operations in a materially adverse manner.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style="margin-top:0;margin-bottom:0"><i>If foreign exchange
controls were to be imposed, our ability to meet our foreign currency payment
obligations could be adversely affected</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Approval
from or registration with the BSP for the issuance and guarantee of foreign
currency denominated borrowings is not required in order to make our foreign
currency payment obligations legally valid and binding.  However, receiving
this approval and registration will enable a borrower to access the banking
system to obtain foreign currency to service its debt obligations rather than
using other sources of foreign currency, for example, foreign currency revenue
streams.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The Philippine government has, in the past, instituted
restrictions on the conversion of the peso into foreign currency and the use of
foreign exchange received by Philippine companies to pay foreign
currency-denominated obligations.  The Monetary Board of the BSP has statutory
authority, with the approval of the President of the Philippines,
during a foreign exchange crisis or in times of national emergency, to:</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
suspend temporarily or restrict
sales of foreign exchange;</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
require licensing of foreign
exchange transactions; or</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
require the delivery of foreign
exchange to the BSP or its designee banks.</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
cannot assure you that foreign exchange controls will not be imposed in the
future.  If imposed, these restrictions could materially and adversely affect
our ability to obtain foreign currency to service our foreign currency
obligations.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>The occurrence of natural catastrophes may materially disrupt our
operations</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The Philippines
has experienced a number of major natural catastrophes over the years including
typhoons, volcanic eruptions and earthquakes that may materially disrupt and
adversely affect our business operations.  We cannot assure you that the
insurance coverage we maintain for these risks will adequately compensate us
for all damages and economic losses resulting from natural catastrophes.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc75779196"></a><a
name="_Toc46082255">Item 4.        Information
on the Company</a></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779197"></a><a name="_Toc46082256">Overview</a></p>

<p style='line-height:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">We
are the leading national telecommunications service provider in the Philippines.
Through our three principal business groups &#151; wireless, fixed line, and
information and communications technology &#151; we offer a wide range of
telecommunications services to over 21 million wireless and fixed line
subscribers in the Philippines across the nation's most extensive fiber optic
backbone and fixed line, cellular and satellite networks.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
are the leading fixed line service provider in the Philippines
with approximately 62% of the total reported fixed lines in service nationwide
as at December 31, 2004.  Smart, our wholly-owned subsidiary, is the leading
cellular service provider in the country, with approximately 44% of total
reported cellular subscribers as at December 31, 2004.
Piltel, our 92.1%-owned subsidiary, had approximately 14% of total reported
cellular subscribers as at December 31,
 2004.  We have interests in the
information and communications technology sectors, including Infocom, one of
the leading ISPs in the Philippines.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Our common shares are listed and
traded on the Philippine Stock Exchange, or PSE, and our American Depositary
Shares are listed and traded on the New York Stock Exchange and the Archipelago
Exchange in the United States.  We had a market capitalization of approximately
Php252,568 million (US$4,483 million) as at May 31, 2005, representing one of
the largest market capitalizations among Philippine-listed companies.  For the
year ended December 31, 2004, we had consolidated operating revenues of Php121,221
million (US$2,152 million). </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
principal executive offices are located at the Ramon Cojuangco Building, Makati Avenue,
 Makati City, Philippines and our telephone number is (632) 816-8024.  Our
website address is <i>www.pldt.com.ph</i>.  The contents of our website are not
a part of this annual report.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779198"></a><a name="_Toc46082257">Historical Background and Development</a></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">PLDT was incorporated under the
old Corporation Law of the Philippines (Act 1459, as amended) on November 28, 1928, following the
merger of four telephone companies under common U.S. ownership.  Under its
amended Articles of Incorporation, PLDT&#146;s corporate term is limited through
2028.  In 1967, effective control of PLDT was sold by General Telephone and
Electronics Corporation (a major shareholder since PLDT&#146;s incorporation) to a
group of Filipino businessmen.  In 1981, in furtherance of the then existing
policy of the Philippine government to integrate the Philippine
telecommunications industry, PLDT purchased substantially all of the assets and
liabilities of the Republic Telephone Company which at that time was the second
largest telephone company in the Philippines.  During 1998, First Pacific,
through its Philippine and other affiliates, acquired a significant interest in
PLDT.  On March 24, 2000, NTT Communications, through NTTC-UK, became PLDT&#146;s
strategic partner with approximately 15% economic and voting interest in the
issued common capital stock of PLDT.  Simultaneous with NTT Communications&#146;
investment in PLDT, we acquired 100% of Smart.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">PLDT&#146;s original franchise, which
was granted in 1928, was last amended in 1991 to be extended until 2028.  The
amended franchise (R.A. No. 7082), which became effective on August 24, 1991, also
broadened PLDT&#146;s franchise to permit PLDT to provide virtually every type of
telecommunications service.  PLDT&#146;s franchise covers the business of providing
basic and enhanced telecommunications services in and between the provinces,
cities and municipalities in the Philippines and between the Philippines and
other countries and territories including mobile, cellular, wired or wireless
telecommunications system, fiber optics, multi-channel transmission
distribution systems and their value-added services such as but not limited to
transmission of voice, data, facsimile, control signals, audio and video,
information services bureau and all other telecommunications systems
technologies, as are at present available or can be made available through
technical advances or innovations in the future.  </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Since the implementation of its
Subscriber Investment Plan, or SIP, in 1973 pursuant to Presidential Decree No.
217, which, until April 21, 2003, required telephone subscribers to purchase shares of
PLDT's preferred stock, PLDT has developed a broad base of public ownership
with approximately 2,200,367 common and preferred shareholders of record as at December 31, 2004.
Approximately 2,183,736 of these shareholders are Philippine persons
representing approximately 87% of PLDT's outstanding common and preferred
shares.  For purposes of the percentages described in this paragraph, all the
ADSs evidenced by American Depositary Receipts, or ADRs, are considered to be
held of record in the United States.  As approved by the NTC, the purchase of PLDT
preferred shares by PLDT subscribers pursuant to the SIP became optional
starting April 22, 2003.  </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Our consolidated capital
expenditures amounted to Php19,268 million, Php17,943 million, and Php17,239
million in 2004, 2003 and 2002, respectively.  Of these amounts, Php3,917
million, Php6,100 million, and Php8,194 million were attributable to PLDT for
2004, 2003 and 2002, respectively, while Php14,721 million, Php11,305 million
and Php7,564 million were spent by Smart for 2004, 2003 and 2002,
respectively.  The remaining balances were spent by our other subsidiaries,
principally ePLDT and its subsidiaries.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779199"></a><a name="_Toc46082258">Organization</a></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">As at May 31, 2005, our two largest shareholders were
First Pacific, a Hong Kong-based investment and management company engaged in
consumer, telecommunications and property businesses, which, through its
Philippine and other affiliates, beneficially owned 31.2% of our common shares,
and NTT Communications, a wholly-owned subsidiary of Nippon Telegraph and
Telephone Corporation of Japan, which beneficially owned 14.8% of our common
shares.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">PLDT and the following subsidiaries were all
incorporated in the Philippines, except for PLDT Global, which was
incorporated in the British
 Virgin Islands:</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   rowspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Name of
 Subsidiary/Investee</b></p>
 </td>
 <td   rowspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Principal
 Activity</b></p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Percentage
 of Ownership</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-top:0in;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Wireless</b></p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Smart and subsidiaries</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cellular mobile services</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Piltel and subsidiaries</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:12.6pt;text-indent:-12.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Cellular
 mobile and telecommunications services</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">92.1</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">45.3</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">45.3</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Telesat</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Satellite communications services</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">94.4</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">94.4</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">94.4</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">ACeS Philippines </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Satellite phone services</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Mabuhay Satellite</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Satellite communications services</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">67.0</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">67.0</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">67.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Fixed Line</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Clark Telecom</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Telecommunications
 services</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Subic Telecom</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Telecommunications services</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Smart-NTT Multimedia, Inc.</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Data and network services</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">PLDT Global and subsidiaries</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Telecommunications services</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">PLDT-Maratel</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Telecommunications services</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">97.5</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">97.5</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">97.5</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">BCC</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:15.0pt;text-indent:-15.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Telecommunications,
 infrastructure and related value-added services</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">75.0</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">75.0</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">37.5</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><b>Information and Communications Technology</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">ePLDT and subsidiaries</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:12.6pt;text-indent:-12.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Information and
 communications infrastructure for internet-based services, e-commerce, call
 centers and IT-related services</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-indent:.25in;
line-height:normal' style="margin-top:0;margin-bottom:0"><i>Smart&#146;s Acquisition of Meridian
Telekoms, Inc., or </i><i>Meridian</i></p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">On July 5, 2004, Smart entered into a
sale and purchase agreement, as amended and supplemented on August 11, 2004, to
acquire 100% of Meridian, a company primarily engaged in providing wireless
broadband and data services to small and medium-scale enterprises in the Philippines,
for a total consideration of US$45 million.  Payments of US$11 million and US$7
million for an equity interest of 40% in Meridian were made in 2004 and payment of US$4 million for an
additional equity interest of 9% in Meridian was made in January 2005.  The balance of US$23
million is payable on or before December
 31, 2005 in respect of the remaining 51%
equity interest in Meridian.  The acquisition aims to strengthen Smart&#146;s position
in the wireless data segment and is in line with Smart&#146;s overall strategy of
providing the widest range of innovative wireless services.  For further
details, see <i>Note 9 &#150; Goodwill and Other Intangible Assets</i> to the
accompanying consolidated financial statements in Item 18.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Changes in Piltel&#146;s Shareholdings</i></b></p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">To
integrate the PLDT Group&#146;s wireless holdings, on July 2, 2004, Smart entered into
a sale and purchase agreement with PLDT to acquire PLDT&#146;s 59.3 million shares
of Piltel Series K Class I Convertible Preferred Stock for a purchase price of
Php2,066 million.  The payment was settled through an offset of amounts owed to
Smart by PLDT arising from interconnection charges.  On July 9, 2004 and December 28, 2004,
Smart converted a total of 4.8 million and 54.5 million shares, respectively,
of Piltel Series K Class I Convertible Preferred Stock into 10,080 million
shares of common stock of Piltel, equivalent to 85.6% of the resulting total
outstanding shares of common stock after such conversion.  On April 25, 2005, PLDT
and Smart entered into a subscription and assignment agreement covering the
transfer and assignment to Smart of 767 million shares of Piltel common stock
owned by PLDT.  As a result, Smart now owns 92.1% of the total outstanding
common stock of Piltel, thereby consolidating the PLDT Group&#146;s wireless
business under Smart.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>Wireless</i></b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
provide cellular and satellite, VSAT and other services through our wireless
business segment. Revenues from our wireless business accounted for 60%, 57%
and 51% of our total operating revenues for the years ended December 31, 2004,
2003 and 2002, respectively.  In 2004, 2003 and 2002, cellular service revenues
accounted for 97%, 97% and 95%, respectively, of our wireless business service
revenues. </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Our
cellular service (including handset sales), which accounted for about 97% of
our wireless service revenues for the year ended December 31, 2004, is provided
through Smart and Piltel.  Smart is the leading cellular service provider in
the Philippines, with approximately 14.6 million subscribers as at December 31, 2004, representing an estimated market share of approximately 44%.  Piltel, a
reseller of Smart's digital capacity under its own branding and pricing
strategy for voice and text messaging services, had approximately 4.6 million
subscribers as at December 31, 2004, representing an estimated market share of
14%.  In 2004, the combined number of Smart's and Piltel's subscribers (being
served using Smart&#146;s network) increased by 48%, representing the largest
increase in the number of cellular subscribers in absolute terms in that period
among Philippine cellular providers.  As at December 31, 2004, cellular penetration in the Philippines was approximately 39%, which was nearly ten times
the country's fixed line penetration.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Smart's
and Piltel's cellular subscriber gains were predominantly attributable to their
respective prepaid services.  Approximately 98% of Smart's cellular subscribers
were prepaid as at December 31, 2004.  The predominance of prepaid service
reflects one of the distinguishing characteristics of the Philippine cellular
market.  The growth in our prepaid service has enabled us to increase and
broaden our subscriber base rapidly while controlling credit risk and reducing
billing and administrative costs on a per-subscriber basis.  </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Our
cellular subscriber growth has also been driven by text messaging service.
Text messaging service is extremely popular in the Philippines, particularly on
the prepaid platform, as it provides a convenient and inexpensive alternative
to voice and e-mail based communications.  During 2004, our text messaging
service system handled 40,953 million outbound messages, an increase of 42%
compared to 28,825 million outbound messages handled during 2003. </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As
at December 31, 2004, Smart's digital network included 36 mobile switching
centers with a capacity of 17.3 million subscribers and 5,303 base stations
covering 1,433 cities and municipalities.  Piltel&#146;s prepaid service, <i>Talk &#145;N
Text</i>, is also supported on this network.  </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Fixed Line</i></b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">We
are the leading fixed line operator in the Philippines and the only company providing fixed line
telecommunications service throughout the country.  Our fixed line business
group offers local exchange, international long distance, national long
distance, data and other network and miscellaneous services.  As at December 31, 2004, we
had approximately 2.2 million fixed lines in service.  Revenues from our fixed
line services accounted for 38% of our total operating revenues for the year
ended December 31, 2004.</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
have a 5,400-kilometer long digital fiber optic backbone, which is supported by
an extensive digital microwave backbone.  Our fixed line network reaches all of
the major cities and municipalities in the Philippines, with a concentration in the Metropolitan Manila
area.  Our network offers the country&#146;s most extensive connections to
international networks through three international gateway switching exchanges,
satellite systems and various regional submarine cable systems in which we have
interests.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Information and Communications Technology</i></b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Through
our wholly-owned subsidiary, ePLDT, we provide broad-based integrated
information and communications technology, or ICT, services focusing on
infrastructure and solutions for internet applications, internet protocol-based
solutions and multimedia content delivery.  Incorporated in August 2000, ePLDT
started commercial operations in February 2001.  ePLDT's principal activities
are the operation of an internet data center under the brand name <i>Vitro&#153;</i>,
call center businesses and Infocom, an ISP.  </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">ePLDT has also invested in a
number of other e-commerce and internet-related businesses, as described in &#147;&#151;
Business &#151; Information and Communications Technology &#151; Infrastructure and
Services &#151; Other Investments&#148; below.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As
the newest business in the PLDT Group, revenues from our ICT services accounted
for 2% of our consolidated service revenues in 2004.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779200"></a><a name="_Toc46082259">Strengths</a></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">We
believe our business is characterized by the following competitive strengths:</p>

<p style='line-height:7.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Recognized Brands</i>.  PLDT and Smart are strong and widely recognized
brand names in the Philippines.  We have built the PLDT brand name for over 75 years
as the leading telecommunications provider in the Philippines.
Smart is recognized in the Philippines as an innovative provider of high-quality cellular
services.  Piltel&#146;s <i>Talk 'N Text</i> brand, which is provided using Smart&#146;s
network, has also gained significant recognition.</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Leading Market Shares</i>.  With over 21 million cellular and fixed line
subscribers as at December 31, 2004, we have the leading market position in both the
cellular and fixed line markets in the Philippines.  ePLDT&#146;s subsidiary, Infocom, is one of the leading
ISPs in the Philippines.</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Diversified Revenue Sources</i>.  As a result of the continued growth of wireless
service in the country, approximately 60% of our consolidated operating
revenues in 2004 are now derived from our wireless business segment.  Fixed
line revenues, which represent 38% of our consolidated operating revenues in
2004 compared to 41% in 2003, have remained stable over the past three years
despite pressures on traditional fixed line voice revenues, resulting from
increases in our fixed line data and other network services.  We continue to
identify and develop new revenue sources from our wireless, fixed line and ICT
businesses.</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Advanced Integrated Network</i>.  With one of the most advanced and extensive
telecommunications networks in the Philippines, we are able to offer a wide array of communications
services.  We are enhancing the capabilities of our fixed line and wireless
networks to allow us to better exploit this competitive strength and achieve
higher levels of network efficiency in providing voice and data services.</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Innovative Products and
Services</i>.  We have successfully
introduced a number of innovative and award-winning cellular products and
services, including <i>Smart Load, Talk &#145;N Text Load, Pasa Load </i>and <i>Smart</i>
<i>Padala</i><i>.</i>  <i>Smart </i>and <i>Talk &#145;N Text Loads</i> are
&#147;over-the-air&#148; electronic loading facilities designed to make reloading of air
time credits more convenient for, and accessible to consumers.  <i>Pasa Load </i>(literally
means &#147;transfer load&#148;), a derivative service of <i>Smart </i>and<i> </i><i>Talk
&#145;N Text Loads,</i> allows load transfers to other <i>Smart Buddy</i> and <i>Talk
&#145;N Text </i>subscribers.  <i>Smart Padala,</i> a cash remittance service
intended for overseas Filipino workers, is the first cash remittance service
through text messaging service technology and is faster and more cost effective
than traditional cash remittance services.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Strong Strategic Relationship</i>.  We have an important strategic relationship with
NTT Communications and First Pacific.  The technological support, international
experience and management expertise made available to us through these
strategic relationships enhance our market leadership and ability to provide
and cross-sell a more complete range of products and services.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779201"></a><a name="_Toc46082260">Strategy</a></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The
key elements of our business strategy are:</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Build on our leading positions
in the wireless and fixed line businesses</i>.  We plan to build on our position as the leading wireless service
provider in the Philippines by continuing to introduce new products and services
to increase our subscribers&#146; use of our network for both voice and data, as
well as their reliance on our services.  We also plan to further increase the
capacity and expand the geographic reach of our cellular network, as well as to
improve our service quality and indoor coverage.  Our operating target is to
continue growth in profitability by increasing our revenues while controlling
costs.  We plan to build on our position as the leading provider of fixed line
service in the Philippines by continuing to launch new products and services to
increase subscriber value and utilization of our existing facilities and
equipment at reduced cost.  </p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Capitalize on our strength as
an integrated provider of telecommunications services</i>.  We offer the broadest range of telecommunications
services among all operators in the Philippines.  We plan to capitalize on this position to maximize
revenue opportunities by bundling and cross-selling our products and services
between voice and data and fixed line and cellular.  We are also lowering our
costs by integrating the operations of our different businesses.</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Strengthen our leading position
in the data market</i>.  Using the
existing network of our fixed line business, we are committed to further develop,
enhance and lead our fastest growing business segment &#150; data and network
services.  Consistent with our strategy of introducing innovative products and
services using advanced technology, we have launched various products and
services that address different market needs.  </p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Strengthen our financial
position</i>.  We are working to increase
our cash flow available for debt reduction by containing our operating costs,
reducing capital expenditures and generating cash returns from our investments
in subsidiaries.  Since December 2002, Smart has been regularly paying
dividends to PLDT to supplement PLDT&#146;s cash flows available for debt
reduction.  Smart&#146;s dividend payments have increased from Php1,540 million in
2002 to Php16,100 million in 2004.</p>

<p style='line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Business</b></p>

<p style='line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779202"></a><a name="_Toc46082262">Wireless</a></p>

<p style='line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">We
provide cellular and satellite, VSAT and other services through our wireless
business segment.  In 2004, 2003 and 2002, cellular business accounted for 97%,
97% and 95%, respectively, of our wireless business service revenues.</p>

<p style='line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Cellular Service</i></p>

<p style='line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Overview</i></p>

<p style='line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
cellular business, which we provide through Smart and Piltel to over 19 million
subscribers, approximately 99% of whom are prepaid subscribers, is focused on
providing wireless voice communications, wireless data communications
(primarily through text messaging) and a variety of other value-added services,
which include (a) <i>Mobile Banking</i> (banking services delivered over the
mobile phone); (b) <i>Smart zedTM</i>; (c) <i>Smart Money</i>; and
(d) international roaming, as well as other value-added services developed on
Smart&#146;s and Piltel&#146;s own platform.  Smart services the almost five million
subscribers of Piltel on its GSM network through a facilities service agreement
with Piltel, under the brand name <i>Talk &#145;N Text</i>.</p>

<p style='margin-left:.75in;text-indent:-.25in;line-height:
10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The
following table summarizes key measures of Smart&#146;s and Piltel&#146;s cellular
business as at and for the years ended December 31, 2004,
2003 and 2002:</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse'>

 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Years Ended
 December 31,</b></p>
 </div>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2002</b></p>
 </div>
 </td>
 </tr>

 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Systemwide cellular subscriber base</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">19,208,232</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,947,197</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,599,306</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Smart(1)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14,595,782</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,080,112</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,825,686</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:22.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Prepaid</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14,321,288</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9,831,135</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,649,038</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:22.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Postpaid</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">274,494</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">248,977</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">176,648</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Piltel - Prepaid</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,612,450</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,867,085</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,773,620</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.25in;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Growth rate of cellular subscribers</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">48%</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">51%</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">35%</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Smart</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">45%</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">48%</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">39%</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Piltel(2)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">61%</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">62%</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">33%</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Cellular revenues (in
 millions)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php73,141</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php63,480</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php46,595</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Service</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">67,030</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">52,932</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">34,500</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Non-service</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Handset sales </p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,111</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,548</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,095</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Percentage of cellular
 revenues to total operating revenues </p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">58%</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">56%</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">49%</p>
 </td>
 </tr>
</table></center></div>

<p style='line-height:7.0pt;page-break-after:auto' style="margin-top:0;margin-bottom:0">_____________</p>

<p style='line-height:3.0pt' style="margin-top:0;margin-bottom:0"><u>&nbsp;</u></p>

<p style='margin-left:20.25pt;text-indent:-20.25pt' style="margin-top:0;margin-bottom:0"><i>(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>In December 2002, Smart
closed down its analog/ETACS network.</i></p>

<p style='line-height:3.0pt' style="margin-top:0;margin-bottom:0"><u>&nbsp;</u></p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:
0in;margin-left:20.25pt;margin-bottom:.0001pt;text-indent:-20.25pt' style="margin-top:0;margin-bottom:0"><i>(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>Represents Talk &#145;N Text, a
prepaid service provided by Piltel using Smart&#146;s network. Piltel&#146;s revenue is
net of service fees payable to Smart for using Smart&#146;s network.  Piltel does
not offer postpaid service.</i></p>

<p style='line-height:3.0pt' style="margin-top:0;margin-bottom:0"><u>&nbsp;</u></p>

<p style='line-height:3.0pt' style="margin-top:0;margin-bottom:0"><u>&nbsp;</u></p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Service
Plans</i>.  Smart markets nationwide
cellular communications services under the brand names <i>Smart Buddy, Smart
Gold,</i> <i>addict mobile,</i> <i>addict mobile prepaid, Smart Infinity, Smart
Kid </i>and <i>Smart</i> <i>Kid prepaid.  Smart Buddy, addict mobile prepaid
and Smart Kid prepaid</i> are prepaid services while <i>Smart Gold, addict
mobile,</i> <i>Smart Infinity</i> and <i>Smart Kid</i> are postpaid services,
all of which are provided through Smart's digital network.  </p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Of
Smart&#146;s total cellular subscribers as at December 31, 2004, 98% were <i>Smart
Buddy, addict mobile prepaid</i> and <i>Smart Kid</i> <i>prepaid</i>
subscribers and 2% were <i>Smart Gold,</i> <i>addict mobile, Smart Infinity </i>and<i>
</i><i>Smart Kid</i> postpaid<i> </i>subscribers.  Introduced in April 2003, <i>addict
mobile </i>offers exclusive multimedia content to subscribers and features
personalized means for internet surfing and allows subscribers to apply their
allocated free credits towards their choice of data and value-added services.  <i>Smart
Infinity</i> is a premium postpaid plan launched in January 2004 for the
affluent and highly mobile market, offering first class quality services,
including a round-the-clock dedicated personal concierge service, international
assistance services, premium handset packages and exclusive lifestyle content.
<i>Smart Kid</i>, launched in May 2004, is especially designed for children,
and is equipped with &#147;Family Finder&#148; which automatically forwards the child&#146;s
call to pre-assigned numbers on the phone, a location-based finder service to
enable them to keep in touch with their family members, as well as with
educational value-added services content. <i> addict mobile prepaid</i> and <i>Smart
Kid prepaid</i>, the prepaid versions of <i>addict mobile</i> and <i>Smart Kid,</i>
were introduced in October 2004.</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Talk &#145;N Text</i>,
an example of Smart&#146;s successful market segmentation strategy, is the brand
carried by Smart&#146;s subsidiary, Piltel. <i>Talk &#145;N Text</i> was introduced in
April 2000 and aimed at the lower-income markets.  Capitalizing on the
Filipino&#146;s love for pop culture, <i>Talk &#145;N Text</i> extensively uses local
celebrities as its endorsers and the vernacular in its advertising and promotional
campaigns.  With over 4.6 million subscribers, <i>Talk &#145;N Text</i> has the
third-largest GSM subscriber base in the Philippines.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Text
Messaging Service and Other Value-added Services</i>.  Our cellular subscriber growth has been driven by
text messaging service on Smart&#146;s digital networks.  Text messaging is
extremely popular in the Philippines, particularly on the prepaid platform, as it provides
a convenient and cost-efficient alternative to voice and e-mail based
communications.  Text messaging also utilizes less network capacity than voice,
thereby increasing network efficiency.  Strong volume growth in text messaging
contributed significantly to our cellular revenue growth in 2004.  The total
volume of messages handled by our text messaging service system during 2004
increased by 42% to 40,953 million outbound messages from 28,825 million
outbound messages handled during 2003.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our value-added services are primarily based on text
messaging service technology.  Since 2000, Smart launched the following value-added
cellular services:</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Smart zed</i>&#153;, a partnership with international cellular operator
Sonera zed Ltd., or Sonera zed, of Finland, enables subscribers to personalize their information
requirements not only as to the types of information required but also when the
information is required.  Sonera zed has introduced a single platform that
provides access to local and global information through text messaging or
wireless application protocol;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Mobile Banking</i>, launched in collaboration with various banks, allows
subscribers to execute banking transactions, such as balance inquiries and
transfers, over their mobile telephones; and</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Smart Money</i>, launched in conjunction with MasterCard, enables
subscribers to pay for their purchases by transferring money from their bank
accounts to their Smart Money cards as well as reload their prepaid cards
electronically.</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">We
also offer value-added services such as voice mail, information-on-demand,
which are services that allow subscribers to order information from our content
providers whenever desired.  Mobile banking and <i>TextMail</i>, are services
that allow subscribers to send and receive text messages through their personal
computers and location-based services.  In addition, we have a number of
interactive activities, such as text games and chat services, developed on our
own platforms.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0"><i>Smart
Money</i> was cited as the &quot;Best Product Innovation&quot; by MasterCard
International and the &quot;Most Innovative GSM Wireless Service for
Customers&quot; at the 3rd GSM World Congress held in Cannes, France, in March
2001.  In February 2004, at the sixth GSM World Congress, <i>Smart Load, </i>an
over-the-air electronic loading facility designed to make reloading of air time
credits more convenient for and accessible to subscribers was cited as the
&#147;Best Mobile Application or Service for the Consumer Market.&#148;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">On
 August 1, 2004, Smart launched <i>Smart Padala</i>, a cash remittance service
intended for overseas Filipino workers.  <i>Smart Padala</i> is the first cash
remittance service through text messaging service technology and is faster and
more cost effective than traditional remittance services.  It is ideally suited
for the lower income market where cash remittances have the highest need and
appreciation.  <i>Smart Padala</i> has been launched in collaboration with
Banco de Oro, a Philippine financial institution, as well as partnerships with
several internationally-licensed remittance companies (e.g., CBN, Travelex) and
domestic encashment centers (e.g., McDonald&#146;s, 7-Eleven, Seaoil and Tambunting
Pawnshops). <i> Smart Padala</i> is one of the innovative services emanating
from Smart&#146;s <i>Smart Money</i> platform.  </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Due
to the high level of text messaging service usage, we believe that the
Philippine market is well suited for text-based informational and e-commerce
services.  Our current approach is to continue maximizing our GSM, or 2G,
services and also offer General Packet Radio Service, or GPRS or 2.5G, to
service increased demand for bandwidth-intensive applications.  GPRS allows
data transfer at an average speed of up to 115 kilobits per second.  </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
text-indent:0in' style="margin-top:0;margin-bottom:0">In addition, we continue to upgrade our network to Enhanced
Data for GSM Evolution, or EDGE.  EDGE is a technology that would further
increase the speed and data capability of our GSM network.  </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The NTC is currently expected to
issue draft guidelines regarding the issuance of 3G licenses in the Philippines in
the near future.  However, in light of
the limited acceptance of 3G technology in other markets in the world where 3G
services have been offered, as well as the significant expenses involved in any
potential future 3G roll-out, we currently expect that text-based informational
and e-commerce services using existing GSM and GPRS services, particularly text
messaging, will remain more popular in the Philippines in the foreseeable
future.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Rates and Discounts</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Our current policy is to
recognize a prepaid subscriber as &#147;active&#148; only when the subscriber activates
and uses the SIM card and reloads at least once during the month of initial
activation or in the immediate succeeding month.  For example, if a customer
activated a SIM card in April 2004 but had not reloaded by May 31, 2004, this
customer would not be counted as a subscriber.  Subscribers can reload their
air time by purchasing prepaid &#147;call and text&#148; cards that are sold in
denominations of Php300, Php500 and Php1,000, or by purchasing additional air
time &#147;over the air&#148; via <i>Smart</i> <i>Load</i> in smaller denominations of
Php30, Php60, Php115 and Php200; and by receiving loads of Php2, Php5, Php10
and Php15 via <i>Pasa</i> <i>Load</i>, or through their handsets using <i>Smart
Money</i>.  Reloads have validity periods ranging from one day to two months,
depending on the amount reloaded.  A prepaid cellular subscriber is
disconnected if the subscriber does not reload within four months after the
full usage or expiry of the last reload.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">Prior to June 2004, a prepaid cellular subscriber was
recognized as an active subscriber when that subscriber activated and used the
SIM card in the handset, which already contained Php50 of pre-stored air time
(reduced from Php100 in April 2004).  The rationale for the change in our
policy in June 2004 for the recognition of active prepaid subscribers stems
from our observance of &#147;SIM-swapping&#148; activities in the market beginning
February 2004.  &#147;SIM-swapping&#148; refers to the promotional activity wherein
subscribers can exchange their current prepaid SIM card for another operator&#146;s
SIM card at no cost to the subscriber.  We believe that these activities have
given rise to a situation where certain subscribers may swap their SIM cards
between mobile operators upon full usage of the pre-stored air time, which,
without the adjustment to subscriber recognition, may have led, based on the
approach used in the past, to an overstatement of our prepaid subscriber base.
In May 2005, we terminated our &quot;SIM-swapping&quot;
promotions.  As a result, we expect our churn rates to increase significantly
in the next few months as the subscribers acquired through &#147;SIM-swapping&#148; leave
the system. </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Smart Buddy</i>
and Piltel&#146;s <i>Talk &#145;N Text</i> prepaid cards are sold in denominations of
Php300, Php500 and Php1,000, which include 33, 83 and 250 free text messages,
respectively.  The stored value of a prepaid card remains valid for a period of
two months from the time a subscriber activates the card.  On May 11, 2003, we
introduced <i>Smart Load </i>and<i> Talk &#145;N Text Load</i>, an &#147;over-the-air&#148;
electronic loading facility designed to make reloading of air time credits more
convenient for, and accessible to consumers.  These over-the-air reloads come
in the following denominations and corresponding expiration periods:</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:80.82%;margin-left:63.9pt;border-collapse:collapse'>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:10.35pt'>
 <p align=center style=';text-align:center;
 line-height:normal' style="margin-top:0;margin-bottom:0"><b>Denomination</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.35pt'>
 <p align=center style=';text-align:center;
 page-break-after:avoid;border:none' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:10.35pt'>
 <p align=center style=';text-align:center;
 page-break-after:avoid;border:none' style="margin-top:0;margin-bottom:0"><b>Load
 Expiry</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.35pt'>
 <p style='margin-right:53.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:10.35pt'>
 <p style='margin-right:53.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Equivalent Values</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:43.7pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php30</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">3 days</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:43.7pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">30 text messages or 4 local call minutes</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php60</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">6 days</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:43.7pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">60 text messages or 8 to 9 local call minutes</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Php115</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12 days</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:43.7pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">115 text messages or 15 to 17 local call minutes</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">Php200</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">30 days</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:43.7pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">200
 text messages or 26 to 30 local call minutes</p>
 </td>
 </tr>
</table></center></div>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Smart
</i>and <i>Talk &#145;N Text Loads</i> were
followed in January 2004 with <i>Pasa Load</i>, a derivative service allowing
prepaid subscribers to transfer even smaller denominations to other prepaid
subscribers for a charge of Php1.00 per transfer.  <i>Pasa Load</i> comes in
denominations of Php2, Php5, Php10 and Php15, all carrying a one-day load
expiry.  <i>Smart Buddy</i> subscribers who reload other <i>Smart Buddy</i> or <i>Talk
&#145;N Text</i> subscribers via <i>Pasa Load</i> are charged Php1.00.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Beginning
January 2004, <i>Smart Buddy</i> subscribers pay the following air time rates
per minute: (a) Php6.50 for Smart-to-Smart and Smart-to-<i>Talk &#145;N Text</i>
subscribers; and (b) Php7.50 for Smart-to-other mobile operators, fixed lines
and national long distance calls.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Prior
to January 2004, <i>Smart Buddy</i> subscribers paid a rate of Php8.00 per
minute for calls made during peak hours and Php4.00 per minute for calls made
during off-peak hours, regardless of whether the calls were made within the
Smart network or to other mobile operators&#146; networks.  From October 25 to December 31, 2003,
national long distance calls were charged at Php11.00 per minute for peak hours
and Php7.00 per minute for off-peak hours.  Previous to that date, <i>Smart
Buddy</i> subscribers paid varying national long distance rates depending on
the destination of the call.</p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Beginning January 25, 2004,<i>
Smart Gold </i>launched its flat rate and consumable plans as follows:</p>

<p style='line-height:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Flat Rate (regular plans) Plans
are available with monthly service fees ranging from Php500 to Php9,000 with
varying amounts of free air time and text messages and different rates beyond
the free minutes and text messages, depending on the monthly service fee.
Monthly service fees for these plans are applicable only to local calls and
text messages.  All other services are billed on top of the monthly service
fee; and</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">_</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Consumable plans are available
with monthly service fees ranging from Php800 to Php8,000 with different
amounts of free air time and text messages and different rates beyond the free
minutes and text messages.  Subscribers to these plans may apply their monthly
service fees to all voice calls, text messages (both local and international)
and value-added services.</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Under both types of plans, the
rates for calls to other mobile operators, landlines and NDD calls are Php1.00
higher than calls within the Smart network.</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">From
January 1, 2002 to January 24,
 2004, <i>Smart Gold</i> subscribers
could choose from seven different subscription plans with monthly services fees
ranging from Php500 to Php3,500 with different amounts of free air time and
text messages and different rates beyond the free minutes and text messages.
Under each of these plans, calls during peak hours and to other mobile
operators, landlines and NDD calls were charged at higher rates per minute than
calls within the Smart network.</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Prior to January
 1, 2002, <i>Smart Gold</i> offered the
following monthly air time plans: Php600, Php1,200, Php1,800, Php3,000 and
Php4,000.  Subscribers who enrolled in these plans prior to January 1, 2002
remained on these plans following introduction of the plans described above.</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On January 25, 2004, <i>addict
mobile</i> began offering flat rate plans similar to the ones launched for <i>Smart
Gold</i> on the same day with monthly service fees ranging from Php500 to
Php3,500 with different amounts of free air time and text messages and
different rates beyond the free minutes and text messages.  Under each of these
plans, calls to other mobile operators and landlines are charged at higher
rates per minute than calls within the Smart network.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">From April 12,
 2003 to January 24, 2004, <i>addict
mobile</i> offered seven different subscription plans with monthly services
fees ranging from Php500 to Php3,500 with different amounts of free air time
and text messages and different rates beyond the free minutes and text
messages.  Under each of these plans, calls during peak hours to other mobile
operators, landlines and NDD calls were charged at higher rates per minute than
calls within the Smart network.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">Smart
is permitted to adjust its cellular air time and national direct dial rates
according to changes in the peso-to-U.S. dollar exchange rate.  Under the
authorization granted to Smart by the NTC, Smart is permitted to increase and
is required to decrease its air time and national direct dial rates by 1% for
every Php0.25 change in the exchange rate relative to a base rate of Php24.726
to US$1.00.  However, Smart has not implemented any foreign currency
adjustments to its rates since November 4, 1998 because of the concern that
increased rates may result in decreased usage by its subscribers.</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">All
Smart subscribers pay an international
direct dialing rate of US$0.40 per minute.  This rate applies to 201
destinations, including the United States, Hong Kong, Japan, Singapore, the United
 Kingdom and the United Arab Emirates.  Smart charges US$0.98 per minute for 27 other destinations such as Afghanistan
and Cuba and US$2.18 per minute for another ten destinations such as East Timor and
the Falkland Islands.  </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Charges for point-to-point text messages beyond the
allotted free text messages are as follows:</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
for <i>Smart Buddy,</i> <i>addict
mobile</i> and <i>Smart Kid prepaid</i> subscribers, Php1.00 per message; and</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
for <i>Smart Gold</i> and <i>Smart
Infinity</i> subscribers, Php0.50 or Php1.00 per message, depending on air time
plan.</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Smart Buddy,</i>
<i>Smart Gold</i> and <i>addict mobile</i><i> </i>subscribers pay the same
charges for SMS-based value-added services, as follows:</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:50%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Php15.00 per message for
international text for <i>Smart Buddy</i> subscribers and Php10.00 per message
for international text under the new <i>Smart Gold</i> plans and for <i>addict
mobile</i> and <i>Smart Infinity</i> subscribers;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:50%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Php2.50 per message for e-text and
information-on-demand services, such as news, stock and entertainment updates;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Php15.00 per download of ring tones
and logos;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Php2.50 per Mobile Banking and <i>Smart
Money</i> transaction, such as balance inquiry and fund transfer; and</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Php10.00 per subscription
download.  Daily subscription of logos, ringtones:  Php5.00 per logo or
ringtone for <i>addict mobile</i> and <i>Smart Kid</i>, and Php10.00 for other
brands</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">For multimedia messaging service,
or MMS, and wireless application protocol, or WAP, services, the charges are as
follows:</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Php5.00 per person-to-person MMS
still and animated images, Php3.00 for <i>addict mobile</i> and <i>Smart Kid</i>
and Php5.00 for other brands; </p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:0in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Php15.00 per download of pictures,
greeting cards, polyphonic ring tones and traffic shots;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Php2.50 per MMS for e-text and
information-on-demand services (such as news, stock and entertainment updates)
Php5.00 for <i>addict mobile</i> and <i>Smart Kid</i> and Php10.00 for other
brands;</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Php2.50 per transaction when
surfing on the Smart WAP portal depend on the type of service, if
information-based, Php5.00 for <i>addict mobile</i> and <i>Smart Kid</i> and
Php10.00 for other brands; if personalized-based, (logo or ringtones), Php15.00
per download for all brands; and</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:0in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Php0.25 per kilobyte when surfing
outside the Smart WAP portal.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">For voice mail retrieval, all
Smart subscribers are charged Php6.50 per minute.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
addition to enjoying the same tariffs as <i>Smart Gold</i> subscribers, <i>addict
mobile</i> subscribers are allowed to apply their allocated free credits on
their choice of data and value-added services.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Piltel's
<i>Talk 'N Text</i> prepaid cards are sold in the same denominations and offer
the same international direct dialing rates as <i>Smart Buddy </i>prepaid cards
at US$0.40 per minute to all destinations.  In October 2003, Piltel implemented
an all-day/all-night flat rate of Php9.50 per minute for local calls, calls to
other network and national long distance calls replacing the Php12.00 per
minute during peak hours and Php8.00 per minute during off-peak hours.  In
January 2004, this flat rate was further reduced to Php6.50 per minute while
the rate for <i>Talk &#145;N Text</i> to <i>Talk &#145;N Text</i> calls was reduced to a
flat rate of Php5.50 per minute from Php6.50 per minute.  The same rate of Php5.50
per minute is charged for voice mail retrieval.  <i>Talk &#145;N Text </i>subscribers
are charged Php1.00 for a regular text message in excess of free text
allocations while for value added services, such as text games, logo and ring
tone downloads are charged within a range of Php2.50 to Php15.00 per message.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On
March 11, 2005, Smart launched the <i>Smart 258 Unlimited
Call and Text</i> promotion pursuant to which Smart prepaid subscribers such as
<i>Smart Buddy, addict mobile prepaid, Smart Kid prepaid</i> and <i>Talk N&#146;
Text</i> nationwide had the option for the duration of the promotion to avail
of unlimited on-network (Smart-to-Smart) voice calls or unlimited on-network
(Smart-to-Smart) text messaging service.  The <i>Smart 258 Unlimited Call</i> promotion covered
only on-network (Smart-to-Smart) voice calls for Php115 with a validity of 10
days.  To initiate a <i>Smart 258 Unlimited
Call</i>, the subscriber had to send a text message of the called party&#146;s
cellphone number to a designated number.  Both parties then received a call
back to set-up the call.  Off-network calls, all text messaging (on-net and
off-net) and value-added service downloads were not part of this promotion and
were charged at prevailing rates.  On the other hand, <i>Smart 258 Unlimited Text</i> covered only
on-network (Smart-to-Smart) text messaging service for Php60 with a validity of
six days.  Off-network text messages, all voice calls (on-net and off-net) and
value-added service downloads were not part of this promotion and were charged
at prevailing rates.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On April 21, 2005, Smart
reinstituted the <i>Smart 258</i> <i>Unlimited
Call </i>and <i>Text</i> promotions for another 30 days with the following
modifications:</p>

<p style='punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other;
border:none' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;
     the <i>Smart 258</i> <i>Unlimited Call</i> Php115 load
was valid for seven days with a maximum call duration of three minutes;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;
punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:0in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the <i>Smart 258</i> <i>Unlimited Text</i> Php60 load
was valid for four days; and</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:0in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
subscribers could avail themselves
of <i>Smart 258</i> <i>Unlimited Call</i> and <i>Text</i>
simultaneously.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
sell our cellular services primarily through a network of independent dealers
that generally have their own retail networks, direct sales forces and
sub-dealers.  These dealers include major distributors of cellular handsets.
We currently have six major dealers that carry out distribution throughout the Philippines.
On December 1, 2002, Smart purchased the assets of Telecommunications
Specialists, Inc., or TSI, a major dealer that used to account for more than
half of our sales of prepaid air time cards, and integrated TSI&#146;s employees
following the acquisition.  Account managers from our dealer sales force manage
our dealer network and regularly update these dealers on our upcoming marketing
strategies, promotional campaigns and product development.  With the introduction of <i>Smart Load</i> and <i>Talk
&#145;N Text Load</i> in May 2003, Smart and Piltel moved into a new mode of
distribution.  These over-the-air reloads, which were based on the &#147;sachet&#148;
marketing concept of consumer goods such as shampoo and ketchup, required a
distribution network more comparable to those of soft drink and beer
distributors.  Starting with just 50,000 outlets when it was launched, <i>Smart
Load</i>&#146;s distribution network now encompasses over 700,000 retail agents, 90%
of which are micro businesses (e.g. neighborhood stores, individuals acting as
roving agents).  With the prepaid reloading distribution network now extended
to corner store and individual retailer levels and minimum reloading
denominations down to US$0.50, Smart prepaid service became even more
affordable to subscribers, thus attracting new subscribers in previously
underserved segments of the market.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">For
prepaid services, we provided discounts to dealers for prepaid phone kits, air
time cards and over-the-air reloads sold.  Beginning August 1, 2002, Smart and
Piltel reduced the maximum discount to dealers for prepaid phone kit sales from
a range of Php1,000 to Php1,300 per unit sold in the form of prepaid &#147;call and
text&#148; cards (depending on the volume purchased) to Php800 in cash per prepaid
phone kit sold.  An additional 1% rebate was given on cash purchases.  Air time
cards and over-the-air reloads are sold to distributors at volume discounts
determined by the value of the cards purchased by the distributors.
Commissions for air time cards sold range from 8% to 10% while commissions on
over-the-air reloads range from 4% to 5%.  Air time cards cannot be returned or
refunded and normally expire within six to 12 months after release from the
Smart warehouse.  For postpaid services, we pay dealer commissions based on the
air time plan sold.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Satellite and VSAT</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Overview</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">We currently provide satellite
and VSAT services through Mabuhay Satellite and Telesat.  ACeS Philippines,
our satellite phone service provider, started to roll out fixed satellite
terminals in the last quarter of 2001.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Mabuhay Satellite</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">We
currently own 67% of Mabuhay Satellite, which is engaged in the control and
operation of the Agila II satellite.  Commencing commercial operations in
January 1998, Agila II is the Philippines' first communications satellite.  Mabuhay Satellite
leases satellite space segments in both the C and Ku bands on the Agila II.
Through Agila II, Mabuhay Satellite also offers internet backbone access, video
and data broadcasting, and bandwidth-on-demand, facilitating communication links
between telecommunications, broadcast and other public utility companies
operating in the Asia-Pacific region.  See &#147;Item 5. Operating and Financial
Review and Prospects &#150;&#150; Critical Accounting Policies &#150;&#150; Investments&#148; and <i>Note
8 &#150; Investments</i> to the accompanying consolidated financial statements in
Item 18 for a discussion of our investment account in Mabuhay Satellite.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Telesat</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">We currently own 94.4% of Telesat which operates a
nationwide communications satellite network using VSAT technology.  Telesat
offers voice, facsimile and data transmission services throughout the Philippines,
including areas that are underserved or unserved by local fixed line operators.
</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Using VSAT technology, we also provide the following
services:</p>

<p style='text-indent:.5in;line-height:7.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
point-to-multipoint data transmission
services, usually for intercompany communication for corporate customers;</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
private point-to-point service;
and</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
connectivity for the cell sites of
our wireless network in outlying locations.</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
lease transponder capacity on the Agila II to provide VSAT services.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>ACeS
</i><i>Philippines</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
currently own 100% of ACeS Philippines, which owns approximately 20.23% of
AIL.  AIL aims to develop and implement a satellite-based communications system
to provide services to users in the Asia-Pacific region through the Garuda I
Satellite, or ACeS System and ACeS Service.  AIL has entered into
interconnection agreements and roaming service agreements with PLDT and other
major telecommunications operators that will allow ACeS subscribers to access
GSM terrestrial cellular systems in addition to the ACeS system.  Further, AIL
has an Air Time Purchase Agreement, or ATPA, with National Service Providers,
or NSPs, in Asia, including PLDT.  For further discussion of this
ATPA, please see <i>Note 16 &#150; Related Party Transactions</i> and <i>Note 21 &#150;
Contractual Obligations and Commercial Commitments</i> to the accompanying
consolidated financial statements in Item 18.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Revenues</i></p>

<p style='text-indent:.5in;line-height:8.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our satellite and VSAT service revenues consist of:</p>

<p style='text-indent:.5in;line-height:8.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
lease payments from the rental of
Mabuhay Satellite&#146;s C-band and Ku-band transponders; </p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
revenues generated from Telesat&#146;s
nationwide satellite network; and</p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
revenues generated from ACeS
Philippines&#146; satellite phone service.</p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Rates</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Mabuhay
Satellite leases its transponders to third parties at an average annual rates
of approximately US$1.0 million and US$0.7 million for its C-band and Ku-band
transponders, respectively.  Telesat provides its VSAT services on a cost plus
mark-up basis.  ACeS Service mobile subscribers are charged Php13.84 per minute
for local and cell-to-cell calls and for national direct dial services while
residential subscribers are charged a peak-hour rate of Php13.00 per minute and
an off-peak hour rate of Php8.00 per minute for domestic calls regardless of
destination.  For ACeS System public calling offices, callers are charged
Php4.50 and Php7.00 per minute for calls terminating to fixed line and cellular
networks, respectively.  Rates for international long distance calls, depending
on the country of termination, ranging from US$0.35 per minute for frequently
called countries to US$0.85 per minute for less frequently called countries.</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0"><a name="_Toc75779203">Fixed Line</a></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
provide local exchange, international long distance, national long distance,
data and other network and miscellaneous services under our fixed line business
segment.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Local Exchange Service</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Overview</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our
local exchange service, which consists of our basic voice telephony business,
is provided primarily through PLDT.  </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table summarizes key measures of our
local exchange service segment as at and for the years ended December 31, 2004, 2003 and 2002:</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=5 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2002</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Number of fixed lines
 in service (at year-end)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,152,027</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,185,951</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,188,612</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net additions
 (reductions)</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(33,924)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2,661)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14,530</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Growth rate </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2%)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-top:0in;margin-right:6.45pt;
 margin-bottom:0in;margin-left:4.3pt;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1%</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Number of fixed line employees (at year-end)</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9,692</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,518</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,351</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Number of fixed lines in
 service per employee</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right' style="margin-top:0;margin-bottom:0">222</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right' style="margin-top:0;margin-bottom:0">208</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right' style="margin-top:0;margin-bottom:0">177</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Consolidated local exchange
 service revenues (in millions)</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right' style="margin-top:0;margin-bottom:0">Php20,606</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right' style="margin-top:0;margin-bottom:0">Php20,728</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right' style="margin-top:0;margin-bottom:0">Php21,345</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Growth rate</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right' style="margin-top:0;margin-bottom:0">(1%)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-top:0in;margin-right:5.95pt;
 margin-bottom:0in;margin-left:2.9pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right' style="margin-top:0;margin-bottom:0">(3%)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-top:0in;margin-right:5.95pt;
 margin-bottom:0in;margin-left:2.9pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-top:0in;margin-right:5.95pt;
 margin-bottom:0in;margin-left:2.9pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Local exchange service
 revenues as a percentage of total service revenues</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right' style="margin-top:0;margin-bottom:0">17%</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">20%</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.95pt;text-align:right' style="margin-top:0;margin-bottom:0">26%</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
also provide local exchange services through our subsidiaries Clark Telecom,
Subic Telecom, Maratel and Piltel.  Together, these subsidiaries account for
approximately 3% of our consolidated fixed lines in service.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">We
regularly adjust our rates and introduce new products and services in an effort
to increase our number of subscribers, improve our churn management efforts and
minimize our credit risk exposure.  Since 1999, we have launched a prepaid
fixed line service, introduced additional value-added services, introduced
initiatives aimed at increasing subscription in areas where we have excess
capacity and reduced our installation fees, as described below under &quot;&#151;
Rates.&quot;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Initially intended as an alternative affordable
telephone service for consumers under difficult economic conditions, our
prepaid fixed line services now form an important part of PLDT&#146;s overall churn
and credit risk exposure management and subscriber retention strategy.  </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Rates</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">As
at December 31, 2004, basic monthly charges for our local exchange service
in the Metropolitan Manila area were Php663.78 for a single-party residential
line and Php1,383.62 for a single business line.  Monthly charges vary
according to the type of customer (business or residential) and location, with
charges for urban customers generally being higher than those for
rural/provincial customers.  In July 2003, we launched the Telegusto promotion
waiving installation charges up to December 31, 2003
to encourage subscriber growth.  Installation charges amount to Php1,200 for
residential customers and Php1,500 for business customers.  Other than basic
monthly charges, we do not charge our postpaid subscribers for local calls.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Pursuant
to a currency exchange rate mechanism authorized by the NTC, we adjust our
monthly local exchange service rates according to changes in the peso-to-U.S.
dollar exchange rate.  Under the authorization granted to us by the NTC, we are
permitted to increase and are required to decrease these rates by 1% for every
Php0.10 change in the exchange rate relative to a base exchange rate of Php11
to US$1.00.  During 2004, we implemented six upward and one downward
adjustments in our monthly local exchange service rates.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">In
the first quarter of 2005, House Bill No. 926 was filed and is now pending in
the House of Representatives of the Philippines.  The proposed bill provides
for the cancellation of the currency exchange rate mechanism currently in
place.  If this bill is passed into law or if the NTC issues guidelines to
change the basis of the currency exchange rate mechanism, our ability to
generate U.S. dollar linked revenues from our local exchange business could be
adversely affected. </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Effective
January 1, 2003, local access charges for cellular subscribers&#146; calls
that terminate to our fixed line subscribers increased from Php2.00 per minute
to Php2.50 per minute, and was further increased to Php3.00 per minute
effective January 1, 2004.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">A
prepaid fixed line subscriber is recognized as an active subscriber when that
subscriber activates and uses a prepaid call card.  Prepaid fixed line
subscribers can reload their accounts by purchasing call cards that are sold in
denominations of Php500, Php300 and Php150.  Reloads are valid for two months
for the Php500 and Php300 card.  The lower denomination Php150 card, launched
in September 2003, has an account life of 15 days.  A prepaid fixed line
subscriber is disconnected if that subscriber does not reload within one month
for the Php500 card, four months for the Php300 card and 15 days for the Php150
card after the expiry of the last reload.  All sales of prepaid cards, whether
through dealers or through PLDT&#146;s business offices, are non-refundable.  Our
prepaid fixed line customers do not pay a basic monthly charge and are charged
based on usage.  The international and national long distance rates we charge
to our prepaid fixed line customers are similar to the rates we charge to our
postpaid customers.  Prepaid fixed line customers are charged based on usage at
a rate of Php1.00 per minute for local calls.  For a description of these
rates, see &#147;&#151; International Long Distance Service &#151; Rates&#148; and &#147;&#151; National Long
Distance Service &#151; Rates.&#148;  Prepaid phone kits, each containing Php500 worth of
pre-stored call credits, are sold for Php1,900 per unit.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>International Long Distance Service</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Overview</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Our international long distance
service consists of voice and packet-based voice services that go through our
international gateway facilities.  We also generate international long distance
revenues through access charges paid to us by other Philippine
telecommunications carriers for incoming international voice calls that
terminate to our local exchange network.  Our packet-based voice services are
transmitted over our existing traditional circuits: voice over internet
protocol, or VOIP; network of a consortium of dominant carriers in Asia; ATM; and
internet protocol global backbone of PLDT Global.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The
following table shows certain information about our international long distance
business as at and for the years ended December 31, 2004,
2003 and 2002:</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse'>

 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Years Ended
 December 31,</b></p>
 </div>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2002</b></p>
 </div>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>

 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Total call volumes (million minutes)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,348</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,286</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,815</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;margin-right:0in;
 margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-.25in;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Growth rate</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3%</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(19%)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(14%)</p>
 </td>
 </tr>
 <tr style='height:6.3pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt;height:6.3pt'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Inbound call volumes (million minutes)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt;height:6.3pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,192</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt;height:6.3pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,128</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt;height:6.3pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,644</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Growth rate</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3%</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(20%)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(15%)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Outbound call volumes (million minutes)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">156</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">158</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">171</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Growth rate</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1%)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(8%)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2%</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Inbound-outbound call ratio</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14.1:1</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13.5:1</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">15.5:1</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Total international long distance
 service revenues (in millions)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php12,804</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php12,767</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php10,637</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Growth rate</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">20%</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(9%)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">International long distance service
 revenues as a percentage of total service revenues</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11%</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12%</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13%</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">International
long distance service historically has been a major source of revenue.
However, due to the steep decline in inbound termination and collection rates
and intense competition, revenues derived from our international long distance
service had been declining through the end of 2002.  We adopted a two-pronged
initiative in early 2000 with respect to inbound international service to try
to address this issue.  First, we lowered our inbound termination rates at that
time; by reducing our rates, we reduced the incentive for unauthorized traffic
termination and bypass routings by international simple resale operators, and
therefore were able to recover some lost traffic.  Secondly, we intensified our
efforts to identify and contain unauthorized traffic termination and bypass
through more effective monitoring of our international trunks, leased lines or
local network.  International simple resale operation occurs when a company
rents an international leased line from a Philippine international gateway
operator, aggregates traffic outside the Philippines and carries and terminates
this traffic at the public switch telephone network in the Philippines.
International simple resale can be used to bypass the local access charge
system, which is illegal in the Philippines. </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">We
are pursuing a number of other initiatives to further strengthen our inbound
business.  Through PLDT Global, we aggregate inbound call traffic to the Philippines
at our points of presence and, using our capacity in submarine cable systems
connected to each point of presence, transmit calls to our network.  PLDT
Global is also enhancing the presence of PLDT in other international markets by
offering new products and services such as international prepaid cards, SMS
transit and other global bandwidth services.  We believe this strategy will
help us maximize the use of our existing international facilities, and develop
alternative sources of revenue.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">To
stimulate call volume growth and prevent further erosion in our share of
outbound international call traffic, we have introduced a number of marketing
initiatives, including substantial cuts in international direct dialing rates,
innovative pricing packages for large accounts and loyalty programs for some
customers.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The
table below sets forth the net settlement amounts for international calls
handled by PLDT, by country, for the years ended December 31, 2004, 2003 and 2002:</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Net Settlement</b></p>
 </div>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </div>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2002</b></p>
 </div>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(in
 millions)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:1.3pt;text-align:right;
 line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:1.3pt;text-align:right;
 line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:1.3pt;text-align:right;
 line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='margin-left:.25in;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">United States</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$75</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$52</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$68</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='margin-left:.25in;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Saudi Arabia</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">18</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">15</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='margin-left:.25in;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Japan</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">17</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='margin-left:.25in;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Italy</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='margin-left:.25in;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">United Arab Emirates</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='margin-left:.25in;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Canada</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">15</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='margin-left:.25in;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Hong Kong</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Taiwan</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='margin-left:.25in;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Australia</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:5.75pt'>
 <p align=right style='text-align:right;page-break-after:avoid;
 border:none;padding:0in' style="margin-top:0;margin-bottom:0">64</p>
 </div>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:5.75pt'>
 <p align=right style='text-align:right;page-break-after:avoid;
 border:none;padding:0in' style="margin-top:0;margin-bottom:0">77</p>
 </div>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:5.75pt'>
 <p align=right style='text-align:right;page-break-after:avoid;
 border:none;padding:0in' style="margin-top:0;margin-bottom:0">63</p>
 </div>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='margin-left:.25in;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Total</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <div style='border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:5.75pt'>
 <p align=right style='text-align:right;page-break-after:avoid;
 border:none;padding:0in' style="margin-top:0;margin-bottom:0">US$228</p>
 </div>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <div style='border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:5.75pt'>
 <p align=right style='text-align:right;page-break-after:avoid;
 border:none;padding:0in' style="margin-top:0;margin-bottom:0">US$219</p>
 </div>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <div style='border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:5.75pt'>
 <p align=right style='text-align:right;page-break-after:avoid;
 border:none;padding:0in' style="margin-top:0;margin-bottom:0">US$186</p>
 </div>
 </td>
 </tr>
</table></center></div>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Rates</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
adopted the U.S. FCC accounting rate benchmark of US$0.38 per minute for
inbound international calls on January 1,
 2000, which represented a settlement
rate of US$0.19 per minute, for international long distance traffic between the
Philippines and the United States.  Adopting the U.S. FCC benchmark accounting rate one
year ahead of the target date of January
 1, 2001 allowed us pricing flexibility
for inbound call traffic.  Termination rates for inbound calls from the United States
continued to decline through the end of 2002 to levels below the U.S. FCC
benchmark accounting rate under pressure from unauthorized terminations and
bypass operations.  Termination rates for inbound calls from other countries
have also been declining generally.  As at December 31, 2002,
a substantial portion of PLDT&#146;s international inbound traffic terminating on
its fixed line network was charged an average termination rate of approximately
US$0.08 per minute.  PLDT increased termination rates for its international
inbound traffic terminating on its fixed line network to an average of
approximately US$0.12 per minute effective February 1, 2003.
See &#147;Item 8. Financial Information &#150;&#150; Legal Proceedings &#150;&#150; U.S. Federal
Communications Commission, or FCC, Ruling versus Philippine Telecommunications
Companies&#148;, &#147;&#150;&#150; Investigation by U.S. Department of Justice&#148; and <i>Note 25 &#150;
Other Matters</i> to the accompanying consolidated financial statements in Item
18 for further discussion.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Rates
for outbound international long distance calls are based on the type of
service, such as whether the call is operator-assisted or direct dialed.  Our
rates are quoted in U.S. dollars and billed in pesos.  The peso amounts are
determined at the time of billing.  We charge a flat rate of US$0.40 per minute
to retail customers for direct-dialed calls, applicable to all call destinations
at any time on any day of the week.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i>National Long Distance
Service</i></p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Overview</i></p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
national long distance services are provided primarily through PLDT.  This
service consists of voice services for calls made by our fixed line customers
outside of their local service areas within the Philippines and access charges
paid to us by other telecommunications carriers for calls carried through our
backbone network and/or terminating to our fixed line customers.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table shows our national long distance
call volumes and revenues as at and for the years ended December 31, 2004, 2003
and 2002:</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal;border:none;padding:0in' style="margin-top:0;margin-bottom:0">Years Ended
 December 31,</p>
 </div>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2002</b></p>
 </div>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Total call volumes (million minutes)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:9.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,853</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:9.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,016</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:9.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,181</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Growth rate</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:9.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(8%)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:9.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(8%)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:9.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(22%)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Total national long distance service
 revenues (in millions)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:9.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php6,736</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:9.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php6,561</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:9.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php7,818</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Growth rate</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:9.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3%</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:9.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(16%)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:9.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(8%)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">National long distance service revenue
 as a percentage of total service revenues</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:9.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6%</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:9.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6%</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:9.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9%</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Cellular
substitution and the widespread availability and growing popularity of
alternative, more economical, non-voice means of communications, particularly
e-mailing and cellular text messaging, have negatively affected our national
long distance call volumes.  The integration of some of our local exchanges
into a single local calling area, as approved by the NTC, has also negatively
affected our national long distance call volumes, and consequently, our
revenues.  Because of this integration, calls between two exchanges located
within the same province are no longer considered national long distance calls
but are treated as local calls.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">A
substantial portion of our national long distance calls were direct-dialed
calls.  Operator-assisted calls are charged based on a minimum of three minutes
plus operator charges, while direct-dialed calls are charged on a less costly
per minute basis.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Rates</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Rates
for national long distance calls are based on the type of service, such as
whether the call is operator-assisted or direct-dialed.  In line with its move
towards rate simplification, PLDT simplified these rates to a flat rate of
Php4.50 per minute effective November 2,
 2001.  At the same time, PLDT simplified
its rates for calls terminating to cellular subscribers from a range of
Php10.00 per minute to Php16.00 per minute to a uniform rate of Php13.75 per
minute.  Effective March 1, 2003, PLDT increased the rate for calls terminating to other local
exchange carriers from a flat rate of Php4.50 per minute to Php5.00
per minute.  In addition, NDD calls
originating from and terminating to PLDT was also adjusted to Php5.00 per minute from a flat rate of Php4.50 per minute effective June 8, 2003.  PLDT is currently
reviewing a change of the present rate structure from per minute rate charges
to a single fee for unlimited calls.  This is envisioned to make rates for
national long distance calls competitive with VOIP rates and to revitalize
interest in fixed line usage.  Currently, various pricing models are being
studied in respect of this new rate plan.  On February 14, 2005, PLDT launched
a Php10 per call promotion to any PLDT fixed line subscriber nationwide and to
all Smart and <i>Talk 'N Text</i> subscribers.  The promotion introduced a
shift from &#147;per-minute charging&#148; to a single fee for unlimited calls.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
May 2001, PLDT entered into a new interconnection arrangement with the majority
of other local exchange carriers, pursuant to which the originating carrier
pays (1) a hauling charge of Php0.50 per minute for short-haul traffic or
Php1.25 per minute for long-haul traffic to the carrier owning the backbone
network and (2) an access charge of Php1.00 per minute to the terminating
carrier.  In addition, effective January 2002, access charges being paid by
PLDT to cellular operators were reduced to Php4.50 per minute from Php6.50 per
minute it paid for the period from July to December 2001.  Prior to July 2001, PLDT was paying access charges ranging
from a low of Php7.69 to a high of Php10.94 per minute for calls terminating to cellular
subscribers, depending on whether the calls were local or long distance.
PLDT still maintains revenue-sharing arrangements with a few other local
exchange carriers, whereby charges are generally apportioned 30% for the
originating entity, 40% for the backbone owner and the remaining 30% for the
terminating entity.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Data and Other Network Services</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Recognizing the growth potential of data and other
network services, including internet-based services, and in light of their
importance to our business strategy, we have been putting considerable emphasis
on this service segment.  In 2002, this segment registered the highest
percentage growth in revenues among our fixed line services and it continued to
grow in 2003 and 2004.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The upgrading of our network in
recent years through the completion of our domestic fiber optic backbone has
enabled us to offer a growing range of value-added and broadband services.
With this and other technological upgrades, our infrastructure is being
developed from a traditional voice facility to a new packet-switched and
internet-based network that allows faster transmission of voice, video and
data.  Data services we currently provide include:</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
traditional bandwidth service &#151;
high-speed point-to-point domestic and international digital leased line
services;</p>

<p style='margin-left:.25in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
broadband/packet-based/internet
protocol-based services &#151; frame relay, ATM, internet protocol virtual private
network, or IP-VPN, DSL, internet gateway, bandwidth
on demand, or BOD, and wholesale broadband of electrical and optical interfaces
&#150; digital signal level 3, or DS3; STM1, ESCON Fiber Channel, Fast Ethernet; and</p>

<p style='margin-left:.25in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
other switching services
&#151;integrated services digital network, or ISDN, and videocon.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The foregoing services are used for the following:</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
domestic and international
communications;</p>

<p style='margin-left:.25in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
broadband data transmission
services that transmit data, voice and video over a wider range of frequencies
or bandwidth;</p>

<p style='margin-left:.25in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
internet exchange services that
provide ISPs with a primary connection to the global internet to exchange local
traffic generated within the Philippines;</p>

<p style='margin-left:.25in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
private networking services that
use the public internet as a backbone for private interconnection between
different locations;</p>

<p style='margin-left:.25in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
switch-based services, provided
through a fixed bandwidth transmission facility, that allow establishment of a
dedicated connection for the duration of the call; and</p>

<p style='margin-left:.25in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
international packet-based
services, provided through bilateral arrangements and global alliances that
integrate voice, video and data.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
2004, 2003 and 2002, we continued to broaden our service offerings with the
launch of new services and expansion or enhancement of some of the existing
ones.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
May 2002, PLDT launched a pay-per-use dial-up internet service under the brand
name <i>PLDT Vibe</i>, which is available on a postpaid or prepaid basis to
PLDT&#146;s fixed line subscribers.  Charges for this service are Php0.25 per minute
for off-peak hours, which are from 10:01 p.m.
 to 6:00 a.m., and Php0.50 per minute for peak hours, which are
from 6:01 a.m. to 10:00 p.m.  With the launch of <i>PLDT Vibe</i>, PLDT now offers
two residential internet service packages targeting separate markets:  <i>PLDT
Vibe </i>for light to medium internet users and <i>DSL </i>broadband for heavy
internet users.  As at December 31, 2004, the number of PLDT&#146;s fixed line
subscribers for <i>PLDT Vibe </i>stood at 369,435, of which 146,909 were exclusive
postpaid users, 163,585 were exclusive prepaid users, and 58,941 are were both
postpaid and prepaid users, compared to 188,034 as at December 31, 2003, of
which 110,502 were exclusive postpaid users, 58,939 were exclusive prepaid
users, and 18,593 were both postpaid and prepaid users, while the number of <i>DSL</i>
subscribers reached 49,476 and 23,884 as at December 31, 2004 and 2003,
respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
April 2004, PLDT introduced additional enhanced IP-based services under an
umbrella brand <i>IP-Plus</i>, namely, <i>Quality of Service</i>, or <i>QoS</i>,
<i>IP Security</i>, or <i>IP Sec</i>, and <i>Voice</i><i> over Virtual Private
Network</i>, or <i>VoVPN</i>.  With <i>QoS</i>, customers are given priority
service for voice, premium and basic, with the highest priority given to voice
since it requires error-free transmission.  <i>IP Sec</i> optimizes the latest
encryption technology to ensure utmost confidentiality of vital information.  <i>VoVPN</i>
gives customers toll-grade quality without the cost of toll charges.  All these
<i>IP Plus</i> services translate to cost-efficiency, high reliability and
increased security and flexibility.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:40.3pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">In June 2004, PLDT established an Innovation
Laboratory, or <i>Innolab</i>, in Cebu, a show and demonstration room where existing and
potential clients as well as students can have a hands-on experience on various
PLDT products and services designed for our corporate clients.  It also serves
as a venue for testing software applications and computer programs and is
expected to be the starting ground for innovative ideas where new products and
cost-effective solutions may be created.  </p>

<p style='text-indent:40.3pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:40.3pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">On March 10,
 2005, PLDT launched <i>PLDT WeRoam, </i>a
wireless broadband service running on Smart&#146;s nationwide wireless network and
utilizing GPRS, EDGE and Wi-Fi technologies.  <i>PLDT WeRoam </i>enables
businesses to provide their employees with wireless access to their corporate
intranet and the internet over their laptop, anywhere within Smart&#146;s nationwide
wireless network coverage area.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779204"></a><a name="_Toc46082263">Information and Communications Technology</a></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">We conduct our information and communications
technology businesses through our wholly-owned subsidiary ePLDT, which was
incorporated in August 2000 and started commercial operations in February
2001.  ePLDT is a broad-based integrated information and communications
technology company, focusing on infrastructure and solutions for internet
applications, internet protocol-based solutions and multimedia content
delivery.  ePLDT's principal businesses are the operation of: (a) an internet
data center under the brand name <i>Vitro&#153;</i>; (b) call centers through
Vocativ, Parlance and Ventus; and (c) an ISP through Infocom.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i>Infrastructures and
Services</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>Data</i><i> </i><i>Center</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">ePLDT
operates <i>Vitro&#153;</i>, one of the Philippines&#146; first internet data centers.  The Philippine Board
of Investments, or BOI, granted <i>Vitro&#153;</i> pioneer status, which entitles it
to tax and other governmental incentives.  <i>Vitro&#153;</i> is a CISCO-certified
co-location service provider.  <i>Vitro&#153;</i> provides co-location, web and
server hosting, hardware and software maintenance services, website development
and maintenance services, webcasting and webhosting, shared applications, data
disaster recovery and business continuity services, intrusion detection and
internet protocol security services, as well as firewall and managed firewall
services.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Call
Centers</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">ePLDT
is focusing on developing its call center services business, which capitalizes
on the availability of English-speaking labor in the Philippines.
The call center service business is being undertaken through the following
wholly-owned subsidiaries of ePLDT:</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Vocativ which owns and operates a
998-seat call center facility with 749 customer service representatives, or
CSRs, exclusively for clients of a global provider of customer relationship
management services; </p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Parlance which owns and operates a
1,177-seat call center facility with 1,109 CSRs, exclusively for one of the
largest direct-to-home satellite service providers in the United States for
customer support and billing requirements; and</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Ventus, which owns and operates a
400-seat call center facility located in Iloilo province, has commenced full commercial operations in
March 2005.  We currently expect that Ventus will be expanding in Metro Manila
with a 678-seat call center facility to accommodate current and new client
requirements.  This facility is expected to be completed by November 2005.</p>

<p style='text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">ePLDT sold its entire 51% interest
in Contact World, Inc., another call center facility, on June 30, 2003 and assigned its receivables from the same to Service Zone, Inc., a U.S.-based call
center operator, for a total consideration of US$700,000.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Internet and Gaming</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">ePLDT&#146;s internet and gaming business is conducted
through several subsidiaries.  ePLDT&#146;s equity interests in and a brief
description of the businesses of these subsidiaries are as follows:</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
a 99.6% interest in Infocom, one
of the country&#146;s leading ISPs.  Infocom offers consumer prepaid internet access
under the name of <i>WarpSpeed </i>and <i>Speed Tipid</i>, and postpaid
internet access, dedicated dial-up and multi-user dial-up, corporate leased
lines and broadband internet access through <i>DSL</i> or <i>NOW</i> cable
internet, as well as web consulting, development and hosting.  The <i>NOW</i>
cable internet brand was sold on February
 1, 2005;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
a 67.79% interest in DigiPar, an
Internet caf&#233; business which assumed the assets and brand of Netopia Computer
Technologies, Inc., under the brand <i>Netopia</i>.  <i>Netopia</i> is now one
of the largest and fastest growing internet caf&#233; chains in the country with
over 130 branches and over 6,000 work stations.  DigiPar offers high-speed
internet services, including internet advertising, gaming and printing;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
a 51% interest in Digital Paradise
Thailand, Ltd., or DigiPar Thailand, an affiliate of DigiPar offering similar services in
Thailand; and</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
a 60% interest in netGames, Inc., or
netGames, a publisher for Massively Multiplayer Online Game, or MMOG, in the Philippines.
netGames, which was incorporated on June 21, 2004,
is the Philippine licensee of Khan Online, the country&#146;s first full 3D online
game.  netGames commenced full commercial operations in February 2005.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Other Investments</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">ePLDT also currently holds equity interests in the
following entities:</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
mySecureSign, Inc., a wholly-owned
subsidiary of ePLDT and an affiliate of VeriSign, Inc., which issues VeriSign
digital certificates in the Philippines for e-commerce transactions;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
iPlus Intelligent Network, Inc.,
or iPlus, a wholly-owned subsidiary of ePLDT, which provides IT helpdesk/contact center services and terminals for
credit, debit and cash card transactions;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
22.5% interest in Stradcom
International Holdings, the parent company of Stradcom Corporation, which has
an existing concession agreement with the Philippine government for the
modernization of the Philippine Land Transportation Office, including the
computerization of driver&#146;s license issuance, vehicle registration and traffic
adjudication systems; and</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
19.17% interest in BayanTrade
Dotcom, Inc., or BayanTrade, an
e-procurement joint venture established together with six of the Philippines&#146;
leading conglomerates.  Initial shareholding in BayanTrade was originally
20.5%, which was subsequently diluted to 19.17% in August 2004 due to an equity
call to which ePLDT did not subscribe.</p>

<p style="margin-top:0;margin-bottom:0"> </p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779205"></a><a name="_Toc46082265">Wireless Network Infrastructure</a> </p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Cellular</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Through Smart, we operate a digital GSM network.  To
meet the growing demand for cellular services, Smart has implemented an
extensive deployment program for its GSM network covering substantially all of
Metro Manila and most of the other population centers in the Philippines.  In
2004, Smart added 1,399 base stations to its nationwide cellular network,
bringing to 5,303 Smart's total base stations in operation.  Smart has 36
mobile switching centers and 39 text messaging service centers, which have
raised significantly Smart's network capacity to cover approximately 17.3
million subscribers as at December 31, 2004.  </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-top:0in;text-align:left;
text-indent:.5in;line-height:normal' style="margin-top:0;margin-bottom:0">Smart has an operating spectrum of 7.5 Megahertz, or Mhz, in
the 900 Mhz band supporting both its GSM and previously its ETACS network and
17.5 Mhz in the 1800 Mhz band for GSM.  Its dual-band GSM network allows it to
efficiently deploy high capacity 1800 Mhz base transceiver stations in dense
urban areas while its 900 Mhz base transceiver stations can be much more
economically deployed in potentially high growth, but less densely populated
provincial areas.  Spectrum constraints will not affect the Smart&#146;s expansion
plans for GSM in the foreseeable future.  Piltel, on the other hand, has an
operating spectrum of 11.5 Mhz out of the 12.5 Mhz allocated in the 800 Mhz
band. </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-top:0in;text-align:left;
text-indent:.5in;line-height:normal' style="margin-top:0;margin-bottom:0">Due to its access to PLDT&#146;s network assets, Smart has been
able to achieve significant capital expenditure savings, which are understood
to be significantly less, on a per net addition basis, than its current
competitors.  This translates into an improved ability to price competitively
and target the mass market subscriber base in the Philippines, while retaining
profitability.  Based on existing equipment purchase contracts, Smart expects
incremental capital expenditure per net additional subscriber to amount to less
than US$50. </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
coming years will see continued increases in coverage (particularly indoor), as
well as new types of base transceiver station, or BTS, for outdoor, street
level and commercial office coverage.  Smart has introduced the Nokia <i>ConnectSite
</i>GSM system for wider coverage and increased efficiencies in underserved
areas of the Philippines. The new base station equipment called <i>ConnectSite</i>
can be up to 25% more efficient than traditional outdoor cell sites.  Smart is
one of the very first operators in the world to adopt this system.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Smart and Piltel have been co-locating their cell
sites where their base stations are installed.  As at December 31, 2004, 21 of
Smart's mobile switching centers and 110 of Smart's cell sites are housed in
PLDT&#146;s fixed line complexes while 242 of Smart&#146;s cell sites are co-located with
Piltel.  These operational synergies have allowed Smart to reduce switch
installation time from three months to five weeks.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Satellite and VSAT</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Mabuhay
Satellite controls and operates the Agila II satellite, which has 30 C-band
transponders and 24 Ku-band transponders covering the Asia-Pacific region, the
Indian subcontinent and Hawaii.  Of the 54 transponders, six have restricted usage
due to satellite interference.  Through Agila II, Mabuhay Satellite offers
internet service, video and data broadcasting, and bandwidth-on-demand,
facilitating communication links between telecommunications, broadcast and
other public utility companies operating in the Asia-Pacific region.  In
December 2000, Agila II joined the U.S. FCC's &quot;Permitted Space
Station&quot; list, which permits U.S. owned and operated earth stations in
Hawaii to access Agila II for transpacific telecommunications, data, video and
internet-over-satellite traffic and vice versa.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Telesat
operates a national communications satellite network using VSAT technology to
provide voice, facsimile, video and data transmission services to areas in the
country that are still underserved or unserved by local telephone operators.
Telesat leases transponder capacity from Agila II to provide VSAT services such
as multipoint-to-multipoint and point-to-multipoint data transmission services,
private point-to-point service, and connectivity for the cell sites of our
cellular network in outlying locations.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">ACeS
Philippines manages, controls and operates its own satellite gateway and other
ground infrastructure, including a 13-meter feeder-link C-band earth station,
beam congruency antenna and equipment that serve as the primary interface
between the ACeS system and other telecommunications networks.  It uses the
Garuda I satellite to provide digital voice services to ACeS Philippines&#146;
mobile and fixed terminal users within the Asian service area.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779206">Fixed
Line Network Infrastructure</a></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i>Domestic</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
domestic telephone network includes installed telephones and other equipment on
customers&#146; premises, local access lines connecting customers to exchanges,
referred to as &#147;outside plant,&#148; inter-office lines connecting exchanges, and
long distance transmission equipment.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table gives some basic measures of the
development of our domestic telephone network as at December 31, 2004, 2003 and 2002:</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse'>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>As at
 December 31,</b></p>
 </div>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2002</b></p>
 </div>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.25in;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.25in;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Number of central office exchanges</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">183</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">183</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">183</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.25in;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Number of fixed lines in service</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,152,027</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,185,951</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,188,612</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Employees per 10,000 local exchanges in
 service</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">45</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">48</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">56</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
have our own 5,400 kilometer domestic fiber optic backbone, the country's first
telecommunications network using fiber optics in delivering voice, video, data,
and other broadband and multimedia services nationwide.  Our fiber optic
network employs synchronous digital hierarchy technology to improve network
performance and reduce operating costs.  Our network is composed of in-land and
submarine cable installations and is configured in six self-healing rings and
an extension link, allowing route delivery even in the event of link failures.
It has an initial transmission speed of 2.5 gigabits per second and is
connected directly to five existing international submarine cable systems.  We
use <i>CS PLDT</i>, a cable ship which we lease from NTT World Engineering
Marine Corporation pursuant to a five-year Chartered Arrangement Maintenance
Contract to maintain the 2,400 kilometers of submarine cable comprising the submerged
portion of our domestic fiber optic network, or DFON.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">In
2001, we activated a second fiber pair on our existing fiber cable and
installed dense wavelength division multiplexing technology in certain portions
of the network.  The new system serves the areas of Luzon, Visayas and Mindanao
and also serves the international node connecting the Philippines to the
Asia-Pacific Cable Network 2.  The second pair provides an extra 10 gigabits
per second of capacity, or the equivalent of 120,000 voice circuits.  Nortel
Networks supplied us with a suite of optical internet solutions, including a
10-gigabit per second dense wavelength division multiplexing solution based on
Nortel Networks OPTera&#153; Long Haul 1600 Optical Line System.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
2002, we increased our transmission and data network capacities and sold to
Smart certain assets comprising a portion of our digital fiber optic cable
loops from Luzon to Mindanao and certain related equipment.  We further expanded
our transmission and data network capacities in 2003 and 2004.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>International</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">We provide international network services using our
three international gateway switching exchanges.  As at December 31, 2004, our
international long distance facilities allow direct correspondence with 50
countries/territories (representing 79 correspondents) and can reach 360
foreign destinations (via direct and transited routes including breakouts)
worldwide.  We also own interests in submarine and satellite systems, through
which we route most of our international traffic.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The
table below shows the submarine cable systems in which we have interests and
the countries or territories they link:</p>

<p style='text-indent:.5in;line-height:7.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0  style='width:473.4pt;border-collapse:collapse;border-collapse:collapse !msorm'>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:8.1pt'>
 <p style='page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Cable System</b></p>
 </div>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p style='page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Countries Being Linked</b></p>
 </div>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">G-P</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Guam and the Philippines</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Asia-Pacific Cable Network</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Korea, Japan, Hong Kong, Taiwan, Australia, Philippines, Singapore, Malaysia, Indonesia and Thailand</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Asia-Pacific Cable Network 2</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Philippines, Hong Kong, Japan, Korea, Malaysia, Singapore, China and Taiwan</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Transpacific Cable No. 5</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Guam, Japan, Hawaii and the
 U.S.
 Mainland</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">SEA-ME-WE-3</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Japan, Korea, China, Taiwan, Hong Kong, Macau, Philippines, Vietnam,
 Cambodia, Brunei, Malaysia, Singapore, Indonesia, Australia, Thailand,
 Myanmar, Sri Lanka, India, Pakistan, United Arab Emirates, Oman, Djibouti,
 Saudi Arabia, Egypt, Cyprus, Turkey, Greece, Italy, Morocco, Portugal,
 France, UK, Belgium and Germany</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">SEA-ME-WE-2</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">13 countries in South East Asia, the Middle East and Western Europe,
 including Singapore, Indonesia, India, Saudi Arabia, Egypt, Italy, Turkey and
 France</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Asia Pacific</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Hong Kong, Japan, Singapore, Malaysia and Taiwan</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">PacRim East </p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Hawaii and New Zealand</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">M-T </p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Malaysia and Thailand </p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">C-J </p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">China and Japan </p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">North Pacific</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Japan, Alaska and the
 U.S.
 Mainland</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Americas Cable 1</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">U.S. Mainland, U.S. Virgin Islands,
 Brazil, Trinidad and Venezuela</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">China-U.S. Cable</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Japan, China, Taiwan, Korea, Guam and U.S. Mainland</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Columbus II Cable</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">U.S. Mainland, Italy, U.S. Virgin Islands,
 Mexico, Portugal and Spain</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">FLAG Cable</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Japan, Korea, China, Hong Kong, Malaysia, Thailand, India, United Arab
 Emirates, Saudi Arabia, Egypt, Italy, Spain and UK</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">MAT 2 Cable</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Italy and Spain</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">RIOJA Cable</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Spain, UK, Belgium and
 the Netherlands</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">RJK Cable</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Russia, Japan and Korea</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Southern Cross Cable</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">U.S. Mainland, Hawaii, Fiji, Australia and New Zealand</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal;page-break-after:avoid' style="margin-top:0;margin-bottom:0">TAT
 10 Cable</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Germany and the Netherlands</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">TAT 12/13 Cable</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">U.S. Mainland, UK and France</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">TVH Cable</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Thailand, Vietnam and Hong Kong</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">EAC Cable</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Japan, Hong Kong, Korea, Taiwan, Singapore and the Philippines</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">PC-1 and Japan-U.S. Cable</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Japan and the U.S.</p>
 </td>
 </tr>
</table></center></div>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779207"></a><a name="_Toc46082266">Interconnection Agreements</a></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Since the issuance of Executive Order No. 59 in 1993,
which requires non-discriminatory interconnection of Philippine carriers'
networks, we have entered into bilateral interconnection arrangements with
other Philippine fixed line and cellular carriers.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Prior
to July 1, 2001, PLDT retained an origination charge of Php2.00 per minute on
every call terminating to the network of Smart or Globe Telecom, Inc., or
Globe.  From July 1, 2001 to December 31, 2001, Smart and Globe charged PLDT
for local calls at Php6.50 per minute pursuant to an amended interconnection
agreement.  The new arrangement also applied to national long distance calls
originating from PLDT and terminating to the cellular network of either Smart
or Globe removing any distinction between access charges for local calls and
national long distance calls.  For calls originating from PLDT and terminating
to the cellular networks of Smart and Globe, Smart and Globe charged PLDT a
rate of Php4.50 per minute effective January 1, 2002.  Effective January 1, 2004, calls terminating to cellular subscribers originating from fixed line
subscribers were charged a termination rate of Php4.00 per minute, a decrease
from the previous Php4.50 per minute.  </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Effective
 January 1, 2003, access from cellular operators, including Smart and Piltel,
which terminate calls on PLDT&#146;s fixed line network increased from Php2.00 per
minute to Php2.50 per minute, which further increased to Php3.00 per minute
effective January 1, 2004.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Under
a separate agreement between PLDT and PAPTELCO, PLDT is the transit facility
provider between Smart, Globe and PAPTELCO.  PAPTELCO is comprised of 48 local
exchange carriers, or LECs, operating in 129 sites nationwide.  Transit traffic
is an accommodation by PLDT to Smart, Globe and PAPTELCO members where PAPTELCO
members have no direct interconnection with either Smart or Globe.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Effective
 February 1, 2003, international calls terminating to PLDT&#146;s fixed line network
were charged a termination rate of an average of approximately US$0.12 per
minute from the previous rate of an average of approximately US$0.08 per
minute.  Also, international calls terminating on Smart&#146;s and Piltel&#146;s cellular
network were charged a termination rate of an average of approximately US$0.16
per minute, an increase from the previous termination rate of an average of
approximately US$0.12 per minute.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Effective
January 1, 2002, Smart charged a termination rate of Php4.00 per
minute for calls originating from/terminating to another cellular operator&#146;s
network.  For SMS originating from Smart and Piltel and terminating on other
operators&#146; cellular network and for SMS originating from other operators and
terminating on Smart&#146;s and Piltel&#146;s cellular network, the charge is Php0.35 per
message.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779208"></a><a name="_Toc46082267">Licenses and Regulation</a></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">PLDT, Smart and Piltel provide telecommunications
services pursuant to legislative franchises, which expire, in the case of PLDT,
 November 28, 2028, in the case of Smart, March 27, 2017 and, in the case of Piltel, May 14, 2019.  A franchise holder is required to obtain operating
authority from the NTC to provide specific telecommunications services.  These
approvals may take the form of a CPCN or, while an application for a CPCN is
pending, a provisional authority to operate.  Provisional authorities are
typically granted for a period of 18 months.  The Philippine Revised
Administrative Code of 1987 provides that if the grantee of a license or
permit, such as a CPCN or provisional authority, has made timely and sufficient
application for the extension thereof, the existing CPCN or provisional
authority will not expire until the application is finally decided upon by the
administrative agency concerned.  </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">PLDT
operates its business pursuant to a number of provisional authorities and
CPCNs, the terms of which expire at various times between now and 2028.  PLDT's
CPCNs to provide services to most of the Metropolitan Manila area, Davao and
other Philippine cities expired in 2003.  Although some of PLDT's CPCNs and
provisional authorities have already expired, PLDT filed timely applications
for extension of these CPCNs and provisional authorities prior to their
respective expiration dates and is therefore entitled to continue to conduct
its business under its existing CPCNs and provisional authorities pending the
NTC&#146;s decision on these extensions.  While an extension has not yet been
formally granted, PLDT expects that the NTC will grant these extensions;
however, there is no assurance that this will occur.  The period of validity of
some of PLDT&#146;s CPCNs expired on November 28, 2003, coterminous with the term of
its previous franchise under R.A. No. 6146, which has been extended further by
the NTC to November 28, 2028, coterminous with PLDT&#146;s current franchise under
R.A. No. 7082.  Motions to extend the period of validity of the other CPCNs to November 28, 2028 are now pending with the NTC.  See &#147;Item 3. Key Information &#151; Risks
Factors &#151; Risks Relating to Us &#151; Our business is significantly affected by
governmental laws and regulations, including regulations in respect of our
franchises and rates.&#148;  Piltel holds a CPCN to provide a nationwide cellular
telephone service which expires in August 2019.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Smart
operates its cellular, international long distance, national long distance
services and global mobile personal communications via satellite services
pursuant to CPCNs, which will expire upon the expiration of its franchise.
Smart&#146;s franchise is due to expire on March 27, 2017,
25 years after the date on which its current franchise was granted.  Smart
operates international private leased circuits under a provisional authority,
which expired on May 6, 2003.  Smart applied for an extension of this provisional
authority prior to its expiration.  Because PLDT and Smart filed the
applications for extension on a timely basis, we expect that these extensions
will be granted.  However, we cannot assure you that the NTC will grant these
extensions.  If a CPCN has not been issued, the NTC may permit an operator to
provide services pursuant to a provisional authority.  </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Piltel is authorized to provide
virtually every type of telecommunications service, including the transmission
of voice, data facsimile, audio and video and information services, in and
between provinces, cities and municipalities throughout the Philippines.
The franchise, which was last amended on May 14, 1992,
expires on May 14, 2019 and may be extended by a legislative act of the
Philippine Congress.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The
following table sets forth the spectrum system, licensed frequency and
bandwidth allocated to Smart and Piltel:</p>

<p style='text-indent:.5in;line-height:8.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='margin-left:5.4pt;border-collapse:collapse;border-collapse:collapse !msorm'>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:.9pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Carrier</b></p>
 </div>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Spectrum
 System</b></p>
 </div>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Frequency
 Assignment</b></p>
 </div>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Bandwidth</b></p>
 </div>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Smart</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">ETACS/GSM 900</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">897.5-905/942.5-950 Mhz</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">7.5 Mhz</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">GSM 1800</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">1725-1730/1820-1825 Mhz</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">5.0 Mhz</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">1730-1732.5/1825-1827.5 Mhz</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2.5 Mhz</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">1735-1740/1830-1835 Mhz</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">5.0 Mhz</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">1745-1750/1840-1845 Mhz</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">5.0 Mhz</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Piltel</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:48.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">AMPS/CDMA</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">824-835/869-880 Mhz</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">11.0 Mhz</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">845-846.5/890-891.5
 Mhz</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">1.5 Mhz</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Operators
of international gateway facilities and cellular telephone operators, pursuant
to E. O. 109, are required to install a minimum number of local exchange
lines.  Of these new lines, operators are required to install one rural
exchange line for every ten urban exchange lines installed.  Smart and Piltel
were required to install 700,000 and 400,000 lines, respectively, and each has
received a certificate of compliance from the NTC.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:11.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">PLDT,
Smart and Piltel are required to pay various permit, regulation and supervision
fees to the NTC. PLDT, Smart and Piltel are currently engaged in disputes with
the NTC over some of the assessed fees.  For more information on these
disputes, see &#147;Item 8. Financial Information &#150;&#150; Legal Proceedings &#151; Taxation &#151;
NTC supervision and regulation fees, or SRF.&#148;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:11.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">On
May 27, 1998, Smart filed an Urgent Ex Parte Motion and Manifestation regarding
the permit fee in the amount of approximately Php113 million assessed by the
NTC for CPCN 93-482, pertaining to Smart&#146;s Integrated Local Exchange Telephone
Service, Domestic Toll Service and Private Line Service.  Smart contended that
the fee should have been calculated on the basis of the actual local exchange carrier
project cost, and that therefore the fee should be Php70 million.  Although the
NTC has not yet resolved this issue, Smart has already paid Php50 million in
respect of this assessment as of the date of filing of this annual report.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:11.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In a
letter dated January 17, 2002, the NTC requested that Smart pay the following fees
in respect of its CPCNs and provisional authorities:</p>

<p style='text-indent:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align=center>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:96.52%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=left style='margin-bottom:0in;margin-bottom:.0001pt;
 text-align:left;line-height:94%;page-break-after:auto;border:none;padding:
 0in' style="margin-top:0;margin-bottom:0">Case No.</p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;line-height:93%;
 border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Fee</b></p>
 </div>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p style='line-height:94%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style="margin-top:0;margin-bottom:0">92-303</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:.65pt;text-align:right' style="margin-top:0;margin-bottom:0">Php3,750,000</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style="margin-top:0;margin-bottom:0">93-482</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:.65pt;text-align:right' style="margin-top:0;margin-bottom:0">62,510,950</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style="margin-top:0;margin-bottom:0">94-220</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:.65pt;text-align:right' style="margin-top:0;margin-bottom:0">878,830</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style="margin-top:0;margin-bottom:0">96-248</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:17.3pt;text-align:right' style="margin-top:0;margin-bottom:0">6,815,500</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style="margin-top:0;margin-bottom:0">Total</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:.65pt;text-align:right' style="margin-top:0;margin-bottom:0">Php73,955,280</p>
 </td>
 </tr>
</table></center></div>

</div>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Piltel
has also been assessed by the NTC for deficiency SRF.  Based on the latest
computation of deficiency supervision and regulation fees received from the
NTC, which is dated July 6, 2004, the total amount assessed on Piltel stands at
approximately Php1,306 million, including penalty fees amounting to
approximately Php501 million as at September 30, 2003.  Piltel has protested
the assessments in good faith.  Piltel continues to make payments for which it
believes are properly due to the NTC.  On September 30, 2003,
Piltel made a payment to the NTC under protest in the amount of Php9.1
million.  However, the NTC refused to apply this payment to the SRF but instead
applied it to alleged penalties for 1997 prompting Piltel to order a &#147;stop
payment&#148; on the check for the aforementioned amount.  On October 2, 2003,
Piltel filed a complaint for consignation before the regional trial court of
Quezon City, which remains pending.  On February 11, 2005,
Piltel paid under protest the amount of Php559 million in respect of NTC fees
for the period from 1992 to 2004.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">In
order to diversify the ownership base of public utilities, R.A. No. 7925
requires a telecommunications entity with regulated types of services, such as
Smart and Piltel, to make a public offering through the stock exchanges
representing at least 30% of its aggregate common shares by the later of the
following:</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the fifth anniversary of the date
the law became effective; and</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the fifth anniversary of the date
of the entity&#146;s commencement of commercial operations.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">PLDT
and Piltel have complied with this requirement.  Smart believes that it had ten
years from the commencement of its operations, or until August 2004, to conduct
a public offering because the Philippine government has granted franchises to
other telecommunications companies requiring a public offering within ten years
from the later of their commencement of operations or the date on which the
franchise was granted.  Because R.A. No. 7925 provides that any advantage
granted under existing franchises automatically becomes part of previously
granted telecommunications franchises, Smart believes that it was also entitled
to this ten-year period.  However, because Smart has not conducted a public
offering of its shares, the Philippine Congress may revoke the franchise of
Smart.  Moreover, a <i>quo warranto</i> case may be filed against Smart by the
Office of the Solicitor General of the Philippines on the ground of violation of R.A. No. 7925 due to
Smart&#146;s failure to conduct public offering of its shares by August 2004.  In September 2004, Senate Bill No. 1675 was
filed seeking to amend Section 21 of R.A. No.
7925.  The bill seeks to
declare that a telecommunications entity shall be deemed to have complied with
the requirement of making a public offering of its shares if two-third of its
outstanding voting stock are owned and controlled directly or indirectly, by a
listed company.  The bill is currently pending in the Philippine Senate.  PLDT regularly evaluates various strategic options
with respect to its capital structure.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">On
 May 24, 2005, the President signed into law Republic Act No. 9337 amending
certain sections of the National Internal Revenue Code with effect on July 1, 2005.  In particular, the following amendments may negatively impact our
profitability:  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
increase of the income tax rate
for corporations from 32% to 35% effective July 1, 2005,
followed by a reduction to 30% effective January 1, 2009;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
conferment upon the President,
upon the recommendation of the Secretary of Finance, of the power to raise VAT
rate from 10% to 12% effective January 1,
 2006, after any one of the following
conditions has been satisfied;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">a.     VAT collection as a percentage of the GDP
exceeds 2.8% in 2005; or </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">b.     the fiscal deficit as a percentage of GDP,
which represented 3.8% in 2004, exceeds 1.5% in 2005.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
limited claim of input tax credits
to 70% of output tax; and</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
input tax on capital goods spread
evenly over 5 years or estimated useful life, whichever is shorter.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Moreover,
the Philippine Congress is considering five bills which were filed prior to the
signing into law of R.A. No. 9337.  Each of the proposed bill, if passed by
Congress and enacted into law, would impose a 7% or 10% tax on the gross
receipts of cellular operators.  The proposed taxes would apply to both cellular
calls and cellular data revenues and prohibit cellular operators from imposing
additional charges or fees to compensate for the imposition of the proposed
taxes.  In addition, several bills have
also been submitted for consideration by Congress, each of which, if passed by
Congress and enacted into law, would impose a franchise tax at a rate of 7% or
5% tax on gross receipts of all telecommunication companies in lieu of the
currently applicable 10% VAT.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0"><a name="_Toc75779209"></a><a
name="_Toc46082268">Competition</a></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The enactment of the R.A. No.
7925 of the Philippines in March 1995 consolidated the government's various
policy issuances governing the telecommunications industry and reaffirmed,
among other things, the policy of liberalizing the industry and opening up the
telecommunications market to new entrants.  Including us, there are nine major
local exchange carriers, 11 international gateway facility providers, and six
cellular service providers in the country, including one which has not yet
commenced operations.  Many new entrants into the Philippine telecommunications
market have entered into strategic alliances with foreign telecommunications
companies, which provide them access to technological and funding support as
well as service innovations and marketing strategies.  Consequently, we are
facing increasing competition in major segments of the telecommunications
industry, particularly cellular, fixed line and data and other network services
segments.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Cellular
Service</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">There are six operating service providers, namely
Smart, Piltel, Globe, Islacom, Digitel and Express Telecom.  Globe acquired
Islacom (now known as <i>Innove</i>) to form into one operating group while
Smart and Piltel, both being part of the PLDT Group, formed another operating
group.  </p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Competition in the cellular business has intensified
with the availability of affordably priced handsets and the introduction by
competitors of new and improved plans for postpaid subscribers, reduced rates
per minute and aggressive marketing and promotional strategies.  The principal
bases of competition are price, including handset cost, quality of service,
geographic coverage and attractiveness of packaged services.  Smart's network leads the industry in terms of
coverage with 3,957 cell sites as at December 31, 2004
compared to Globe&#146;s and <i>Sun Cellular&#146;s</i> declared cell sites of 3,736 and
1,300, respectively.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
October 2004, <i>Sun Cellular</i> launched its &#147;24/7&#148; service whereby its
prepaid subscribers were offered unlimited calls and text messaging within the <i>Sun
Cellular</i> network over a certain period for a fixed fee (e.g. Php100 for 10
days and Php250 for 30 days of unlimited calls and text messaging).  On&nbsp;March 15, 2005, the
Php250 monthly&nbsp;fee was increased to Php350 while the duration of the
Php100 service was shortened to seven days.  <i>Sun Cellular</i> postpaid
subscribers can utilize a similar feature by adding Php350 per month to their
monthly service fee.  On March 8, 2005, Touch Mobile, a prepaid service
offering of <i>Innove</i>, launched its &#147;Todo Tawag, Todo Text&#148; promotion
wherein Touch Mobile subscribers have the option to avail themselves of
unlimited local calls and text messaging among Touch Mobile subscribers for a
fixed fee.  The promotion covers local voice calls and text messaging only
between Touch Mobile subscribers for Php150 with a validity of 15 days.  On
March 11, 2005, Smart launched &#147;Smart <i>258</i>&#148;,
a promotion open to all Smart and <i>Talk &#145;N Text</i> prepaid subscribers who
wished to avail themselves of unlimited on-network voice calls for Php115 for
10 days and unlimited on-network text messaging service for Php60 for six
days.  On March 22, 2005, Globe launched its unlimited call and text promotion
wherein Globe subscribers can call and text other Globe subscribers for a fee
of Php300.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Cellular
operators are also competing actively against each other in launching
innovative products and value-added services.  The growing range of cellular
products and services now include text messaging, multimedia messaging, voice
mail, text mail, international roaming, information-on-demand, mobile banking, e-commerce,
mobile data and cellular internet access.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Consistent
with industry practice and Smart&#146;s churn management efforts, Smart
&quot;locks&quot; the handsets it sells to its subscribers, rendering them
incompatible with SIM cards issued by competitors.  However, subscribers may have
their handsets &#147;unlocked&#148; by unauthorized parties, for a nominal fee, and
purchase new SIM cards from competing operators or may swap the existing SIM for a SIM of a competing operator for
free, inclusive of pre-loaded air time.
&#147;Unlocking&#148; does not involve significant cost.  Switching to another cellular
operator would, however, result in a change of the subscriber&#146;s cellular
telephone number.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Local Exchange Service</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
concerted nationwide local exchange line build-out by various players, as
mandated by the Philippine government, significantly increased the number of
fixed lines in service in the country and resulted in wider access to basic
telephone service.  The growth of the fixed line market has considerably
weakened due to the surge in demand for cellular services and the general
sluggishness of the national economy.  Nevertheless, we have sustained our
leading position in the fixed line market on account of PLDT's extensive
network in key cities nationwide.  In most areas, we face one or two
competitors.  Our principal competitors in the local exchange market are
Digitel, BayanTel and Globe.  In June 2005, Innove Communications, a
wholly-owned subsidiary of Globe, was granted a national franchise by the NTC
to provide landline service nationwide.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Over
the past couple of years, however, competition among local exchange operators
has reduced as certain operators have faced financial difficulties or have
shifted strategic focus away from the fixed line business to cellular services.
On the other hand, we are facing increasing competition from cellular operators
mainly due to substitution of cellular services for fixed line services.  </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>International Long Distance Service</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Including
us, there are 11 international gateway facility operators in the country.
While we have so far been able to maintain a leadership position in this highly
competitive segment of the industry, in recent years, our market share has
reduced largely as a result of (1) competition from other international gateway
facility operators and international simple resale operators, (2) an increase
in inbound and outbound international long distance calls terminating to and
originating from the growing number of cellular subscribers, and (3) the
popularity of alternative and cheaper means of long distance communications,
such as text messaging, e-mailing and internet telephony, further heightening
the competition.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">With
respect to inbound calls into the Philippines, we adopted the U.S. FCC
benchmark accounting rate of US$0.38 per minute for inbound international calls
which represented a settlement rate of US$0.19 per minute, one year ahead of
the target date of January 1, 2001.  This provided us with increased
flexibility to terminate more U.S. traffic into the Philippines, minimize
unauthorized traffic termination through international simple resale operations
and recover traffic lost due to bypass routings.  We have also established
presence in key cities overseas to identify traffic at its source, maximize the
use of our international facilities and develop alternative sources of
revenue.  Effective February 1, 2003, after lengthy negotiations with
approximately 100 telecommunications operators around the world, we increased
the termination rate with carriers accounting for a substantial portion of our
international inbound traffic terminating on our fixed line network to an
average of approximately US$0.12 per minute.  Prior to the increase in
termination rates, a substantial portion of PLDT&#146;s international inbound traffic
terminating on its fixed line network was charged an average termination rate
of approximately US$0.08 per minute.  See &#147;Item 8. Financial Information &#150;&#150;
Legal Proceedings &#150;&#150; U.S. Federal Communications Commission, or FCC, Ruling
versus Philippine Telecommunications Companies&#148;, &#147;Item 5. Operating and
Financial Review and Prospects &#150;&#150; Results of Operations &#150;&#150; 2004 Compared to
2003 &#150;&#150; Consolidated Operating Revenue &#150;&#150; Fixed Line &#150;&#150; International Long
Distance&#148;, &#147;Item 3. Key Information &#150;&#150; Risks Factors&#150;&#150; Risks Relating to Us &#150;&#150;
Our results of operations have been, and may continue to be, adversely affected
by competition in international long distance service&#148; and <i>Note 25 &#150; Other
Matters </i>to the accompanying consolidated financial statements in Item 18 for
further discussion.  </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">With respect to outbound calls
from the Philippines, we compete for market share through our local
exchange and cellular businesses, which are the origination points of outbound
international calls.  We have also introduced a number of marketing initiatives
to stimulate growth of outbound call volumes, including tariff reductions and
volume discounts for large corporate subscribers.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i>National Long Distance
Service</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Since 2000, our national long
distance service business has been negatively impacted by the growing number of cellular subscribers in the Philippines and the widespread availability and growing popularity of
alternative economical non-voice methods of communication, particularly text
messaging and e-mailing.  In addition, various internet service providers have launched voice
services over the internet to their subscribers nationwide.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">While
national long distance call volumes have been declining, we have remained a
leading provider of national long distance service in the Philippines
due to our significant subscriber base and ownership of the Philippines&#146;
most extensive DFON.  In order to mitigate the decline of our national long
distance revenues, we have renegotiated the interconnection agreements with the
cellular operators to provide the fixed line business a more equitable access
charge arrangement for calls between fixed line and cellular subscribers.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On January 5, 2005, <i>Globelines</i>
launched a plan that offered all its subscribers free NDD calls nationwide.
Digitel's flat rate for Sun-to-Sun calls was being positioned not only as a
strong alternative to cellular, but also as a replacement to the fixed line.
On February 14, 2005, PLDT launched its Php10 per call promotion to any
PLDT fixed line subscriber nationwide and to all Smart and <i>Talk 'N Text</i>
subscribers.  The promotions introduced a shift from the &#147;per minute charging&#148;
to a single fee for unlimited calls.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Data
and Other Network Services</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Another
rapidly growing segment of the industry is the market for data and other
network services. The growth is spurred by the significant growth in
consumer/retail narrowband and broadband internet access, enterprise resource
planning applications, call centers, business process outsourcing, on-line
gaming and other e-services that drive the need for broadband and
internet-protocol based solutions both here and abroad.  Our principal
competitors in this area are Globe/Innove, BayanTel, Eastern Telecommunications
and Digitel.  The principal bases of competition in the data services market
are price, customer service and quality of service.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0"><a name="_Toc75779210"></a><a
name="_Toc46082269"></a><a name="_DV_M5729"></a><a name="_DV_M5730"></a><a
name="_DV_M5731"></a><a name="_DV_M5732"></a><a name="_DV_M5733"></a><a
name="_DV_M5742"></a><a name="_DV_M5743"></a><a name="_DV_M5814"></a><a
name="_DV_M5815"></a><a name="_DV_M4751"></a><a name="_DV_M4753"></a><a
name="_DV_M5824"></a><a name="_DV_M5826"></a><a name="_DV_M5828"></a><a
name="_DV_M5829"></a><a name="_DV_M5830"></a><a name="_DV_M5832"></a><a
name="_DV_M5833"></a><a name="_DV_M4768"></a><a name="_DV_M4769"></a><a
name="_DV_M4770"></a><a name="_DV_M4771"></a><a name="_DV_M4773"></a><a
name="_DV_M4774"></a><a name="_DV_M4775"></a><a name="_DV_M4776"></a><a
name="_DV_M5877"></a><a name="_DV_M4837"></a><a name="_DV_M4840"></a><a
name="_DV_M4841"></a><a name="_DV_M4922"></a><a name="_DV_M4923"></a><a
name="_DV_M4924"></a><a name="_DV_M4949"></a><a name="_DV_M4953"></a><a
name="_DV_M4954"></a><a name="_DV_M4955"></a><a name="_DV_M5991"></a><a
name="_DV_M5993"></a><a name="_DV_M5996"></a><a name="_DV_M5997"></a><a
name="_DV_M5998"></a><a name="_DV_M5999"></a><a name="_DV_M5027"></a><a
name="_DV_M5028"></a><a name="_DV_M5029"></a><a name="_DV_M5030"></a><a
name="_DV_M5066"></a><a name="_DV_M5068"></a><a name="_DV_IPM159"></a><a
name="_DV_IPM160"></a><a name="_DV_IPM161"></a><a name="_DV_IPM162"></a><a
name="_DV_ZIII2255"></a><a name="_DV_IPM163"></a><a name="_DV_M5085"></a><a
name="_DV_M6081"></a><a name="_DV_M6082"></a><a name="_DV_M5101"></a>Environmental Matters</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">We have not been subject to any material fines or
legal or regulatory action involving non-compliance with environmental
regulations of the Philippines.  We are not aware that we are not in compliance in
any material respect with relevant environmental protection regulations.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779211"></a><a name="_Toc46082270">Intellectual Property Rights</a></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">We do not own any material intellectual property
rights apart from our brand names and logos.  We are not dependent on patents,
licenses or other intellectual property which are material to our business or
results of operations, other than licenses to use the software that accompany
most of our equipment purchases.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779212"></a><a name="_Toc46082271">Properties</a></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">We
own four office buildings located in Makati City and own and operate 183 exchanges nationwide, of
which 61 are located in the Metropolitan Manila area.  The remaining 122
exchanges are located in small cities and municipalities outside Metropolitan
Manila area.  We also own radio transmitting and receiving equipment used for
international and domestic communications.  As at December 31, 2004, we had 3,957
cellular cell sites and 5,303 base stations.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">As
at December 31, 2004, our principal properties, excluding property under
construction, consisted of the following, based on book value:</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
58% consisted of cable and
cellular facilities, including our DFON, subscriber cable facilities,
inter-office trunking and toll cable facilities and cellular facilities;</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
25% consisted of central office
equipment, including three international gateway facilities, six pure national
toll exchanges and 15 combined local and toll exchanges, and communications
satellite;</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
9% consisted of land and
improvements and buildings, which we acquired to house our telecommunications
equipment, personnel, inventory and/or fleet;</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1% consisted of information
origination and termination equipment, including, pay telephones and radio
equipment installed for customers use, as well as cables and wires installed
within customers' premises; and</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
7% consisted of other work
equipment.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">For
more information on these properties, see <i>Note 7 &#150; Property, Plant and
Equipment</i> to the accompanying consolidated financial statements in Item
18.  These properties are located in areas being served by our exchanges.  In
our opinion, these properties are in good condition, except for ordinary wear
and tear, and are adequately insured.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">The majority of our connecting lines are above or under
public streets and properties owned by others.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">PLDT's and Smart&#146;s properties are free from any
mortgage, charge, pledge, lien or encumbrance.  However, substantial properties
of Piltel and Mabuhay Satellite and a portion of ePLDT&#146;s property are subject
to liens.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">PLDT
Group has various long-term lease contracts, the bulk of which have lease terms
ranging from two to ten years covering certain offices, warehouses,
telecommunications equipment locations and various office equipment.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc75779213"></a><a
name="_Toc46082272">Item 5.        Operating and
Financial Review and Prospects</a></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>The following discussion and analysis of our financial
condition and results of operations should be read in conjunction with our
audited consolidated financial statements (and the related notes) as at
December 31, 2004 and 2003 and for the years ended December 31, 2004, 2003 and
2002 included elsewhere in this report.  This discussion contains
forward-looking statements that reflect our current views with respect to
future events and our future financial performance.  These statements involve
risks and uncertainties, and our actual results may differ materially from
those anticipated in these forward-looking statements as a result of particular
factors such as those set forth under &quot;Forward-Looking Statements&quot;
and &#147;Item 3. Key Information &#151; Risk Factors&quot; and elsewhere in this
report.  Our audited consolidated financial statements, and the financial
information discussed below, have been prepared in accordance with </i><i>U.S.</i><i>
GAAP.  For convenience, certain peso financial information in the following
discussions has been translated to U.S. dollars at the exchange rate at </i><i>December 31, 2004</i><i> of Php56.341 to US$1.00, as quoted through the Philippine Dealing
System.</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779214"></a><a name="_Toc46082273">Overview</a></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">We are the largest and most diversified
telecommunications company in the Philippines.  We have organized our business into three main
segments which serve as the basis for management&#146;s decision to allocate
resources and evaluate operating performance:</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Wireless</i> &#151; wireless telecommunications services provided by
PLDT&#146;s subsidiaries, Smart and Piltel, our cellular service providers, and
Mabuhay Satellite, ACeS Philippines, and Telesat, our satellite and VSAT
operators;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Fixed Line</i> &#151; fixed line telecommunications services primarily
provided through PLDT.  We also provide fixed line services through PLDT&#146;s
subsidiaries Clark Telecom, Subic Telecom, Maratel, Piltel and BCC, which
together account for approximately 3% of our consolidated fixed lines in
service, (in 2004) and PLDT Global; and</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Information and Communications
Technology</i> &#151; information and
communications infrastructure and services for internet applications, internet
protocol-based solutions and multimedia content delivery provided by PLDT&#146;s
subsidiary ePLDT; call center services provided by ePLDT&#146;s subsidiaries
Parlance, Vocativ and Ventus; internet access and gaming services provided by
ePLDT&#146;s subsidiaries, Infocom, DigiPar and netGames; and e-commerce and
IT-related services provided by other investees of ePLDT, as discussed in <i>Note
8 &#150; Investments </i>to the accompanying consolidated financial statements in
Item 18.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Key
performance indicators and drivers that our management uses for the management
of our business include, among others, the general economic conditions in the Philippines,
our subscriber base, traffic volumes, and interconnection arrangements.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-indent:0in' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><b>Wireless</b></h4>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our
wireless business provides cellular and satellite, VSAT and other services,
with cellular services contributing about 97% and satellite, VSAT and other
services contributing 3% of our wireless service revenues as at December 31,
2004.  Rapid growth in the cellular market has resulted in a change in our
revenue composition and sources of our revenue growth.  Starting 2003, cellular
service has been our major revenue source surpassing fixed line revenues by
five percentage points.  As at December 31, 2004, Smart and Piltel, which
offers service using Smart&#146;s network, had the largest and third largest
cellular subscriber bases, respectively, in the Philippines.  In addition,
Smart&#146;s and Piltel&#146;s subscribers increased by 48% in 2004, resulting in our
aggregate system-wide cellular subscribers outnumbering our fixed line in
service by more than 9 to 1 at the end of 2004.  Cellular data services, which
include all text messaging and text-related services ranging from ordinary text
to value-added services, contributed significantly to our revenue increase.
Cellular service revenues accounted for 56%, 51% and 42% of our total service
revenues for 2004, 2003 and 2002, respectively.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-indent:0in' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><b>Fixed
Line</b></h4>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Our
fixed line business provides local exchange service, international and national
long distance services, data and other network services and miscellaneous
services.  Until 2003, fixed line services have been our major revenue source
contributing 56% and 69% of consolidated service revenues in 2002 and 2001,
respectively.  Although relatively stable in absolute terms, our fixed line
revenues&#146; contribution to total operating revenues have declined to 38% in
2004, largely due to the substantial growth in our wireless business.  Local
exchange revenues have declined slightly owing to shift in subscriber
preference from postpaid to prepaid service.  National long distance revenues
have also been declining largely due a drop in call volumes, and an increase in
the proportion of calls subject to revenue sharing with other carriers.  Mitigating
these declines was the steady growth of our data and other network services
over the recent years.  Recognizing the growth potential of the data and other
network services segment, we have put considerable emphasis on the development
of new packet-switched, data-capable and internet-based networks.
International long distance revenues have declined until 2002 due to lower
inbound call volumes, lower termination rates and increased competition and
substitution, but has increased its contribution to the overall fixed line
revenues in 2003 and 2004 on account of an increase in our average termination
rates in 2003.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><b>Information and Communications Technology</b></h4>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our information and communications technology business
is conducted through our wholly-owned subsidiary, ePLDT, which was incorporated
in August 2000 and started commercial operations in February 2001.  ePLDT&#146;s
principal businesses are the operation of an internet data center under the
brand name <i>Vitro&#153;</i>; three wholly-owned call centers, Vocativ, Parlance
and Ventus, which commenced full commercial operations in March 2005, and
Infocom, an ISP.  As a percentage of our total service revenues, our
information and communications technology service revenues increased to 2% in
2004 from 1% in 2003 and 2002.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0"><a name="_Toc75779215"></a><a
name="_Toc46082274">Critical
Accounting Policies</a></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
consolidated financial statements are prepared in accordance with U.S. GAAP,
which requires management to make estimates and assumptions that affect amounts
reported in our consolidated financial statements and related notes.  In
preparing these consolidated financial statements, we have made our best
estimates and judgments of certain amounts, giving due consideration to
materiality.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
believe the following represent our critical accounting policies under U.S.
GAAP.  The impact and any associated risks relating to these policies in our
business operations are discussed elsewhere in this section.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Revenue Recognition</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
revenue recognition policies require us to make use of estimates and
assumptions that may affect the reported amounts of our revenues and
receivables.  While we believe that our judgments and assumptions are
appropriate and reasonable, significant changes in our judgments and
assumptions may materially affect our reported amounts of our revenues and receivables.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
agreements with domestic and foreign carriers for inbound and outbound traffic
subject to settlements require traffic reconciliations before actual settlement
is done, which may not be the actual volume of traffic as measured by us.
Initial recognition of revenues is based on our observed traffic adjusted by
our normal experience adjustments, which historically have not been material in
our consolidated financial statements.  Differences between the amounts
initially recognized and actual settlements are taken up in the accounts upon
reconciliation.  However, there is no assurance that such use of estimates may
not result to material adjustments in future periods.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Revenues
under a multiple element arrangement specifically applicable to our wireless
business are split into separately identifiable components and recognized when
the related components are delivered in order to reflect the substance of the
transaction.  The fair value of components is determined using verifiable
objective evidence.  Revenue for handset sales is quantified and identified
separately using the residual value method from our cellular service revenue.
</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Estimating Useful Lives of Property, Plant and Equipment</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">We estimate the useful lives of our property, plant
and equipment based on the period over which our assets are expected to be
available for use.  The estimated useful lives of our property, plant and
equipment are reviewed periodically and are updated if expectations differ from
previous estimates due to physical wear and tear, technical or commercial
obsolescence and legal or other limits on the use of our assets.  In addition,
our estimation of the useful lives of our property, plant and equipment is
based on our collective assessment of industry practice, internal technical
evaluation and experience with similar assets.  It is possible, however, that
future results of operations could be materially affected by changes in our
estimates brought about by changes in factors mentioned above.  The amounts and
timing of recorded expenses for any period would be affected by changes in
these factors and circumstances.  A reduction in the estimated useful lives of
our property, plant and equipment would increase our recorded expenses and
decrease our noncurrent assets.  Property, plant and equipment amounted to
Php186,093 million and Php190,217 million as at December 31, 2004 and 2003,
respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Asset
Impairment </p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">U.S.
GAAP requires that an impairment review be performed when certain impairment
indicators are present.  The impairment review first compares the future
undiscounted cash flows expected to be generated from the continued use and
ultimate disposition of the assets with the book value of the assets.  If these
cash flows are not sufficient to recover the book value of the assets, an
impairment charge is recognized based on the comparison between the discounted
value of these cash flows and the book value of the assets.  In addition, our
projections for future cash flows are generally less during periods of reduced
cash flow.  As a result, an impairment charge is more likely to occur during a
period when our operating results are already otherwise depressed.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Purchase
accounting requires extensive use of accounting estimates and judgments to
allocate the purchase price to the fair market values of the assets and
liabilities purchased.  Our business acquisitions typically result in goodwill,
which prior to January 1, 2002, affected our results of operations for the amount of
future period amortization expense.  Since January 1, 2002,
goodwill has been subject to a periodic impairment test and may no longer be
amortized.  Determining the fair value of property, plant and equipment,
investments and intangible assets requires us to make estimates and
assumptions, such as the determination of future cash flows expected to be
generated from the continued use and ultimate disposition of such assets, that
can materially affect our consolidated financial statements.  Future events
could cause us to conclude that property, plant and equipment, investments and
intangible assets associated with an acquired business is impaired.  Any
resulting impairment loss could have a material adverse impact on our financial
condition and results of operations.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The determination of the estimated
future cash flows involves significant judgment and estimations. While we
believe that our assumptions are appropriate and reasonable, significant
changes in our assumptions may materially affect our assessment of recoverable
values and may lead to future additional impairment changes.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Total
goodwill and intangible assets as at December 31, 2004
and 2003 amounted to Php16,561 million and Php15,464 million, respectively.
Total asset impairment charges amounted to Php1,412 million in 2004, Php675
million in 2003 and Php13,279 million in 2002.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Financial
Assets and Liabilities</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">U.S.
GAAP requires that we carry certain of our financial assets and liabilities at
fair value, which requires extensive use of accounting estimates and judgment.
While significant components of fair value measurement were determined using
verifiable objective evidence (e.g., foreign exchange rates, interest rates,
volatility rates), the fair value would differ if we utilized different
valuation methodology.  Any changes in fair value of these financial assets and
liabilities would affect directly our profit and loss and equity.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
fair value of financial assets and liabilities as at December 31, 2004
amounted to Php46,153 million and Php191,923 million, respectively.  Total gain
on debt exchange in 2004 amounted to Php2,620 million.  The fair value of
financial assets and liabilities as at December 31, 2003
amounted to Php39,861 million and Php212,385 million, respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Estimating Allowance for Doubtful Accounts</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">We estimate the allowance for doubtful accounts related
to our trade receivables based on two methods.  The amounts calculated using
each of these methods are combined to determine the total amount we reserve.
First, we evaluate specific accounts where we have information that certain
customers are unable to meet their financial obligations.  In these cases, we
use judgment, based on the best available facts and circumstances, including
but not limited to, the length of our relationship with the customer and the
customer&#146;s current credit status based on third party credit reports and known
market factors, to record specific reserves for customers against amounts due
to reduce our receivables to amounts that we expect to collect.  These specific
reserves are re-evaluated and adjusted as additional information received
affects the amounts estimated.  Second, a general provision is established as a
certain percentage of operating revenues based on the aging profile of
receivables.  This percentage is based on a collective assessment of historical
collection, write-off experience, current economic trends, changes in our
customer payment terms and other factors that may affect our ability to collect
payments. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Full allowance is provided for
receivables from permanently disconnected subscribers and carriers.  Such
permanent disconnections generally occur within 105 days from due date.
Partial allowance is provided for active subscribers and carriers based on the
age status of receivables.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The amounts and timing of recorded expenses for any
period would differ if we made different judgments or utilized different
estimates.  An increase in our allowance for doubtful accounts would increase
our recorded expenses and decrease our current assets.  Provision for doubtful
accounts amounted to Php3,948 million in 2004, Php4,092 million in 2003 and
Php4,160 million in 2002.  The provision for doubtful accounts represented
approximately 3% of our consolidated service revenues in 2004, 4% in 2003 and
5% in 2002.  Trade and other receivables, net of allowance for doubtful
accounts, amounted to Php10,404 million and Php17,087 million as at December 31, 2004 and
2003, respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Acquisitions and Intangible Assets</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Acquisitions
have generally been accounted for as purchases.  Accordingly, the acquisition
of Smart was accounted for using the purchase method of accounting.  The excess
of the total acquisition cost over the fair value of the net assets acquired
was Php23,096 million.  Based on management's review and estimate, Php5,900
million was recorded as the value of customers acquired (Php2,705 million and
Php3,195 million were attributed to Global System for Mobile Communication, or
GSM, and analog subscribers, respectively).  Prior to 2002, the excess of the
total acquisition cost over the fair value of the net assets acquired was
amortized on a straight-line basis over five years.  Starting 2002, the
unamortized balance is reviewed annually for impairment using the fair value
approach.  Purchase accounting requires extensive use of accounting estimates
and judgments to allocate the purchase price to the fair market values of the
assets and liabilities purchased.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Foreign Exchange Revaluation Losses</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">When
we incur unhedged foreign currency-denominated liabilities arising directly
from the acquisition of property, plant and equipment invoiced in a foreign
currency, such as U.S. dollar-denominated loans to finance equipment purchases,
foreign exchange losses on those liabilities are charged or credited to
operations in the current period.  Over the past years, the Philippine peso has
depreciated significantly against the U.S. dollar, resulting in substantial
foreign exchange losses, and has resulted in our incurring net losses for
certain periods.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style="margin-top:0;margin-bottom:0"><i>Investments</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
various interests that we hold in companies are accounted for under three
methods:  consolidation, the equity method and the cost method.  The applicable
accounting method is generally determined based on our voting interest in a
company.  Majority-owned companies are consolidated, 20% to 50% owned companies
are accounted for using the equity method and our investments in companies over
which no significant influence is exercised or in cases where our investments
are temporary, the investments are stated at cost.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Pension Cost and Other Retirement Benefits </i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
determination of our obligation and cost for pension and other retirement
benefits is dependent on our selection of certain assumptions used by actuaries
in calculating such amounts.  Those assumptions are described in <i>Note 17 &#150;
Employee Benefits </i>to the accompanying consolidated financial statements in
Item 18, and include among others, discount rates, expected returns on plan
assets and rates of compensation increase.  In accordance with U.S. GAAP,
actual results that differ from our assumptions are accumulated and amortized
over future periods and therefore, generally affect our recognized expense and
recorded obligation in such future periods.  While we believe that our
assumptions are reasonable and appropriate, significant differences in our
actual experience or significant changes in our assumptions may materially
affect our pension and other retirement obligations.  Unrecognized net
actuarial loss as at December 31, 2004 amounted to Php89 million.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Deferred
Tax Assets</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">We review the carrying amounts of our
deferred tax assets at each balance sheet date and recognize a valuation
allowance to the extent that it is no longer probable that sufficient taxable
profit will be available to allow all or part of the deferred tax assets to be
utilized.  However, there is no assurance that we will generate sufficient
taxable profit to allow all or part of our deferred tax assets to be utilized.
Significant changes in our judgments and assumptions may materially affect the
reported amounts of our valuation allowance and the carrying amounts of our
deferred tax assets.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As
at December 31, 2004 and 2003, our deferred tax assets amounted to Php20,027
million and Php20,712 million, respectively, net of valuation allowance
amounting to Php13,663 million and Php19,590 million, respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Legal Contingencies</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">We are currently involved in various legal
proceedings.  Our estimate of the probable costs for the resolution of these
claims has been developed in consultation with outside counsel handling our
defense in these matters and is based upon an analysis of potential results.
We currently do not believe these proceedings will have a material adverse
effect on our consolidated financial statements.  It is possible, however, that
future results of operations could be materially affected by changes in our
estimates or in the effectiveness of our strategies relating to these
proceedings.  See &#147;Item 8. Financial Information &#151; Legal Proceedings &#151;
Taxation.&#148;  Outstanding provisions to cover these contingencies amounted to
Php5,199 million as at December 31, 2004.</p>

<b><br
clear=all style='page-break-before:always'>
</b>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779216"></a><a name="_Toc46082275">Results of Operations</a></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The
following table shows the contribution by each of our business segments to our
consolidated operating revenues, expenses and net income (loss) for each of the
years ended December 31, 2004, 2003 and 2002.  Most of our revenues are derived
from our operations within the Philippines.  Our revenues derived from outside the Philippines
consist primarily of revenues from incoming international calls to the Philippines.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse;width:100.0% !msorm;border-collapse:
 collapse !msorm'>
 <tr style='height:19.35pt' style='height:19.35pt !msorm'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:19.35pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:19.35pt'>
 <p align=center style='text-align:center;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Wireless</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:19.35pt'>
 <p align=center style='text-align:center;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:19.35pt'>
 <p align=center style='text-align:center;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Fixed Line</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:19.35pt'>
 <p align=center style='text-align:center;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:19.35pt'>
 <p align=center style='text-align:center;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>ICT</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:19.35pt'>
 <p align=center style='text-align:center;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:19.35pt'>
 <p align=center style='text-align:center;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Inter-segment</b></p>
 <p align=center style='text-align:center;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Transactions</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:19.35pt'>
 <p align=center style='text-align:center;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:19.35pt'>
 <p align=center style='text-align:center;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Total</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:.15in' style='page-break-inside:
 avoid !msorm;height:.15in !msorm'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=9 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=center style='text-align:center;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>
 <tr style='height:13.55pt' style='height:13.55pt !msorm'>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:13.55pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">For the year ended December 31, 2004</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:13.55pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:13.55pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:13.55pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:13.55pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:13.55pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:13.55pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:13.55pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:13.55pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:13.55pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='height:.15in' style='height:.15in !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:.15in'>
 <p style='text-indent:9.0pt;line-height:8.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Operating Revenues </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php75,161</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php48,484</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php2,401</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php4,825)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php121,221</p>
 </td>
 </tr>
 <tr style='height:.15in' style='height:.15in !msorm'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p style='text-indent:22.5pt;line-height:8.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Service</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">69,050</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">48,484</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,080</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(4,662)</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">114,952</p>
 </td>
 </tr>
 <tr style='height:.15in' style='height:.15in !msorm'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p style='text-indent:22.5pt;line-height:8.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Non-service</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,111</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">321</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(163)</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,269</p>
 </td>
 </tr>
 <tr style='height:.15in' style='height:.15in !msorm'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p style='text-indent:9.0pt;line-height:8.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Operating Expenses</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">42,769</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">31,909</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,035</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(5,031)</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">72,682</p>
 </td>
 </tr>
 <tr style='height:13.05pt' style='height:13.05pt !msorm'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:13.05pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt;line-height:
 8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net Income (Loss)
 </p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:13.05pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">27,513</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:13.05pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:13.05pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,287</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:13.05pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:13.05pt'>
 <p align=right style=';text-align:right;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(699)</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:13.05pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:13.05pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:13.05pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:13.05pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">28,101</p>
 </td>
 </tr>
 <tr style='height:14.85pt' style='height:14.85pt !msorm'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:14.85pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">For the year ended December 31, 2003</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:14.85pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:14.85pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:14.85pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:14.85pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:14.85pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:14.85pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:14.85pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:14.85pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:14.85pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:.15in' style='height:.15in !msorm'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p style='text-indent:9.0pt;line-height:8.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Operating Revenues </p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">65,183</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">46,820</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,783</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2,586)</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">111,200</p>
 </td>
 </tr>
 <tr style='height:.15in' style='height:.15in !msorm'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p style='text-indent:22.5pt;line-height:8.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Service</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">54,635</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">46,820</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,467</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2,436)</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100,486</p>
 </td>
 </tr>
 <tr style='height:.15in' style='height:.15in !msorm'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p style='text-indent:22.5pt;line-height:8.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Non-service</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,548</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">316</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(150)</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,714</p>
 </td>
 </tr>
 <tr style='height:.15in' style='height:.15in !msorm'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p style='text-indent:9.0pt;line-height:8.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Operating Expenses</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">46,264</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">32,303</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,272</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(3,018)</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">77, 821</p>
 </td>
 </tr>
 <tr style='height:11.7pt' style='height:11.7pt !msorm'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:11.7pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt;line-height:
 8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net Income (Loss)
 </p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:11.7pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13,275</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:11.7pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:11.7pt'>
 <p align=right style=';text-align:right;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,902)</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:11.7pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:11.7pt'>
 <p align=right style=';text-align:right;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(328)</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:11.7pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:11.7pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:11.7pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:11.7pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,045</p>
 </td>
 </tr>
 <tr style='height:14.85pt' style='height:14.85pt !msorm'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:14.85pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">For the year ended December 31, 2002</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:14.85pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:14.85pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:14.85pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:14.85pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:14.85pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:14.85pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:14.85pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:14.85pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:14.85pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:.15in' style='height:.15in !msorm'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p style='text-indent:9.0pt;line-height:8.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Operating Revenues </p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">48,252</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">46,186</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">977</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,584)</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">93,831</p>
 </td>
 </tr>
 <tr style='height:.15in' style='height:.15in !msorm'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p style='text-indent:22.5pt;line-height:8.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Service</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">36,157</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">46,186</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">772</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,429)</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">81,686</p>
 </td>
 </tr>
 <tr style='height:.15in' style='height:.15in !msorm'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p style='text-indent:22.5pt;line-height:8.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Non-service</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,095</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">205</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(155)</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,145</p>
 </td>
 </tr>
 <tr style='height:.15in' style='height:.15in !msorm'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p style='text-indent:9.0pt;line-height:8.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Operating Expenses</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">37,915</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">43,793</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,458</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,364)</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">81,802</p>
 </td>
 </tr>
 <tr style='height:10.35pt' style='height:10.35pt !msorm'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:10.35pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt;line-height:
 8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net Income (Loss)
 </p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:10.35pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,931</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:10.35pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:10.35pt'>
 <p align=right style=';text-align:right;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(11,602)</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:10.35pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:10.35pt'>
 <p align=right style=';text-align:right;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(487)</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:10.35pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:10.35pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:10.35pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:10.35pt'>
 <p align=right style=';text-align:right;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(6,158)</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b>2004 Compared to 2003</b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b>On a Consolidated Basis</b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0"><i>Consolidated
Operating Revenues </i></p>

<p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Largely driven by the continued strong growth of our wireless
business, particularly Smart&#146;s cellular business, our consolidated operating
revenues for 2004 increased by Php10,021 million, or 9%, to Php121,221 million from Php111,200
million in 2003.  The revenue contribution of our wireless business accounted
for 62% of our consolidated operating revenues for 2004, compared to 59% in
2003.  </p>

<p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
following table shows the breakdown of our consolidated operating revenues for
the years ended December 31, 2004 and 2003 by business segment:</p>

<p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse;border-collapse:collapse !msorm'>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=12 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=center style=';text-align:
 center;text-indent:1.55pt' style="margin-top:0;margin-bottom:0"><b>Years Ended
 December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Change</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-top:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=12 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=center style=';text-align:
 center;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Wireless </p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:6.7pt;text-align:right' style="margin-top:0;margin-bottom:0">Php75,161</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">62</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php65,183</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">59</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 5.75pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">Php9,978</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 5.75pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">15</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.45pt' style='page-break-inside:
 avoid !msorm;height:9.45pt !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.45pt'>
 <p style="margin-top:0;margin-bottom:0">Fixed line</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.45pt'>
 <p align=right style='margin-right:6.7pt;text-align:right' style="margin-top:0;margin-bottom:0">48,484</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:9.45pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">40</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:9.45pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">46,820</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:9.45pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">42</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:9.45pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.45pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.45pt' style="margin-top:0;margin-bottom:0">1,664</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:9.45pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:9.45pt'>
 <p align=right style=';margin-right:
 5.75pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style="margin-top:0;margin-bottom:0">Information and
 communications technology </p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:6.7pt;text-align:right' style="margin-top:0;margin-bottom:0">2,401</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,783</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 5.75pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">618</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 5.75pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">35</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style="margin-top:0;margin-bottom:0">Inter-segment revenues</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">(4,825)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(4)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(2,586)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(2,239)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">87</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style="margin-top:0;margin-bottom:0">Total</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:6.7pt;text-align:right' style="margin-top:0;margin-bottom:0">Php121,221</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 2.25pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 border-bottom:double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php111,200</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 2.25pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 2.25pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php10,021</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 2.25pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">9</p>
 </td>
 </tr>
 <tr height=0>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 </tr>
</table></center></div>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Consolidated Operating Expenses</i></b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our consolidated operating expenses in 2004 decreased
by Php5,139 million, or 7%, to Php72,682 million from Php77,821 million in
2003.  The decrease was primarily due to lower operating expenses associated
with our wireless and fixed line businesses, partially offset by an increase in
operating expenses associated with our information and communications
technology business.  As a percentage of our consolidated operating revenues,
consolidated operating expenses decreased to 60% in 2004 from 70% in 2003. </p>

<p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
following table shows the breakdown of our consolidated operating expenses for
the years ended December 31, 2004 and 2003 by business segment:</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.14%;border-collapse:collapse;border-collapse:collapse !msorm'>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=16 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=center style=';text-align:
 center;text-indent:1.55pt' style="margin-top:0;margin-bottom:0"><b>Years Ended
 December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=7 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Increase/(Decrease) </b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   colspan=2 valign=top style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-top:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=16 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=center style=';text-align:
 center;text-indent:1.55pt' style="margin-top:0;margin-bottom:0"><b>(in millions)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.0pt' style='page-break-inside:
 avoid !msorm;height:4.0pt !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.0pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.0pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.0pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.0pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.0pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.0pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.0pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.0pt'>
 <p align=right style=';text-align:
 right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.0pt'>
 <p align=right style=';text-align:
 right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.0pt'>
 <p align=right style=';text-align:
 right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.0pt'>
 <p align=right style=';text-align:
 right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.0pt'>
 <p align=right style=';text-align:
 right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Wireless </p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php42,769</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">59</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php46,264</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">59</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-top:0in;margin-right:4.1pt;
 margin-bottom:0in;margin-left:2.9pt;margin-bottom:.0001pt;text-align:right;
 text-indent:-2.7pt' style="margin-top:0;margin-bottom:0">(Php3,495)</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.45pt' style="margin-top:0;margin-bottom:0">(8)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style="margin-top:0;margin-bottom:0">Fixed line</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">31,909</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">44</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">32,303</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">42</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-top:0in;margin-right:4.1pt;
 margin-bottom:0in;margin-left:5.75pt;margin-bottom:.0001pt;text-align:right;
 text-indent:-2.7pt' style="margin-top:0;margin-bottom:0">(394)</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.45pt' style="margin-top:0;margin-bottom:0">(1)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style="margin-top:0;margin-bottom:0">Information and
 communications technology </p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,035</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,272</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-top:
 0in;margin-right:8.6pt;margin-bottom:0in;margin-left:2.7pt;margin-bottom:
 .0001pt;text-align:right;text-indent:-2.7pt' style="margin-top:0;margin-bottom:0">763</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-top:0in;margin-right:5.75pt;
 margin-bottom:0in;margin-left:2.9pt;margin-bottom:.0001pt;text-align:right;
 text-indent:1.45pt' style="margin-top:0;margin-bottom:0">34</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style="margin-top:0;margin-bottom:0">Inter-segment expenses</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(5,031)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(7)</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(3,018)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(4)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-left:0in !msorm;margin-top:0in;
 margin-right:4.1pt;margin-bottom:0in;margin-left:2.7pt;margin-bottom:.0001pt;
 text-align:right;text-indent:-2.7pt' style="margin-top:0;margin-bottom:0">(2,013)</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.45pt' style="margin-top:0;margin-bottom:0">67</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style="margin-top:0;margin-bottom:0">Total</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php72,682</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 2.25pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 2.25pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php77,821</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 2.25pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 border-bottom:double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-top:0in;margin-right:4.1pt;
 margin-bottom:0in;margin-left:2.9pt;margin-bottom:.0001pt;text-align:right;
 text-indent:-2.7pt' style="margin-top:0;margin-bottom:0">(Php5,139)</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 border-bottom:double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.45pt' style="margin-top:0;margin-bottom:0">(7)</p>
 </td>
 </tr>
 <tr height=0>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style="margin-top:0;margin-bottom:0"><b><i>Consolidated Operating
Income</i></b></p>

<p style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
consolidated operating income in 2004 was Php48,539 million, an increase of
Php15,160 million, or 45%, compared to Php33,379 million in 2003 as a result of
an increase in our consolidated operating revenues, complemented by a decrease
in our consolidated operating expenses.  </p>

<p style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Consolidated Financing Costs</i></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Financing
costs on a consolidated basis decreased by Php7,686 million, or 31%, to
Php17,097 million primarily due to lower foreign exchange losses pertaining to
the foreign exchange revaluation of the carrying values of financial
liabilities because the level of peso depreciation was lower in 2004 as
compared to 2003 and also because of lower foreign denominated debt balances in
2004 compared to 2003 and lower interest expense and related items owing to
lower debt balances in 2004 compared with 2003.  </p>

<p style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style="margin-top:0;margin-bottom:0"><b><i>Consolidated Interest
Income</i></b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Interest
income on a consolidated basis increased by Php429 million, or 84%, to Php942
million in 2004 from Php513 million in 2003 mainly attributable to higher
average cash balances.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>Consolidated Other
Income - Net</i></b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Other income on a consolidated basis totaled Php2,530 million
in 2004, an increase of Php1,731 million, or 217%, compared to Php799 million
in 2003.  The increase was mainly due to a gain on a debt exchange
restructuring transaction conducted by Smart in 2004 pertaining to the wireless
business. There was no similar gain of the same nature in 2003.   For further details,
see &#147;Item 5.  Operating and Financial Review and Prospects &#150; Other Information
&#150; Piltel Debt Exchange Transaction&#148; and <i>Note 12 &#150;</i> <i>Interest&#150;bearing
Financial Liabilities &#150; Term Loans &#150;US$283 Million Term Loan Facility, or Debt
Exchange Facility</i> to the accompanying consolidated financial statements in
Item 18.  </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>Consolidated I</i></b><b><i>ncome Before Income Tax, Cumulative Effect of Change
in Accounting Policy and Minority Interest in Net Loss (Income) of Consolidated
Subsidiaries </i></b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Our income before income tax, cumulative
effect of change in accounting policy and minority interest in net loss
(income) of consolidated subsidiaries in 2004 was Php34,840 million, an
increase of Php25,020 million, or 255%, from Php9,820 million in 2003.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Provision for (Benefit from) Income Tax</i></b></p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Provision
for income tax amounted to Php6,826 million in 2004 compared to a benefit from
income tax of Php1,400 million in 2003 due to a tax loss position, as non-tax
deductible charges were higher in 2003.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">In 2004 and 2003, our effective corporate tax rate on a
consolidated basis was 20% and 14%, respectively.  Our effective corporate tax
rate was lower than the 32% statutory corporate tax rate due to the following:
our income was already subjected to a final tax; our income was already subjected
to a lower tax rate; and our equity in net income of our subsidiaries, which
had already been subjected to tax and was therefore no longer subject to income
tax.  Our effective tax rate increased in 2004 primarily due to the expiration
in May 2004 of the three-year income tax holiday granted to Smart.  We
currently expect that our effective corporate tax rate will be higher going
forward than in previous years due to the expiration of Smart&#146;s income tax
holiday.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Consolidated Net Income</i></b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our
consolidated net income in 2004 was Php28,101 million, an increase of Php17,056
million, or 154%, compared to Php11,045 million in 2003.  The following table
shows the breakdown of our consolidated net income (loss) for the years ended December 31, 2004 and
2003 by business segment: </p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse;border-collapse:collapse !msorm'>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=14 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=center style=';text-align:
 center;text-indent:1.55pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=4 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Change </b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-top:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=14 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=center style=';text-align:
 center;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';text-align:
 right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';text-align:
 right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';text-align:
 right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';text-align:
 right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';text-align:
 right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Wireless </p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php27,513</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">98</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:5.35pt;text-align:right' style="margin-top:0;margin-bottom:0">Php13,275</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">120</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 5.75pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">Php14,238</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 5.75pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">107</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Fixed line</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,287</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(1,902)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(17)</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 5.75pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">3,189</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 5.75pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">168</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Information and communications technology </p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#D9D9D9;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:1.45pt;text-align:right' style="margin-top:0;margin-bottom:0">(699)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#D9D9D9;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:1.45pt;text-align:right' style="margin-top:0;margin-bottom:0">(3)</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(328)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:1.45pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:1.45pt;text-align:right' style="margin-top:0;margin-bottom:0">(3)</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(371)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#D9D9D9;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 text-indent:1.45pt' style="margin-top:0;margin-bottom:0">(113)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 2.25pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php28,101</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 2.25pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:5.35pt;text-align:right' style="margin-top:0;margin-bottom:0">Php11,045</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php17,056</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 2.25pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 5.75pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">154</p>
 </td>
 </tr>
 <tr height=0>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><b>On Business Segment Basis</b></p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:13.5pt;text-indent:-13.5pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><b>Wireless</b></p>

<p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.2in;
margin-bottom:.0001pt;text-indent:0in;page-break-after:auto' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><a
name="_Toc98226560"><i>Operating Revenues </i></a></h3>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Our wireless business segment offers cellular services
as well as satellite, VSAT, and other services.</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">The following table summarizes our total
operating service and non-service revenues from our wireless business for the
years ended December 31, 2004 and 2003 by service segment:</p>

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:98.98%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:1.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=11 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Increase (Decrease)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=11 valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Wireless services:</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-right:13.2pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.25pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:11.25pt'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Service Revenues</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:11.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:11.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:11.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:11.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:11.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:11.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:11.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:11.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:11.25pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:11.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:11.25pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-left:13.5pt;text-indent:9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Cellular </p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php67,030</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">89</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php52,932</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">81</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php14,098</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">27</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-left:13.5pt;text-indent:9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Satellite, VSAT and others</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,020</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,703</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">317</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">19</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-left:4.5pt;text-indent:9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">69,050</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">92</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">54,635</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">84</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14,415</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">26</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-left:4.5pt;text-indent:9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Non-service Revenues</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-left:4.5pt;text-indent:.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Sale
 of handsets and SIM-packs</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,111</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,548</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(4,437)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(42)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-left:4.5pt' style="margin-top:0;margin-bottom:0">Total
 Wireless Operating Revenues </p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php75,161</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php65,183</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">Php9,978</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">15</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Service
Revenues</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Our wireless service revenues increased by Php14,415
million, or 26%, to Php69,050 million in 2004 compared to Php54,635 million in
2003 mainly as a result of the continued growth of Smart&#146;s and Piltel&#146;s
subscriber base.  Accordingly, as a percentage of our total wireless operating
revenues, wireless service revenues increased to 92% in 2004 from 84% in 2003. </p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Cellular Service</i></p>

<p style='text-indent:.5in;line-height:9.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Unless otherwise indicated, the financial data and
operating metrics cited in the cellular service section reflect the
consolidated results of our cellular subsidiary, Smart and its subsidiary, Piltel.</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Our cellular service revenues consist of: </p>

<p style='margin-left:.5in;line-height:7.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
revenues derived from actual usage
of the network by prepaid subscribers and any unused peso value of expired
prepaid cards or electronic air time loads, net of discounts given to dealers; </p>

<p style='margin-left:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
monthly service fees from postpaid
subscribers, including (1) charges for calls in excess of allocated free local
calls, (2) toll charges for national and international long distance calls, (3)
charges for text messages of our service customers in excess of allotted free
text messages, and (4) charges for value-added services, net of related content
provider costs;</p>

<p style='margin-left:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
revenues generated from incoming
calls and messages to our subscribers, net of interconnection expenses; fees
from reciprocal traffic from international correspondents; and revenues from
inbound international roaming calls for the service; and</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
other charges, including those for
reconnection and migration. </p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Our cellular service revenues in 2004 amounted to
Php67,030 million, an increase of Php14,098 million, or 27%, from Php52,932
million in 2003.  Cellular service revenues accounted for 89% and 81% of our
total wireless operating revenues in 2004 and 2003, respectively.  The increase
in cellular service revenues was primarily due to the continued growth of Smart&#146;s
and Piltel&#146;s subscriber base.  As at December 31, 2004,
the combined cellular subscribers of Smart and Piltel reached 19,208,232, an
increase of 6,261,035, or 48%, over their combined cellular subscriber base of
12,947,197 as at December 31, 2003.  Prepaid and postpaid net subscriber activations
totaled 6,235,518 and 25,517, respectively, in 2004, or a quarterly average
addition of 1,558,880 prepaid and 6,379 postpaid subscribers.</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The table below shows our cellular subscribers base as
at December 31, 2004 and 2003:</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:97.12%;border-collapse:collapse;border-collapse:collapse !msorm'>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:4.5pt;margin-bottom:.0001pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=7 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>As at December 31,</b></p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Increase</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>

 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Cellular subscriber base </p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">19,208,232</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,947,197</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,261,035</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">48</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:13.5pt;margin-bottom:.0001pt;text-align:justify' style="margin-top:0;margin-bottom:0">Prepaid </p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">18,933,738</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">12,698,220</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">6,235,518</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">49</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:13.5pt;margin-bottom:.0001pt;text-align:justify;text-indent:
 9.0pt' style="margin-top:0;margin-bottom:0">Smart </p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">14,321,288</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">9,831,135</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,490,153</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">46</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:13.5pt;margin-bottom:.0001pt;text-align:justify;text-indent:
 9.0pt' style="margin-top:0;margin-bottom:0">Piltel</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,612,450</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,867,085</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,745,365</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">61</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:13.5pt;margin-bottom:.0001pt;text-align:justify' style="margin-top:0;margin-bottom:0">Postpaid</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">274,494</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">248,977</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">25,517</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Of our 19,208,232 subscribers as at December 31, 2004,
prepaid subscribers accounted for approximately 99% while postpaid subscribers
accounted for the remaining 1%.  Our cellular prepaid subscriber base grew by
49% to 18,933,738 as at December 31, 2004 from 12,698,220 as at December 31,
2003, whereas our postpaid subscriber base increased by 10% to 274,494 as at
December 31, 2004 from 248,977 as at December 31, 2003.  Smart&#146;s prepaid and
postpaid net subscriber activations totaled 4,490,153 and 25,517, respectively,
in 2004, or a quarterly average addition of 1,122,538 prepaid and 6,379
postpaid subscribers.  On the other hand, Piltel&#146;s prepaid subscribers
increased by 61% to 4,612,450 as at December 31, 2004 from 2,867,085 as at
December 31, 2003, or a quarterly average addition of 436,341 subscribers.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our quarterly net subscriber activations (reductions)
over the last eight quarters are as follows:</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0  style='width:418.5pt;margin-left:5.4pt;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Prepaid</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Postpaid</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Total</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Smart</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Piltel</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Smart</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">First Quarter</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,162,301</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">218,038</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16,866</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,397,205</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Second Quarter</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,207,542</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">468,772</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,691</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,684,005</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Third Quarter</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">797,686</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">635,978</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,445</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,444,109</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Fourth Quarter</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,322,624</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">422,577</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:12.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(9,485)</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:12.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,735,716</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">First Quarter</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">527,158</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">205,086</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">36,963</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">769,207</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Second Quarter</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">744,251</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">241,630</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9,331</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">995,212</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Third Quarter</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">858,723</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">319,528</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,816</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,187,067</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Fourth Quarter</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,051,965</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">327,221</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">17,219</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,396,405</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:auto' style="margin-top:0;margin-bottom:0">Satellite, VSAT and Other Services</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Our revenues from satellite, VSAT and other services
consist mainly of rentals received for the lease of Mabuhay Satellite's
transponders and Telesat's VSAT facilities to other companies and charges for
ACeS Philippines&#146; satellite phone service.  Gross service revenues from these
services for 2004 amounted to Php2,020 million, an increase of Php317 million,
or 19%, from Php1,703 million in 2003.</p>

<p style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style="margin-top:0;margin-bottom:0"><i>Non-service Revenues</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
wireless non-service revenues consist of:</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Proceeds from sale of cellular
handsets; and</p>

<p style='line-height:9.0pt;punctuation-wrap:hanging;
text-autospace:ideograph-numeric ideograph-other;border:none' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Proceeds from sale of cellular
SIM-packs.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our wireless non-service revenues decreased by Php4,437
million, or 42%, to Php6,111 million in 2004 as compared to Php10,548
million in 2003 mainly attributable to lower handset sales due to the fact that
activations in 2004 were primarily driven by more SIM-pack sales and SIM-swap
activities.  </p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style=';margin-bottom:0in;margin-bottom:
..0001pt;text-align:left;text-indent:.3in;page-break-after:auto;punctuation-wrap:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><i>Operating Expenses</i></h6>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Operating expenses associated with our wireless
business in 2004 amounted to Php42,769 million, a decrease of Php3,495 million,
or 8%, from Php46,264 million in 2003.  A significant portion of this decrease
was mainly attributable to decreases in costs of cellular handsets and
SIM-packs sold and depreciation and amortization, partially offset by higher
rent and selling and promotion expenses.  As a percentage of our total wireless
operating revenues, operating expenses associated with our wireless business
decreased to 57% in 2004 from 71% in 2003.   </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Cellular business expenses accounted for 93% while
satellite, VSAT and other business expenses accounted for 7% of our wireless
business expenses in 2004, compared to 94% and 6%, respectively, in 2003.</p>

<p style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">The following table summarizes our wireless-related
expenses for the years ended December 31,
 2004 and 2003 and the percentage of each
expense item to the total:</p>

<p style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:95.2%;border-collapse:collapse;border-collapse:collapse !msorm'>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=11 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Increase (Decrease)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=11 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(in millions)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Wireless services</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Costs of cellular handsets and SIM-packs sold</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php10,599</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">25</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php15,790</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">34</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php5,191)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(33)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Depreciation and amortization</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,085</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">24</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,183</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">26</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2,098)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(17)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Selling and promotions</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,320</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,310</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,010</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">31</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Rent</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,160</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,235</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,925</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">86</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Compensation and benefits(1)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,205</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,801</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(596)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(16)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.65pt' style='page-break-inside:
 avoid !msorm;height:7.65pt !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:7.65pt'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Maintenance</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:7.65pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,616</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:7.65pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:7.65pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:7.65pt'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:7.65pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,051</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:7.65pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:7.65pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:7.65pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:7.65pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">565</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:7.65pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:7.65pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">28</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cost of satellite air time</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,299</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,919</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(620)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(32)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Taxes and licenses</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,222</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,174</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">48</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Professional and other service fees</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,012</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">624</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">388</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">62</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Insurance and securities</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">937</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">756</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">181</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">24</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Asset impairment </p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">430</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">288</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">142</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">49</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Provision for inventory obsolescence</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">213</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">87</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">126</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">145</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Provision for doubtful accounts</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">204</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">72</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">132</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">183</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Amortization of intangible assets</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">93</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">766</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(673)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(88)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Other operating expenses</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,374</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,208</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,166</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">97</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.5pt' style='page-break-inside:
 avoid !msorm;height:3.5pt !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total </p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php42,769</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php46,264</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 padding:0in 0in 0in 0in !msorm;height:3.5pt'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php3,495)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 padding:0in 0in 0in 0in !msorm;height:3.5pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(8)</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">__________</p>

<p style='margin-left:.25in;text-indent:-.25in;line-height:
3.0pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(1)   Includes salaries and benefits, incentive plan,
pension and manpower rightsizing program, or MRP, costs.</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Costs
of cellular handsets and SIM-packs sold decreased by Php5,191 million, or 33%,
to Php10,599 million as activations in 2004 were primarily driven more by
SIM-pack sales and SIM-swap activities compared to handset sales in 2003.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Depreciation and amortization charges decreased by Php2,098
million, or 17%, to Php10,085 million substantially due to a decrease in the
depreciable asset base as certain of our wireless assets were fully depreciated
by the end of 2004.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Selling
and promotion expenses increased by Php1,010 million, or 31%, to Php4,320
million due to advertising and promotions costs incurred to attract new
subscriptions, as well as to retain our existing subscriber base.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Rent
expenses increased by Php1,925 million, or 86%, to Php4,160 million on account
of an increase in the number of transmission links and higher cell site and
office space rentals for the increased number of cell sites, wireless centers
and space requirements for increased personnel, primarily related to the
increase in the number of our subscribers.  As at December 31, 2004, we had 3,957
cell sites and 5,303 base stations, compared with 2,920 cell sites and 3,904
base stations as at December 31, 2003.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Compensation and benefits decreased by Php596 million,
or 16%, to Php3,205 million primarily due to a higher accrual in 2003 of a long-term incentive benefits of
managers and executives of Smart covering the period 2000 to 2004, partially
offset by an increase in headcount and
increased salaries, benefits and performance bonuses of Smart&#146;s employees.  Smart's
employee headcount increased by 8% to 5,239 as at December 31, 2004 from 4,870 as
at December 31, 2003.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Maintenance
expenses increased by Php565 million, or 28%, to Php2,616 million mainly on
account of higher repairs and maintenance costs, and higher site utility
expenses due to, and in line with, the continued growth in the number of cell
sites and other network facilities.  </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Cost
of satellite air time decreased by Php620 million, or 32%, to Php1,299 million
due to the change in the basis of recognizing air time cost.  In 2003,
satellite air time cost was accrued at a fixed amount per month based on the
payment schedule in a standstill agreement in consideration for unlimited air
time access.  In 2004, upon the termination of the standstill agreement, air
time cost was reverted to the original charging rate on a per minute basis.
This was agreed to be the basis of air time cost until a new agreement is
finalized.  Please see <i>Note 18 &#150;</i> <i>Operating</i> <i>Revenues and Expe</i>nses
to the accompanying consolidated financial statements in Item 18 for further discussion.
</p>

<p style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Taxes
and licenses increased by Php48 million, or 4%, to Php1,222 million mainly due
to an increase in Smart&#146;s business-related permits and licenses.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Professional
and other service fees increased by Php388 million, or 62%, to Php1,012 million
mainly as a result of increased legal and consultancy fees primarily incurred
in connection with transactions conducted by  Smart in 2004 and increased bill
collection service fees in line with the growth of our subscriber base.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Insurance
and securities increased by Php181 million, or 24%, to Php937 million mainly due to the increase in our number of cell sites
and in the amount of network equipment insured as a result of the continued
growth and expansion of our network.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Asset
impairment charges increased by Php142 million, or 49%, to Php430 million due
to impairment losses recognized in respect of Mabuhay Satellite&#146;s investment in
an investee company amounting to Php430 million as compared to Piltel&#146;s
recognition of asset impairment amounting to Php288 million in 2003.</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Provision for inventory obsolescence increased by
Php126 million, or 145%, to Php213 million, primarily due to slow moving
handsets relating to ACeS Philippines in 2004.</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Provision for doubtful accounts increased by Php132
million, or 183%, to Php204 million in 2004 mainly due to an increase of
specifically identified uncollectible subscriber accounts of Smart.</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Amortization of intangible assets decreased by Php673 million, or 88%,
to Php93 million in 2004 mainly due to the amortization of a customer list of
Php766 million in 2003.  The amortization expense of Php93 million in 2004
represents amortization of intangibles incurred in acquiring equity interests
in Meridian and Wolfpac by Smart; no similar charges were incurred in 2003. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Other operating expenses increased by Php1,166 million, or 97%, to Php2,374 million
due to various business and operational-related expenses such as facility usage
fees, travel, supplies, communication and delivery expenses.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0"><b><i>Operating Income</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Operating income from our wireless business amounted to Php32,392
million in 2004, an increase of Php13,473 million, or 71%, from Php18,919
million in 2003, primarily due to increased revenues, mainly from our cellular
services, complemented by lower operating expenses.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Financing Costs</i></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">Financing costs associated with our
wireless business decreased by Php1,848 million, or 45%, to Php2,285 million in
2004, primarily due to lower foreign exchange losses, because the level of
depreciation of the peso was higher in 2003 compared to 2004, and lower
interest expense on loans resulting from lower debt balances in 2004 as
compared to 2003.  The breakdown of our financing costs for our wireless
business for the years ended December 31,
 2004 and 2003 is as follows:</p>

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0  style='width:6.25in;margin-left:5.4pt;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  colspan=7 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  colspan=3 valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Increase (Decrease)</b></p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=7 valign=top style=' border:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Interest on loans and related items</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php984</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php1,348</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php364)</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(27)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Accretion on financial liabilities</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">884</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">449</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">435</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">97</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Foreign exchange losses</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">423</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,139</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,716)</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(80)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Gain) loss on derivative transactions &#150; net</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(7)</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">165</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(172)</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(104)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Financing charges</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">32</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(31)</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(97)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php2,285</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php4,133</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php1,848)</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(45)</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:0in;text-indent:0in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><b><i>Interest Income</i></b></p>

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">Interest income generated by our wireless
business amounted to Php724 million in 2004, an increase of Php356 million, or
97%, compared to Php368 million in 2003 mainly attributable to Smart&#146;s higher
average cash balances.</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-bottom:0in;margin-bottom:.0001pt;text-align:left;
punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><i>Other Income - net</i></h6>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our wireless business segment generated other income -
net of Php2,648 million in 2004, an increase of Php2,561 million, from Php87
million in 2003.  This increase was primarily a result of a Php2,620 million
gain on a debt restructuring transaction conducted by Smart in 2004 pertaining
to our wireless business.  See &#147;Item 5. Operating and Financial Review and
Prospects &#150; Other information &#150; Piltel Debt Exchange Transaction&#148; and <i>Note
12 &#150; Interest-bearing Financial Liabilities &#150; Term Loans &#150; US$283 Million Term
Loan Facility, or Debt Exchange Facility </i>to the accompanying consolidated
financial statement in Item 18.</p>

<p style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style="margin-top:0;margin-bottom:0"><b><i>Income Before Income
Tax, Cumulative Effect of Change in Accounting Policy and Minority Interest in
Net Income (Loss) of Consolidated Subsidiaries</i></b></p>

<p style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Income
before income tax, cumulative effect of change in accounting policy and
minority interest in Net income (loss) of consolidated subsidiaries increased
by Php18,244 million, or 120%, to Php33,407 million in 2004 compared to
Php15,163 million in 2003, mainly due to a 15% increase in wireless operating
revenues, principally from our cellular business, resulting from the continued
cellular subscriber growth, as well as a decrease in our wireless business
expenses of 8% in 2004.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc98226561"><b><i>Provision for Income Tax</i></b></a></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">Provision for income tax increased by
Php4,295 million, or 257%, to Php5,967 million in 2004 from Php1,672 million in
2003 as Smart&#146;s income tax holiday expired in 2004.  </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Smart's three-year income tax holiday, which expired
in May 2004, applied to the incremental income generated from its GSM network
expansion.  The income tax holiday was computed by applying the exemption rate
against the income tax derived from GSM operations.  The exemption rate was
computed by dividing the incremental GSM revenues by eligible GSM revenues
(both gross of interconnection revenues) where the incremental GSM revenues were
derived by deducting the base figure prescribed by the BOI (Smart&#146;s gross
revenue in 2000) from the total GSM revenues.  After adjusting for
non-deductible items and unrealized and realized foreign exchange losses,
Smart&#146;s net taxable income was multiplied by the statutory corporate income tax
rate of 32% and the exemption rate.  The resulting figure was the income tax
that was deducted from the income tax due on GSM revenues with the difference
being the income tax due for the period.  We
currently expect that our effective corporate tax rate will be higher going
forward than in previous years due to the expiration of Smart&#146;s income tax
holiday.</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc98226562"><b><i>Net Income</i></b></a></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Our wireless business segment recorded a net income of
Php27,513 million in 2004, an increase of Php14,238 million, or 107%, over
Php13,275 million registered in 2003 due primarily to the 48% growth in our
cellular subscriber base, complemented by an 8% decrease in wireless expenses.</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style=';margin-bottom:0in;margin-bottom:
..0001pt;text-align:left;text-indent:.3in;page-break-after:auto;punctuation-wrap:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">Fixed Line</h6>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>Operating Revenues </i></b></p>

<p style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Our fixed line business provides local exchange
service, international and national long distance services, data and other
network services, and miscellaneous services.  Operating revenues generated
from our fixed line business for 2004 totaled Php48,484 million, an increase of
Php1,664 million, or 4%, from Php46,820 million in 2003.  This increase was primarily due to higher revenues
generated from data and other network services, national long distance
services, international long distance services and miscellaneous revenues,
partially offset by decreased revenues from local exchange service.  As a
percentage of our total operating revenues, fixed line revenues decreased to
38% in 2004 from 41% in 2003, principally due to the continued growth of our
wireless business.  </p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.75in' style="margin-top:0;margin-bottom:0">The following table summarizes total operating
revenues from our fixed line business for the years ended December 31, 2004 and
2003 by service segment:</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:95.2%;border-collapse:collapse;border-collapse:collapse !msorm'>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=11 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-top:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Increase (Decrease)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=9 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Fixed line services:</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Service Revenues</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Local exchange</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php20,606</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">42</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php20,728</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">44</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php122)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">International long distance</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,804</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">26</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,767</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">27</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">37</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">National long distance</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,736</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,561</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">175</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Data and other network</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,052</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">15</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,978</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,074</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">18</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Miscellaneous</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,286</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:5.75pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">786</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">500</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">64</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:4.5pt' style="margin-top:0;margin-bottom:0">Total
 Fixed Line Operating Revenues </p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:double windowtext 2.25pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php48,484</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:double windowtext 2.25pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:double windowtext 2.25pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php46,820</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:double windowtext 2.25pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:double windowtext 2.25pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php1,664</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:double windowtext 2.25pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 </tr>
</table></center></div>

<p style='line-height:1.0pt;punctuation-wrap:hanging;
text-autospace:ideograph-numeric ideograph-other;border:none' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.2in;
margin-bottom:.0001pt;text-indent:-.2in' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><a name="_Toc98226563"><i>Service Revenues</i></a></h3>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Local Exchange Service</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our local exchange service revenues consist of: </p>

<p style='line-height:10.0pt;page-break-after:avoid;
punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other;
border:none' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
flat monthly fees for our postpaid
service; </p>

<p style='line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
installation charges and other
one-time fees associated with the establishment of customer service;</p>

<p style='line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
fixed charges paid by other
telephone companies, charges retained by PLDT for calls terminating to cellular
subscribers within the local area, and local access charges paid by cellular
operators for calls by cellular subscribers that terminate to our local
exchange network;</p>

<p style='line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
revenues from usage of prepaid
cards for calls within the local area and any unused peso value of expired
prepaid cards; and</p>

<p style='line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
charges for special features,
including bundled value-added services such as call waiting, call forwarding,
multi-party conference calling, speed calling and caller ID. </p>

<p style='line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table summarizes key measures of our
local exchange service business segment as at and for the years ended December 31, 2004 and
2003:</p>

<p style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:91.34%;border-collapse:collapse;border-collapse:collapse !msorm'>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=7 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December
 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Increase (Decrease)</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:4.5pt;margin-bottom:.0001pt;line-height:normal;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Consolidated local exchange service revenues (in
 millions)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php20,606</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php20,728</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php122)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Number of fixed lines in service</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,152,027</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,185,951</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(33,924)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Number of fixed line employees</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9,692</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,518</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(826)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(8)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Number of fixed lines in service per employee</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">222</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">208</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Revenues from our local exchange service in 2004
decreased by Php122 million, or 1%, to Php20,606 million from Php20,728 million
in 2003.  The decrease was primarily due to the (1) shift in subscriber
preference from postpaid to prepaid services, which generate lower average
revenue per subscriber, and (2) decline in installation revenues due to a
promotion which waived installation cost of subscribers in an effort to
stimulate subscriber growth, partially offset by adjustments in our monthly
local service rates.  The percentage contribution of local exchange revenues to
our total fixed line service revenues decreased to 42% in 2004 from 44% in
2003.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Fixed line net
reductions in 2004 were 33,924 as compared to 2,661 in 2003.  While fixed line
additions totaled 11,532 for prepaid fixed line services, postpaid fixed lines
in service declined by 45,456 in 2004.  As at December 31, 2004, postpaid and
prepaid fixed line subscribers totaled 1,783,191 and 368,836, respectively,
which accounted for approximately 83% and 17%, respectively, of total fixed
lines in service.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Pursuant to a currency exchange rate adjustment
mechanism authorized by the Philippine National Telecommunications Commission,
or the NTC, we adjust our monthly local service rates upward or downward by 1%
for every Php0.10 change in the peso-to-dollar exchange rate relative to a base
rate of Php11.00 to US$1.00.  During 2004, we implemented six upward and one
downward adjustments in our monthly local service rates compared to 11 upward
and three downward adjustments in 2003.  The average peso-to-dollar rate in
2004 was Php56.044 to US$1.00, compared to the average of Php54.215 to US$1.00
in 2003.  This change in the average peso-to-dollar rate translated to a peso
depreciation of 3%, which resulted in an average net increase of 1.5% in our
monthly local service rates in 2004. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>International Long Distance Service</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our international long distance service revenues,
which we generate through our international gateway facilities, consist of:</p>

<p style='text-indent:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
inbound call revenues representing
settlements from foreign telecommunications carriers for inbound international
calls, virtual transit and hubbing service and reverse charged calls such as
received collect and home country direct service;</p>

<p style='text-indent:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
access charges paid to us by other
Philippine telecommunications carriers for terminating inbound international
calls to our local exchange network; and</p>

<p style='text-indent:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
outbound call revenues
representing amounts billed to our customers (other than our cellular
customers) for outbound international calls, net of amounts payable to foreign
telecommunications carriers for terminating calls in their territories.</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in;line-height:
94%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The
following table shows information about our international fixed line long
distance business for the years ended December 31, 2004 and 2003:</p>

<p style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:94.24%;border-collapse:collapse;border-collapse:collapse !msorm'>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=7 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Increase (Decrease)</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:4.5pt;margin-bottom:.0001pt;line-height:normal;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total international
 long distance service revenues (in millions)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php12,804</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php12,767</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php37</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.5pt;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='height:.1in' style='height:.1in !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:.1in'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:13.5pt;margin-bottom:.0001pt;line-height:normal;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Inbound</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:.1in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,452</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:.1in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:.1in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,614</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:.1in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:.1in'>
 <p align=right style='margin-right:1.45pt;text-align:right' style="margin-top:0;margin-bottom:0">(162)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:.1in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:.1in'>
 <p align=right style='margin-right:.05in;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:13.5pt;margin-bottom:.0001pt;line-height:normal;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Outbound</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,352</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,153</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">199</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.5pt;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">9</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:4.5pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">International call volumes (in million
 minutes, except call ratio)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,348</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,286</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">62</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.5pt;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:27.0pt;margin-bottom:.0001pt;text-indent:-13.5pt;line-height:
 normal;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Inbound</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,192</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,128</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">64</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.5pt;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:27.0pt;margin-bottom:.0001pt;text-indent:-13.5pt;line-height:
 normal;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Outbound</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">156</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">158</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.7pt;text-align:right' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:27.0pt;margin-bottom:.0001pt;text-indent:-13.5pt;line-height:
 normal;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Inbound-outbound
 call ratio</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">14.1:1</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">13.5:1</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:.05in;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.5pt;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our total international long distance service revenues increased
by Php37
million, to Php12,804 million in 2004 from Php12,767 million in 2003 primarily due to an increase in
outbound international long distance revenues.  The percentage contribution of
international long distance service revenues to our total fixed line operating
revenues decreased to 26% in 2004 from 27% in 2003.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our revenues from inbound international long distance calls in
2004 decreased by Php162 million to Php10,452
million from Php10,614 million in 2003
primarily due to the change in call mix in favor of transit calls with lower
hubbing rates.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our inbound international long distance call volumes in 2004
increased by 3% to 2,192 million minutes from 2,128 million minutes in 2003,
largely due to an increase in transit calls.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our revenues from outbound international
long distance calls in 2004 increased by Php199 million, or 9%, to Php2,352
million from Php2,153 million in 2003.  The
increase resulted from higher conversion rates used as average billing rates
were Php55.98 and Php54.04 in 2004 and 2003, respectively, and a change in call
mix in favor of traffic utilizing least cost routes.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our outbound international long distance call volumes declined by
1% to 156 million minutes in 2004 from 158 million minutes in 2003, primarily
due to cellular substitution (subscribers opting to use cellular for
international outbound calls) and the popularity of alternative means of
communications such as e-mailing, international text messaging and internet
telephony.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>National Long Distance Service</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our national long distance service
revenues consist of:</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
per minute charges for calls made
by our fixed line customers outside of the local service areas but within the
Philippines, net of interconnection charges payable for calls carried through
the backbone network of, and/or terminating to the customer of, another
telecommunications carrier; and</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
access charges received from other
telecommunications carriers for calls carried through our backbone network
and/or terminating to our customers.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table shows our national
long distance service revenues and call volumes for the years ended December
31, 2004 and 2003:</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:98.08%;border-collapse:collapse;border-collapse:collapse !msorm'>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=7 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Increase (Decrease)</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:4.5pt;margin-bottom:.0001pt;line-height:normal;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:4.5pt;margin-bottom:.0001pt;line-height:normal;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Total national long distance service
 revenues (in millions)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php6,736</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">Php6,561</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">Php175</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.05pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">National long distance call volumes (in million
 minutes)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,853</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">2,016</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">(163)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">(8)</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Our national long
distance service revenues increased by Php175 million, or 3%, to Php6,736 million in 2004 from Php6,561 million
in 2003 as a result of increased national direct dial, or NDD, rates and more
beneficial interconnection agreements with cellular operators.  The percentage
contribution of national long distance revenues to our total fixed line service
revenues was 14% for 2004 and 2003.</p>

<p style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style="margin-top:0;margin-bottom:0">Effective March 1, 2003, the
rate for NDD calls originating from PLDT subscribers and terminating to other
local exchange carriers increased to Php5.00 per minute from a flat rate of Php4.50 per
minute.  In addition, NDD calls originating from and terminating to PLDT was
also adjusted to Php5.00 per minute from a flat rate of Php4.50 per
minute effective June 8, 2003.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Further, we have
entered into more beneficial interconnection agreements with cellular
operators.  Beginning January 2004, our settlement rate to cellular operators
of Php4.50
per minute was reduced to Php4.00 per minute for calls terminating to cellular
subscribers.  At the same time, the cellular operators&#146; settlement rate for
calls terminating to PLDT subscribers increased from Php2.50 per
minute to Php3.00 per minute.  In 2003, certain local exchange
carriers, previously under revenue sharing arrangements, entered into access
charging agreements with PLDT.  Under the revenue sharing agreements, charges
are generally apportioned 30% for the originating entity, 40% for the backbone
owner and another 30% for the terminating entity.  Under these access charging
agreements, the originating carrier generally pays access charges of (1) Php0.50 per
minute for short haul traffic and Php1.25 per minute for long haul traffic to the carrier
owning the backbone network; and (2) Php1.00 per minute to the terminating carrier.  This
change in interconnection charges resulted in a 7% decrease in average revenue
per minute for calls originating from and terminating to other local exchange
carriers.  </p>

<p style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style="margin-top:0;margin-bottom:0">Our national long
distance call volumes, however, decreased by approximately 8% to 1,853 million
minutes in 2004 from 2,016 million minutes in 2003.  Cellular substitution and
the widespread availability and growing popularity of alternative non-voice
means of communications, particularly cellular text messaging and e-mailing,
have negatively affected call volumes.</p>

<p style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='text-indent:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Data and Other Network Services</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">In 2004, our data and other network services posted
revenues of Php7,052 million, an increase of Php1,074 million, or 18%, from
Php5,978 million in 2003.  The revenue contribution of this service segment to
our total fixed line service revenues increased to 15% in 2004 from 13% in
2003.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Data
and other network services we currently provide include traditional bandwidth
services, broadband/packet-based/internet-based services and other packet-based
switching services.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
foregoing services are used for domestic and international communications,
broadband data transmission services, internet exchange services, private
networking services, switch-based services and international packet-based
services.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Broadband/IP-based services accounted for 51%,
traditional bandwidth services accounted for 44% and other services accounted
for the remaining 5% of the total revenues from PLDT&#146;s data and other network
services in 2004, compared to 44%, 50% and 6%, respectively, in 2003.  These
percentage changes indicate a continuing shift in data and other network
revenues from traditional bandwidth services to broadband/IP-based services.
We expect this trend to continue given the growing demand for broadband
transmission of voice, data and video due to the continued growth of the
internet, e-commerce and other online services.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.25in' style="margin-top:0;margin-bottom:0"><i>Miscellaneous</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Miscellaneous service revenues are derived mostly from directory
advertising and facilities rental.  In 2004, these revenues increased by Php500 million,
or 64%, to Php1,286 million from Php786 million in 2003.  The improvement was mainly due to
an increase in co-location charges from more co-location sites coupled with an
increase in rent income on duct utilization and cable restoration.
Miscellaneous service revenues accounted for approximately 3% of our total
fixed line service revenues in 2004 and 2% in 2003.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-indent:0in' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><a
name="_Toc98226564"><i>Operating Expenses</i></a></h3>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Operating expenses related to our fixed line business
in 2004 totaled Php31,909 million, a decrease of Php394 million, or 1%,
compared to Php32,303 million in 2003.  The decrease was primarily due to
compensation and benefits as a result of PLDT&#146;s MRP and lower rent expense.  As
a percentage of our total fixed line operating revenues, fixed line-related
expenses decreased to 66% in 2004, compared to 69% in 2003.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The following table shows the
breakdown of our total fixed line-related expenses for the years ended December 31, 2004 and
2003 and the percentage of each expense item to the total:</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:93.26%;border-collapse:collapse;border-collapse:collapse !msorm'>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=11 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Increase (Decrease)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=9 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.7pt' style='page-break-inside:
 avoid !msorm;height:11.7pt !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:11.7pt'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Fixed line services:</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:11.7pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Depreciation and amortization</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php9,674</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">30</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">Php9,315</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">29</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php359</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Compensation and benefits(1)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">7,921</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">25</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">8,971</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">28</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(1,050)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(12)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Provision for doubtful accounts</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,744</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">12</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">3,950</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">12</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(206)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">(5)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Maintenance</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,192</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">3,081</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">111</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Rent</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,742</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">1,909</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(167)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(9)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Professional and other service fees</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,177</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">1,129</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">48</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Selling and promotions</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,100</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">1,055</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">45</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Taxes and licenses</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">812</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">959</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(147)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(15)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Insurance and securities</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">700</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">762</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(62)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(8)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Asset impairment </p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">365</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">365</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Provision for inventory obsolescence</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">361</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">152</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">209</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">138</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Other operating expenses</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,121</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">1,020</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">101</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.5pt' style='page-break-inside:
 avoid !msorm;height:3.5pt !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total </p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php31,909</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">Php32,303</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(Php394)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(1)</p>
 </td>
 </tr>
</table></center></div>

<p style='line-height:150%;punctuation-wrap:hanging;
text-autospace:ideograph-numeric ideograph-other;border:none' style="margin-top:0;margin-bottom:0">____________</p>

<p style='margin-left:.25in;text-indent:-.25in;line-height:
3.0pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:135.0pt;text-indent:-130.5pt' style="margin-top:0;margin-bottom:0"><i>(1)&nbsp; </i><i>Includes salaries and benefits, incentive plan, pension
and MRP costs.</i></p>

<p style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Depreciation and amortization charges increased by Php359 million,
or 4%, to Php9,674 million mainly due to higher depreciation of our
regular asset base primarily resulting from additional completed projects.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Compensation
and benefits decreased by Php1,050 million, or 12%, to Php7,921 million mainly
due to a 7% reduction in headcount due to PLDT&#146;s MRP in 2003, when MRP cost of
Php1,560 million was recognized consequently; in 2004, MRP cost amounted to
Php553 million.  This decreasing effect was partially offset by collective
bargaining agreement-related increases in salaries and benefits of PLDT
employees.  See <i>Note 18 &#150; Operating Revenues and Expenses </i>to the
accompanying consolidated financial statements in Item 18 for further
discussion on PLDT&#146;s MRP.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Provision
for doubtful accounts decreased by Php206 million, or 5%, to Php3,744 million
primarily on account of lower provisions by PLDT for anticipated uncollectible
accounts from various specifically identified domestic telecommunications
carriers.  PLDT makes provisions for anticipated uncollectible accounts based
on the aging profile of its accounts receivables.  PLDT&#146;s provision for
doubtful accounts in 2004 and 2003 was equivalent to 8% of its service
revenues.  </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Maintenance expenses increased by Php111 million, or
4%, to Php3,192 million primarily owing to the expiration of warranties for
certain plant facilities and higher maintenance costs of computer and
peripherals in relation to charges for software support agreements for certain
systems in 2004 as compared in 2003, partially offset by lower maintenance
costs of the domestic fiber optic network due to more remedial works done in
2003 than in 2004.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Rent expenses decreased by Php167 million, or 9%, to
Php1,742 million due to a decrease in international leased circuits and rental
for bundled sales/value added service units expense.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Professional and other service fees increased by Php48
million, or 4%, to Php1,177 million as a result of higher legal fees in 2004
for various services, partially offset by a decrease in number of consultants
in line with PLDT&#146;s cost management efforts, coupled with a decrease in
collection agency fees on account of lower final accounts subject for
collection.</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Selling and promotion expenses increased by Php45
million, or 4%, to Php1,100 million mainly as a result of an increase in PLDT&#146;s
promotional activities in relation to various products and services, partially
offset by reduced corporate public relations expenses.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Taxes
and licenses decreased by Php147 million, or 15%, to Php812 million mainly on
account of lower business-related taxes paid in 2004 as compared to 2003.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Insurance
and securities decreased by Php62 million, or 8%, to Php700 million primarily
due to lower premiums on property all-risk, industrial all-risk and industrial
fire insurance and lower number of contracted security guards.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Asset
impairment amounted to Php365 million in 2004, which was primarily related to
certain international assets of PLDT&#146;s subsidiaries. </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Provision for inventory
obsolescence increased by Php209 million, or 138%, to Php361 primarily on
account of higher inventory obsolescence owing to slow-moving items determined
in 2004 as compared to 2003.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Other
operating expenses increased by Php101 million, or 10%, to Php1,121 million due
to higher contracted costs for technical and helpdesk resources and related
computer and maintenance and in-house systems development, partially offset by
lower office supplies consumption and printing costs resulting from PLDT&#146;s
continuing cost-containing activities.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>Operating Income</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Operating income from our fixed
line service amounted to Php16,575 million in 2004, an increase of Php2,058
million, or 14%, from Php14,517 million in 2003 due to increased revenues
primarily relating to our data and other network services as well as lower
operating expenses.  </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0"><b><i>Financing
Costs</i></b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Financing costs associated with
our fixed line business decreased by Php5,769 million, or 28%, to Php14,821
million primarily due to lower interest expense and related items owing to lower
debt balances in 2004 compared with 2003 and lower foreign exchange losses
pertaining to: (1) the foreign exchange revaluation of the carrying values of
financial liabilities because the level of peso depreciation was higher in 2003
as compared to 2004 and (2) designation and documentation of certain hedged
items as hedged instruments to qualify for hedge accounting from July 2004
onwards.  The breakdown of our financing costs for our fixed line business for
the years ended December 31, 2004 and 2003 is as follows:</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0  style='width:6.25in;margin-left:5.4pt;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  colspan=7 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  colspan=3 valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Increase (Decrease)</b></p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=7 valign=top style=' border:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Interest on loans and related items</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php10,137</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php10,034</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php103</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Foreign exchange losses</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,392</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,525</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(5,133)</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(68)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:12.6pt;text-indent:-12.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Hedge costs</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,011</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,054</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(43)</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(4)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Loss on derivative transactions &#150; net</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">835</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,466</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(631)</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(43)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Accretion on financial liabilities</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">301</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">280</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';margin-right:
 .05in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">21</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Financing charges</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">145</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">231</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(86)</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(37)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:1.45pt;text-align:right' style="margin-top:0;margin-bottom:0">Php14,821</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php20,590</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php5,769)</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(28)</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style="margin-top:0;margin-bottom:0"><b><i>Interest Income</i></b></p>

<p style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Interest
income generated by our fixed line business amounted to Php248 million in 2004,
an increase of Php110 million, or 80%, compared to Php138 million in 2003
mainly attributable to PLDT&#146;s higher average cash balances.</p>

<p style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Other Income - net</i></b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">All
other income/gains such as rental income, gain on disposal of property, which
do not fall under service revenues are included under this classification.  In
2004, our fixed line business segment registered a decrease in other income of
Php950 million, or 93%, to Php74 million in 2004 from Php1,024 million in 2003.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Income (Loss) Before Income Tax, Cumulative Effect of Change in
Accounting Policy and Minority Interest in Net Income of Consolidated
Subsidiaries</i></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our fixed line business segment registered an income
before income tax, cumulative effect of change in accounting policy and
minority interest in net income of consolidated subsidiaries of Php2,076
million in 2004 compared to a loss of Php4,911 million in 2003, primarily
resulting from a substantial decrease in fixed line business-related expenses,
particularly financing costs and compensation and benefits.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-indent:0in' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><a
name="_Toc98226565"><i>Provision for (Benefit
from) Income Tax</i></a></h3>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Provision
for income tax amounted to Php800 million in 2004 as compared to benefit from
income tax of Php3,008 million in 2003 due to a tax loss position in 2003 as
non-tax deductible charges were higher in 2003.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-indent:0in' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><i>Net Income (Loss) </i></h3>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">In 2004, our fixed line business
segment registered a net income of Php1,287 million, compared to a net loss of
Php1,902 million in 2003.  The change was primarily due to an increase in fixed
line operating revenues as well as a decrease in fixed line-related expenses,
particularly compensation and benefits and lower financing costs.  </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-indent:0in' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><a
name="_Toc98226567">Information and
Communications Technology</a></h3>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><b>Operating Revenues </b></h5>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Our information and communications technology business
is conducted by ePLDT, a wholly-owned subsidiary of PLDT.  </p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
2004, our information and communications technology business generated
operating revenues of Php2,401 million, an increase of Php618 million, or 35%,
from Php1,783 million in 2003.  These revenues accounted for 2% of our total
operating revenues in 2004 and 2003.  ePLDT&#146;s call center business contributed
revenues of Php1,213 million, Internet and gaming contributed revenues of
Php569 million and <i>Vitro&#153;</i> contributed revenues of Php243 million
representing 58%, 27% and 12%, respectively, of the total service revenues from
our information and communications technology business in 2004, compared to
63%, 26% and 8%, in 2003.  Going forward, we expect revenues from our call
center and Internet and gaming businesses to continue to contribute
significantly to our information and communications technology revenues with
the growing demand for call center services.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The following table summarizes
our total operating revenues from our information and communications technology
business for the years ended December 31,
 2004 and 2003 by service segment:</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='margin-left:5.4pt;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  colspan=11 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  colspan=3 valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Increase</b></p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=11 valign=top style=' border:none;
 border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Service Revenues</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Call center</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php1,213</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">51</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php927</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">52</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php286</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">31</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Internet and gaming business</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">569</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">24</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">380</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">21</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">189</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">50</p>
 </td>
 </tr>
 <tr style='height:.15in'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p style='text-indent:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Vitro&#153;</i> data center</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">243</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">120</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">123</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">103</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">55</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">40</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">15</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">38</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,080</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">87</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,467</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">82</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">613</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">42</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Non-service Revenues</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Point of Product Sales</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">321</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">316</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">18</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total ICT Operating Revenues</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php2,401</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php1,783</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php618</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">35</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Service Revenues</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Service revenues generated by our information and
communications technology business amounted to Php2,080 million in 2004, an
increase of Php613 million, or 42%, from Php1,467 million in 2003.  This was
primarily a result of the continued growth of our call center and Internet and
gaming businesses.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Call</i><i> </i><i>Center</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Call center revenues consist of:</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
inbound calls for customer care,
product inquiries, sales and technical support based on active minutes;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
outbound calls for sales and
collections based on active minutes; and </p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
service income for e-mail
handling, web chat, web co-browsing, data entry and business process outsourcing
based on transaction volume.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Revenues related to our call center business in 2004
increased by Php286 million, or 31%, to <br>
Php1,213 million from Php927 million in 2003, primarily due to the combined
effects of the following: (1) Vocativ&#146;s upward price adjustment for voice and
VoIP, and an increase in programs being handled; and (2) an upward price
adjustment by Parlance for its inbound and outbound projects, coupled with an
increase in the number of registered minutes.</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Call
center revenues accounted for 58% and 63% of our total information and
communications technology service revenues in 2004 and 2003, respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Internet and gaming</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">Internet and gaming service revenues
consist of: </p>

<p style='margin-left:.5in;line-height:7.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
revenues derived from actual usage
of internet access network by prepaid subscribers and any unused peso value of
expired prepaid cards or electronic internet time loads, net of discounts given
to dealers; </p>

<p style='margin-left:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
monthly service fees from postpaid
corporate and consumer subscribers, including (1) charges for internet usage in
excess of allocated free plan internet hours; (2) one-time installation and
activation fees; and (3) fees for value added services such as additional
mailbox accounts;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
monthly service fees on value
added services, including e-mail and web hosting services;</p>

<p style='margin-left:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
one-time fees generated from
reselling internet-related solutions such as security solutions and domain
registration; and</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
share in revenues of text, voice
and internet messages for cellular, fixed line and internet-based content and
applications.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Revenues from our internet and gaming business for 2004 increased by
Php189 million, or 50%, to Php569 million from Php380 million in 2003 primarily
due to the consolidation of DigiPar in June 2004.  Our internet and gaming
revenues accounted for 27% and 26% of total service revenues from information
and communications technology business in 2004 and 2003, respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Vitro&#153; </i>data
center</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">ePLDT operates an internet data center under the brand
name <i>Vitro&#153;</i>.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:0in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>Vitro&#153;</i> revenues consist of:</p>

<p style='margin-left:0in;text-indent:0in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
monthly service fees derived from
co-location services, server hosting, hardware and software maintenance
services, website development and maintenance services, web hosting, data
recovery security services and other value added services;</p>

<p style='margin-left:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
installation charges and other
one-time fees associated with the set-up; and </p>

<p style='margin-left:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
monthly service fees or one-time
fees generated from professional services of Vitro&#146;s certified professionals.</p>

<p style='margin-left:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
2004, <i>Vitro&#153;</i> contributed revenues of Php243 million, an increase of
Php123 million, or 103%, from Php120 million in 2003, primarily due to an
increase in co-location revenues, server hosting and other services.   <i>Vitro&#153;</i>
revenues accounted for 12% and 8% of total service revenues from information
and communications technology business in 2004 and 2003, respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Others</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Other revenues consist of:</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
fees generated for issuance of
digital certificates; and </p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
revenues derived from IT
helpdesk/contact center solutions and terminals for credit, debit and credit
card transactions.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Revenues from other businesses related to our
information and communications technology segment in 2004 increased by Php15
million, or 38%, to Php55 million from Php40 million in 2003 largely due to IT
helpdesk/contact center services rendered coupled with an increase in number of
digital certificates sold.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Please
refer to <i>Note 8 &#150; Investments</i> to the accompanying consolidated financial
statements in Item 18 for further discussion on ePLDT&#146;s other information and
communications technology services.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i>Non-service Revenues</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Non-service
revenues consist of sales generated from reselling Microsoft software licenses
and Cisco hardware equipment.  In 2004, non-service revenues generated by our
information and communications technology business increased by Php5 million,
or 2%, to Php321 million prompted by higher point of product sales of Cisco
equipment and Microsoft licenses.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Operating Expenses</i></b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Operating
expenses associated with our information and communications technology business
totaled Php3,035 million in 2004, an increase of Php763 million, or 34%, from
Php2,272 million in 2003, primarily due to an increase in compensation and
benefits, selling and promotions and asset impairment charge.  However, as a
percentage of our information and communications technology operating revenues,
operating expenses related to our information and communications technology
business decreased to 126% in 2004 from 127% in 2003.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
following table shows the breakdown of our total information and communications
technology-related operating expenses for the years ended December 31, 2004 and
2003 and the percentage of each expense item to the total:</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:96.86%;border-collapse:collapse;border-collapse:collapse !msorm'>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=13 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Increase (Decrease)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:.15in' style='page-break-inside:
 avoid !msorm;height:.15in !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:.15in'>
 <p style='margin-left:4.5pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=11 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:.15in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:.15in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:.15in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Information and communications technology services:</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Compensation and benefits(1)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php900</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">30</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php533</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">23</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">Php367</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">69</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Asset impairment </p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">617</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">20</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:5.75pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">387</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:5.75pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">17</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">230</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">59</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.95pt' style='page-break-inside:
 avoid !msorm;height:4.95pt !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.95pt'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Rent</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.95pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">366</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.95pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">12</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.95pt'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.95pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">337</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.95pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">15</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.95pt'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">29</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.95pt'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.95pt'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">9</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Depreciation and amortization</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">339</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">11</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">314</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">14</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">25</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Maintenance</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">316</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">184</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">132</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">72</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Selling and promotions</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">291</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">35</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">256</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">731</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Professional and other service fees</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">64</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">65</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">(1)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Taxes and licenses</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">21</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">18</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">17</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Insurance and securities</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">(3)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(30)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Provision for inventory obsolescence</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">12</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">(9)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(75)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Provision for doubtful accounts</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">70</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(70)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(100)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Other operating expenses</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">111</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">307</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">13</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(196)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(64)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.5pt' style='page-break-inside:
 avoid !msorm;height:3.5pt !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total </p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php3,035</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php2,272</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php763</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">34</p>
 </td>
 </tr>
 <tr height=0>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 </tr>
</table></center></div>

<p style='punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other;
border:none' style="margin-top:0;margin-bottom:0">____________</p>

<p style='text-indent:.5in;line-height:3.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">(1)   Includes salaries and benefits, incentive plan,
pension and MRP costs.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Compensation and benefits increased by Php367 million, or 69%, to Php900 million
mainly due to the expansion of our call center facilities and consolidation of
DigiPar which resulted in an increase in headcount coupled with an increase in
salaries, bonuses and various incentives of employees.</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Asset impairment increased by Php230 million, or 59%,
to Php617 million due to an impairment provision recognized in 2004 in relation
to an investee company.  In 2003, we retired certain equipment with net book
values aggregating Php387 million primarily as a result of the abandonment of a
reloadable chip-based cash card project.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Rent expense increased by Php29 million, or 9%, to
Php366 million due to the consolidation of DigiPar with the opening of several <i>Netopia</i>
branches countrywide and abroad in 2004.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Depreciation and amortization charges increased by
Php25 million, or 8%, to Php339 million primarily due to an increase in
depreciable asset base in relation to the expansion of our call center business
segment.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Maintenance expenses increased by Php132 million, or
72%, to Php316 million primarily due to a change in maintenance agreement for
higher annual maintenance in respect of our digital certificate business.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Selling and promotion expenses increased by Php256
million, or 731%, to Php291 million mainly as a result of increased advertising
and promotions expense by <i>Netopia</i>.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in;line-height:
94%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Professional
and other service fees decreased by Php1 million, or 2%, to Php64 million
primarily due to lower training and shuttling expenses relating to our call
center representatives.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Taxes
and licenses increased by Php3 million, or 17%, to Php21 million mainly on
account of higher business-related taxes paid in 2004 as compared to 2003.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Insurance
and securities decreased by Php3 million, or 30%, to Php7 million primarily due
to the divestment of Contact World, with high insurance and security costs in
2003.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Provision
for inventory obsolescence decreased by Php9 million, or 75%, mainly pertaining
to maintenance-related inventory items of Infocom.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Provision for doubtful accounts decreased by Php70
million, or 100%, primarily due to specifically identified uncollectible
subscriber accounts of Infocom already provided for in 2003.</p>

<p style='text-indent:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Other operating expenses decreased by Php196 million,
or 64%, to Php111 million in line with our over-all cost containment
initiatives.</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left' style="margin-top:0;margin-bottom:0"><i>Operating Loss</i></p>

<p align=left style='text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">Our information and communications technology
business registered an operating loss of Php634 million in 2004, an increase of
Php145 million, or 30%, compared with an operating loss of Php489 million in
2003 mainly due to higher operating expenses mainly from the call center
business in 2004 compared to 2003.</p>

<p align=left style='text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left' style="margin-top:0;margin-bottom:0"><i>Financing Costs</i></p>

<p align=left style='text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Financing costs associated with our information and
communications technology business, composed primarily of interest on loans and
related expenses, decreased by Php21 million, or 35%, to Php39 million
primarily due to lower interest expense on loans as debt balances declined in
2004 as compared to 2003.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0"><b><i>Interest
Income</i></b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
information and communications technology business generated an interest income
totaling Php18 million in 2004, an increase of Php11 million, or 157%, compared
to Php7 million in 2003 mainly attributable to ePLDT Vitro&#146;s higher average
cash balances.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-bottom:0in;margin-bottom:.0001pt;text-align:left;
page-break-after:auto' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><i>Other Income - net</i></h6>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">All other income/gains which do not fall under
service and non-service revenues are included under this classification.  Other
income generated from our information and communications technology business
segment declined by 88% to Php14 million in 2004 from Php120 million in 2003
due to a gain on the divestment of Contact World, Inc., a call center facility,
in 2003.  </p>

<p align=left style='text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Loss Before Income Tax, Cumulative Effect of Change in Accounting
Policy and Minority Interest in Net Income of Consolidated Subsidiaries</i></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our information and communications technology business
recorded a loss before income tax<b><i>, </i></b>cumulative effect of change in
accounting policy and minority interest in net income of consolidated
subsidiaries amounting to Php643 million in 2004 compared to a loss before
income tax of Php432 million in 2003.  The increase in net loss was mainly due
to a substantial increase in information and communications technology-related
expenses of 34%, as well as an 88% decline in other income.</p>

<p align=left style='text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-bottom:0in;margin-bottom:.0001pt;text-align:left' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><i>Provision for (Benefit from) Income Tax </i></h6>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Provision for income
tax amounted to Php59 million in 2004 an increase of Php123 million, or 192%,
as compared to the benefit from income tax of Php64 million recognized in
2003.  This was principally due to Infocom&#146;s reversal of recorded deferred
income tax asset of Php64 million in 2004.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-bottom:0in;margin-bottom:.0001pt;text-align:left' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><i>Net Loss </i></h6>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">In 2004, our information and
communications technology business segment registered a net loss of Php699
million, an increase of Php371 million, or 113%, compared to a net loss of
Php328 million posted in 2003.  This reflects the recorded increase in net
asset impairment charges and a reported net loss of Php116 million by Infocom
in 2004 compared to the net income of Php20 million in 2003, partially offset
by the increase in net income contribution of our call center business.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc69572324">2003 Compared to 2002</a></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='line-height:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>On a Consolidated Basis</b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Consolidated Operating Revenues </i></b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Largely driven by the continued strong
growth of our wireless business, particularly Smart&#146;s cellular business, our
consolidated operating revenues for 2003 increased by Php17,369 million, or 19%,
to Php111,200 million from Php93,831 million in 2002.  As a percentage of our consolidated
operating revenues, our wireless business revenues increased to 59% in 2003
compared to 52% in 2002.  </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The
following table shows the breakdown of our consolidated operating revenues for
the years ended December 31, 2003 and 2002 by business segment:</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:93.8%;border-collapse:collapse;border-collapse:collapse !msorm'>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=12 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=center style=';text-align:
 center;text-indent:1.55pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Increase (Decrease)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2002</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-top:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=12 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=center style=';text-align:
 center;text-indent:1.55pt' style="margin-top:0;margin-bottom:0"><b>(in millions)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';text-align:
 right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';text-align:
 right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';text-align:
 right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';text-align:
 right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';text-align:
 right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Wireless </p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php65,183</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">59</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php48,252</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">52</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 5.75pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">Php16,931</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:1.45pt' style="margin-top:0;margin-bottom:0">35</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Fixed line</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">46,820</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">42</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">46,186</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">49</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 5.75pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">634</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';;text-align:right;text-indent:1.45pt' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Information and communications technology </p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,783</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">977</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 5.75pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">806</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:1.45pt' style="margin-top:0;margin-bottom:0">82</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Inter-segment revenues</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(2,586)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:1.45pt;text-align:right' style="margin-top:0;margin-bottom:0">(1,584)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">(1,002)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:1.45pt' style="margin-top:0;margin-bottom:0">63</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php111,200</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 2.25pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php93,831</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 2.25pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php17,369</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 2.25pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:1.45pt' style="margin-top:0;margin-bottom:0">19</p>
 </td>
 </tr>
 <tr height=0>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>Consolidated
Operating Expenses</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
consolidated operating expenses in 2003 decreased by Php3,981 million, or 5%,
to Php77,821 million from Php81,802 million in 2002.  The decrease was
primarily due to a decrease in operating expenses associated with our fixed
line business partially offset by the increase in operating expenses associated
with our wireless business and information and communications technology
business.  As a percentage of our consolidated operating revenues, consolidated
operating expenses decreased to 70% in 2003 from 87% in 2002.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:auto' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
following table shows the breakdown of our consolidated operating expenses for
the years ended December 31, 2003 and 2002 by business segment:</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:94.78%;border-collapse:collapse;border-collapse:collapse !msorm'>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=14 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=center style=';text-align:
 center;text-indent:1.55pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=4 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Change </b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2002</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-top:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=14 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=center style=';text-align:
 center;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Wireless </p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php46,264</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">59</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php37,915</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">46</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 5.75pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">Php8,349</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 text-indent:1.45pt' style="margin-top:0;margin-bottom:0">22</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Fixed line</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">32,303</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">42</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">43,793</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">54</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.45pt' style="margin-top:0;margin-bottom:0">(11,490)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:1.45pt' style="margin-top:0;margin-bottom:0">(26)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Information and communications technology </p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,272</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,458</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 5.75pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">814</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 text-indent:1.45pt' style="margin-top:0;margin-bottom:0">56</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Inter-segment transactions</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">(3,018)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:.7pt;text-align:right' style="margin-top:0;margin-bottom:0">(4)</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 .7pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,364)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 5.75pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">(1,654)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#D9D9D9;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:1.45pt' style="margin-top:0;margin-bottom:0">(121)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total</p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 2.25pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php77,821</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 2.25pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 2.25pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php81,802</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(Php3,981)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 2.25pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:1.45pt' style="margin-top:0;margin-bottom:0">(5)</p>
 </td>
 </tr>
 <tr height=0>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>Consolidated Operating
Income</i></b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Our
consolidated operating income amounted to Php33,379 million in 2003, an
increase of Php21,350 million, or 177%, compared to Php12,029 million in 2002
as a result of the increase in our consolidated operating revenues by 19% and
decrease in our consolidated operating expenses by 5%.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>Consolidated Financing
Costs</i></b></p>

<p style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style="margin-top:0;margin-bottom:0">Financing costs on a consolidated
basis increased by Php6,432 million, or 35%, to Php24,783 million due to higher
foreign exchange losses pertaining to the foreign exchange revaluation of the
carrying values of financial liabilities as the level of peso depreciation was
higher in 2003 as compared to 2002, partially offset by lower interest expense
and related items owing to lower debt balances in 2003 compared to 2002.  </p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>Consolidated Interest
Income</i></b></p>

<p style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Interest
income on a consolidated basis increased by Php40 million, or 8%, to Php513
million in 2003 compared to Php473 million in 2002 mainly attributable to our
wireless business particularly Smart.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Consolidated Other Income - Net</i></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in;
line-height:normal;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Other income - net on a consolidated
basis totaled Php799 million in 2003, a decrease of Php598 million, or 43%,
compared to the same period in 2002.  The decrease was mainly due to the net
gain of Php633 million relating to certain financial instruments terminated in
2002 from our fixed line business.</p>

<p style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Consolidated Income (Loss) Before Income Tax</i></b><b><i>, Cumulative Effect of Change in Accounting Policy and
Minority Interest in Net Income of Consolidated Subsidiaries</i></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our
consolidated income before income tax<b><i>,
</i></b>cumulative effect of change in
accounting policy and minority interest in net income of consolidated
subsidiaries in 2003 was Php9,820
million, compared to a loss in 2002 of Php4,594 million.</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">In 2003 and 2002, our effective
corporate tax rate on a consolidated basis was 14% and 31%, respectively.  Our
effective corporate tax rate was lower than the 32% statutory corporate tax
rate due to the following: (1) the effect of a three-year income tax holiday
granted to Smart by the Philippine BOI in connection with the pioneer status it
awarded to Smart&#146;s GSM network expansion project; and (2) income already
subjected to a final tax or a lower tax rate.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Smart&#146;s
three-year income tax holiday, which expired in May 2004, applied to the
incremental income generated from its GSM network expansion.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Consolidated Net Income</i></b></p>

<p style='line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our consolidated net income in 2003 was Php11,045
million, compared to a loss of Php6,158 million in 2002.  The following table
shows the breakdown of our consolidated net income (loss) for the years ended December 31, 2003 and 2002 by business segment:</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:96.7%;border-collapse:collapse;border-collapse:collapse !msorm'>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=13 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=center style=';text-align:
 center;text-indent:1.55pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=4 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Change</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2002</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-top:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=13 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=center style=';text-align:
 center;text-indent:1.55pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';text-align:
 right;text-indent:1.55pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';text-align:
 right;text-indent:1.55pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';text-align:
 right;text-indent:1.55pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';text-align:
 right;text-indent:1.55pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';text-align:
 right;text-indent:1.55pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Wireless </p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-top:0in;margin-right:4.3pt;
 margin-bottom:0in;margin-left:1.45pt;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php13,275</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">120</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:5.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php5,931</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(96)</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 4.3pt;text-align:right;text-indent:1.55pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-top:0in;margin-right:2.9pt;
 margin-bottom:0in;margin-left:1.45pt;margin-bottom:.0001pt;text-align:right;
 text-indent:1.45pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php7,344</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:4.5pt;text-align:right;
 text-indent:1.45pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">124</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Fixed line</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,902)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(17)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-top:0in;margin-right:2.15pt;
 margin-bottom:0in;margin-left:2.9pt;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(11,602)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">188</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.45pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">9,700</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-top:0in;margin-right:4.5pt;
 margin-bottom:0in;margin-left:1.45pt;margin-bottom:.0001pt;text-align:right;
 text-indent:1.45pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">84</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Information and communications technology </p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(328)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(3)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-top:0in;margin-right:2.15pt;
 margin-bottom:0in;margin-left:2.9pt;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(487)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#D9D9D9;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.45pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">159</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style=';margin-right:
 2.9pt;text-align:right;text-indent:1.55pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#D9D9D9;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-top:0in;margin-right:4.5pt;
 margin-bottom:0in;margin-left:1.45pt;margin-bottom:.0001pt;text-align:right;
 text-indent:1.45pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">33</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt' style='page-break-inside:
 avoid !msorm;height:1.0pt !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total</p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 2.25pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-top:0in;margin-right:4.3pt;
 margin-bottom:0in;margin-left:1.45pt;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php11,045</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 2.25pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 2.25pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php6,158)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 border-bottom:double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-top:0in;margin-right:2.9pt;
 margin-bottom:0in;margin-left:1.45pt;margin-bottom:.0001pt;text-align:right;
 text-indent:1.45pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php17,203</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 2.25pt !msorm;padding:0in 0in 0in 0in !msorm;height:1.0pt'>
 <p align=right style='margin-right:4.5pt;text-align:right;
 text-indent:1.45pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">279</p>
 </td>
 </tr>
 <tr height=0>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b>On Business Segment Basis</b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b>Operating Revenues</b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>Wireless</i></b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The following table summarizes our total operating revenues from our
wireless business for the years ended December 31, 2003
and 2002 by service segment:</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:89.94%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:1.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=11 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Increase (Decrease)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2002</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=11 valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.35pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:10.35pt'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Wireless services:</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:10.35pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:10.35pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:10.35pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:10.35pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:10.35pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:10.35pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:10.35pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:10.35pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:10.35pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:10.35pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:10.35pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Service Revenues</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-left:13.5pt;text-indent:9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Cellular </p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php52,932</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">81</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php34,500</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-right:5.75pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">72</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php18,432</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">53</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-left:13.5pt;text-indent:9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Satellite, VSAT and others</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,703</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,657</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-right:5.75pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">46</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">54,635</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">84</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">36,157</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-right:5.75pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">75</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">18,478</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">51</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Non-service Revenues</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-right:5.75pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-left:13.5pt;text-indent:9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Sale of handsets and SIM-packs</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,548</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,095</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-right:5.75pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">25</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,547)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(13)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:1.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total Wireless Operating Revenues </p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php65,183</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php48,252</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p style='margin-right:5.75pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php16,931</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 padding:0in 0in 0in 0in;height:1.0pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">35</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Service Revenues</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
wireless service revenues increased significantly by Php18,478 million, or 51%,
to Php54,635 million in 2003 from Php36,157 million in 2002 mainly as a result
of the continued strong growth in revenues generated from Smart&#146;s and Piltel&#146;s
cellular services.  Accordingly, as a percentage of our total wireless
operating revenues, service revenues increased to 84% in 2003 from 75% in 2002.
</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.25in' style="margin-top:0;margin-bottom:0"><i>Cellular
Service</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Our
cellular service revenues in 2003 amounted to Php52,932 million, an increase of
Php18,432 million, or 53%, from Php34,500 million in 2002.  Cellular service
revenues accounted for 81% of total wireless operating revenues in 2003,
compared to 72% in 2002.  This increase was primarily due to increased traffic
volumes and the 51% growth in our wireless subscriber base, which increased by
4,347,891 from 8,599,306 as at December 31, 2002 to 12,947,197 as at December
31, 2003.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">The table below shows our cellular subscriber base as
at December 31, 2003 and 2002:</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:86.82%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:4.5pt;margin-bottom:.0001pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=7 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>As at December 31,</b></p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Increase</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2002</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>

 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style=';text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style=';text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Cellular subscriber base </p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,947,197</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,599,306</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,347,891</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">51</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:13.5pt;margin-bottom:.0001pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Prepaid </p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,698,220</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,422,658</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,275,562</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">51</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:13.5pt;margin-bottom:.0001pt;text-align:justify;text-indent:
 9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Smart </p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9,831,135</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,649,038</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,182,097</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">48</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:13.5pt;margin-bottom:.0001pt;text-align:justify;text-indent:
 9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Piltel</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,867,085</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,773,620</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,093,465</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">62</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:13.5pt;margin-bottom:.0001pt;text-align:justify' style="margin-top:0;margin-bottom:0">Postpaid</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">248,977</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">176,648</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">72,329</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">41</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in;line-height:1.0pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:86.82%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Of our 12,947,197 subscribers as at December 31, 2003,
prepaid subscribers accounted for approximately 98% while postpaid subscribers
accounted for the remaining 2%.  Our prepaid subscriber base grew by 51% to
12,698,220 as at December 31, 2003 from 8,422,658 as at December 31, 2002,
whereas our postpaid subscriber base increased by 41% to 248,977 as at December
31, 2003 from 176,648 as at December 31, 2002.  Smart&#146;s prepaid and postpaid
net subscriber activations totaled 3,182,097 and 72,329, respectively, in 2003,
or a quarterly average addition of 795,524 prepaid and 18,082 postpaid
subscribers.  On the other hand, Piltel&#146;s prepaid subscribers increased by 62%
to 2,867,085 as at December 31, 2003 from 1,773,620 as at December 31, 2002 or
a quarterly average addition of 273,366 subscribers.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Satellite, VSAT and Other Services</i></p>

<p style='line-height:10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our revenues from satellite, VSAT and other services
consist mainly of rentals received for the lease of Mabuhay Satellite's
transponders and Telesat's VSAT facilities to other companies and charges for
ACeS Philippines&#146; satellite phone service.  Total revenues from these services
for 2003 amounted to Php1,703 million, an increase of Php46 million, or 3%,
from Php1,657 million for 2002.</p>

<p style='line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Non-service Revenues</i></p>

<p style='line-height:10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our wireless non-service revenues decreased by
Php1,547 million, or 13%, to Php10,548 million from Php12,095 million in 2002.
The decrease was primarily attributable to lower sale of handsets in 2003 as
compared to 2002.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in;line-height:10.0pt' style="margin-top:0;margin-bottom:0"><b><i>Operating Expenses</i></b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Operating expenses associated with our wireless
business in 2003 amounted to Php46,264 million, an increase of Php8,349
million, or 22%, from Php37,915 million in 2002.  A significant portion of this
increase was attributable to Smart&#146;s non-cash charges, primarily depreciation
and amortization charges coupled with an increase in cash charges consisting
primarily of cost of satellite air time, compensation and benefits and selling
and promotions.  As a percentage of our wireless operating revenues, operating
expenses associated with our wireless business decreased to 71% in 2003 from
79% in 2002. </p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The
following table summarizes our total wireless-related operating expenses for
the years ended December 31, 2003 and 2002 and the percentage of each expense item to
the total:</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:96.82%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=11 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Increase (Decrease)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2002</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=11 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Wireless services</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.95pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.95pt'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cost of cellular handsets and SIM-packs sold</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php15,790</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">34</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.95pt'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php17,232</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">46</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:4.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:4.95pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php1,442)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:4.95pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:4.95pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(8)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Depreciation and amortization</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,183</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">26</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,907</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">18</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,276</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">76</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Compensation and benefits</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,801</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,710</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,091</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">40</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Selling and promotions</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,310</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,460</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">850</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">35</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Rent</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,235</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,966</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">269</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Maintenance</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,051</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,365</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">686</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">50</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cost of satellite air time</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,919</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">50</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,869</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,738</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Taxes and licenses</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,174</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">466</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">708</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">152</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Amortization of intangible assets</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">766</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">766</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Insurance and securities</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">756</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">694</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">62</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Professional and other service fees</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">624</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,225</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(601)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(49)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Asset impairment </p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">288</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">75</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">213</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">284</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.0pt'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Provision for inventory obsolescence</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">87</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.0pt'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">390</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:4.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:4.0pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(303)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:4.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:4.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(78)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Provision for doubtful accounts</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">72</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">456</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(384)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(84)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Other operating expenses</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,208</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,153</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">55</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.5pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php46,264</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php37,915</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php8,349</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">22</p>
 </td>
 </tr>
</table></center></div>

<p style='line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Costs of cellular handsets and
SIM-packs sold decreased by Php1,442 million, or 8%, to Php15,790 million due
to lower prices of cellular handset negotiated with suppliers and lower handset
sales in 2003 compared to 2002.  </p>

<p style='line-height:10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Depreciation
and amortization charges increased by Php5,276 million, or 76%, to Php12,183
million primarily due to an increase in Smart&#146;s depreciable asset base owing to
continuing network expansion and upgrades.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Compensation and benefits increased by Php1,091
million, or 40%, to Php3,801 million primarily due to increased salaries,
benefits and performance bonuses of Smart&#146;s employees.  In addition, Smart accrued for an additional share
under the enhanced employee retirement fund approved by Smart&#146;s Board of
Directors in October 2003.  </p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Selling
and promotion expenses increased by Php850 million, or 35%, to Php3,310 million
mainly due to an increase in advertising and promotion expense on account of
the launching of new services such as <i>addict mobile</i>, <i>Smart Load </i>and<i>
Pasa Load</i>. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Rent
expenses increased by Php269 million, or 14%, to Php2,235 million mainly due to higher site rental cost incurred by
Smart for its growing number of cell sites and base stations, in line with its
network expansion, partially offset by lower site and circuit rental by Piltel
resulting from the decommissioning efforts done in 2002 and 2003.  As at December 31, 2003, we
had 2,914 GSM cell sites and 3,904 base stations, compared with 2,110 GSM cell
sites and 2,777 base stations as at December 31, 2002</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Maintenance
expenses increased by Php686 million, or 50%, to Php2,051 million mainly due to
higher site utility, repairs and other maintenance-related expenses associated
with the expansion and upgrade of Smart&#146;s cellular network equipment; increased
office and telecenter utilities expenses; and increased computer hardware and
software license expense.</p>

<p style='text-indent:.5in;border:none' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">Cost of satellite air time increased by Php1,869
million to Php1,919 million mainly due to the change in the basis of
recognizing air time cost.  Satellite air time cost was accrued at a fixed
amount per month based on the payment schedule in a standstill agreement in
consideration for unlimited air time access in 2003.  Please see <i>Note 16 &#150;
Related Party Transactions</i> and <i>Note 22 &#150; Provisions and Contingencies</i>
to the accompanying consolidated financial statements in Item 18 for further
discussion.  </p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Taxes and licenses increased by Php708 million, or 152%, to Php1,174 million mainly due to an increase in Smart&#146;s
business-related taxes, NTC supervision and regulation fees and disallowed
input taxes.  </p>

<p style='text-indent:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Amortization
of intangible assets amounted to Php766 million in 2003 and 2002 and relate to
the amortization of Smart&#146;s customer list.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Insurance
and securities increased by Php62 million, or 9%, to Php756 million mainly due to the growth in the number of Smart&#146;s cell
sites and the increase in the cost of equipment insured as a result of the
continued growth and expansion of its GSM network.</p>

<p style='text-indent:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Professional and other service fees decreased by
Php601 million, or 49%, to Php624 million mainly as a result of a reduction in
legal and bill collection service fees.</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Asset
impairment charges increased by Php213 million, or 284%, to Php288 million
mainly due to impairment losses recognized in respect of Piltel&#146;s AMPS/CDMA
network assets.</p>

<p style='text-indent:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Provision for inventory obsolescence decreased by
Php303 million, or 78%, to Php87 million mainly due to lower inventory balances
in 2003. </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">Provision for doubtful accounts decreased by Php384
million, or 84%, to Php72 million primarily due to certain subscriber and
carrier accounts which have been fully provided for in 2002.  </p>

<p style='text-indent:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Other operating expenses increased by Php55 million,
or 5%, to Php1,208 million mainly due to
increases in Smart&#146;s various business and operational-related expenses such as
facility usage fees, training, travel, supplies, printing, and communication
expenses.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>Operating
Income</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our operating income related to our wireless business increased by
Php8,582 million, or 83%, to Php18,919 million in 2003 compared to Php10,337
million in 2002 mainly due to the substantial increase in cellular business as
a result of the sustained growth in our subscriber base.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>Financing
Costs</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our financing costs associated with our wireless business
increased by Php1,290 million, or 45%, to Php4,133 million, primarily due to
higher foreign exchange losses as the level of depreciation of the peso was
higher in 2003 compared to 2002 and partially offset by lower interest expense
on loans due to lower debt balances in 2003 compared to 2002.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">The breakdown of our financing costs for our wireless
business for the years ended December 31, 2003 and 2002 is as follows:</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0  style='width:6.25in;margin-left:5.4pt;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  colspan=7 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  colspan=3 valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Change</b></p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2002</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=7 valign=top style=' border:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Interest on loans and related items</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php1,348</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php1,813</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php465)</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(26)</p>
 </td>
 </tr>
 <tr style='height:9.45pt'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:9.45pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Foreign exchange (gains) losses</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:9.45pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">2,139</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:9.45pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">650</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:9.45pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:9.45pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,489</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:9.45pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:9.45pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">229</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Accretion of financial
 liabilities</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">449</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">401</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">48</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Loss (gain) on derivative
 transactions</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">165</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:1.45pt;text-align:right' style="margin-top:0;margin-bottom:0">(60)</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">225</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">375</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Financing charges</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">32</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">39</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:1.45pt;text-align:right' style="margin-top:0;margin-bottom:0">(7)</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(18)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php4,133</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php2,843</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php1,290</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">45</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>Interest
Income</i></b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Interest
income generated by our wireless business amounted to Php368 million in 2003,
an increase of Php227 million, or 161% compared to Php141 million in 2002
mainly attributable to Smart&#146;s higher average cash balances coupled with higher
interest rates in 2003 compared to 2002.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Other Income - net</i></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our wireless business segment generated
other income - net of Php87 million in 2003 from a loss of Php264 million in
2002.  The change was mainly due to higher management fees paid to Smart.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>Income
Before Income Tax</i></b><b><i>,
Cumulative Effect of Change in Accounting Policy and Minority Interest in Net
Loss of Consolidated Subsidiaries </i></b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Our income before income tax<b><i>, </i></b>cumulative
effect of change in accounting policy and minority interest in net loss of
consolidated subsidiaries in 2003 was
Php15,163 million, an increase of Php7,866 million, or 108%, compared to
Php7,297 million in 2002 mainly due to a substantial increase in our wireless
operating revenues, partially offset by an increase in our wireless operating
expenses and financing costs.</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in;line-height:10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Provision for Income Tax</i></b></p>

<p style='text-indent:0in;line-height:10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Provision
for income tax increased by Php455 million, or 37%, to Php1,672 million in 2003
from Php1,217 million in 2002 mainly due to higher operating income. </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in;line-height:10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Net Income</i></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our
wireless business segment recorded a net income of Php13,275 million 2003, an
increase of Php7,344 million, or 124%, over Php5,931 million registered in 2002
due primarily to the growth in our cellular revenues, partially offset by a 22%
increase in wireless expenses.</p>

<p style='line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Fixed
Line</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>Operating Revenues </i></b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Operating
revenues generated from our fixed line business in 2003 totaled Php46,820
million, an increase of Php634 million, or 1%, from Php46,186 million in 2002.
This increase was primarily due to increased revenues generated from
international long distance service and data and other network services,
partially offset by lower revenues generated from national long distance
service, local exchange service and miscellaneous services.  As a percentage of
our total operating revenues, fixed line revenues decreased to 41% in 2003 from 48% in 2002.  Likewise, as a percentage of our
total service operating revenues, fixed line service revenues decreased to 46%
in 2003 from 56% in 2002, principally due to the continued strong growth of our
wireless business.</p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table summarizes our operating revenues
from our fixed line business for the years ended December 31, 2003 and 2002 by
service segment:</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:93.16%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=11 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Increase (Decrease)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2002</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=11 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Fixed line services:</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Service Revenues</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Local
 exchange</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php20,728</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">44</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php21,345</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">46</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">(Php617)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">(3)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">International
 long distance</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">12,767</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">27</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">10,637</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">23</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">2,130</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">20</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">National
 long distance</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">6,561</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">14</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">7,818</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">17</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">(1,257)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">(16)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Data and other network</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">5,978</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">13</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">5,561</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-right:5.75pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">12</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">417</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Miscellaneous</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">786</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-right:5.75pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">825</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">(39)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">(5)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total Fixed Line Operating Revenues </p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php46,820</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php46,186</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">Php634</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 </tr>
</table></center></div>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:8.0pt' style="margin-top:0;margin-bottom:0">Service Revenues</p>

<p style='line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.25in;line-height:8.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>Local Exchange Service</i></p>

<p style='line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table summarizes key measures of our
local exchange service business segment as at and for the years ended December 31, 2003 and
2002:</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:94.44%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=7 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December
 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Increase (Decrease)</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2002</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:4.5pt;margin-bottom:.0001pt;line-height:normal;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total local exchange service revenues (in millions) </p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php20,728</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php21,345</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php617)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(3)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Number of fixed lines in service</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,185,951</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,188,612</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2,661)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:4.5pt' style="margin-top:0;margin-bottom:0">Number
 of fixed line employees</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right' style="margin-top:0;margin-bottom:0">10,518</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right' style="margin-top:0;margin-bottom:0">12,351</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(1,833)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(15)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:4.5pt' style="margin-top:0;margin-bottom:0">Number
 of fixed lines in service per employee</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right' style="margin-top:0;margin-bottom:0">208</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right' style="margin-top:0;margin-bottom:0">177</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">31</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">18</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Revenues from our local exchange
service in 2003 decreased by Php617 million, or 3%, to Php20,728 million from
Php21,345 million in 2002.  The decrease was primarily due to the (1) shift in
subscriber preference from postpaid to prepaid services, which generate lower
average revenue per subscriber, and (2) decline in installation revenues due to
a promotion in 2003 which waived installation cost of subscribers in an effort
to stimulate subscriber growth, partially offset by adjustments in our monthly
local service rates.  The percentage contribution of local exchange revenues to
our total fixed line service revenues decreased to 44% in 2003 from 46% in
2002.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Fixed
line net reduction in 2003 was 2,661 as compared to a net addition of 14,530 in
2002.  While fixed line additions totaled 114,277 for prepaid fixed line
services, postpaid fixed lines in service declined by 116,938 in 2003.  As at December 31, 2003, postpaid and prepaid fixed line subscribers totaled 1,828,647 and
357,304, respectively, which accounted for approximately 84% and 16%,
respectively, of total fixed lines in service.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Pursuant to a currency exchange rate adjustment
mechanism authorized by the NTC, we implemented 11 upward adjustments and three
downward adjustments in our monthly local service rates in 2003, compared to 13
upward adjustments and six downward adjustments in 2002.  See &#147;Item 4.
Information on the Company &#150;&#150; Fixed Line &#150;&#150; Rates&#148; for more details relating to
the exchange rate adjustment mechanism.  The average peso-to-dollar rate in
2003 was Php54.215 to US$1.00, compared to the average of Php51.583 to US$1.00
in 2002.  This change in the average peso-to-dollar rate translated to a peso depreciation
of 5%, which resulted in an average net increase of 5% in our monthly local
service rates in 2003. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>International Long Distance Service</i></p>

<p style='text-indent:.5in;line-height:10.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table shows information about our fixed
line international long distance business for the years ended December 31, 2003 and
2002:</p>

<p style='line-height:10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:94.5%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=7 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Increase (Decrease)</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2002</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:4.5pt;margin-bottom:.0001pt;line-height:normal;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Toal international long
 distance revenues (in millions)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php12,767</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php10,637</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php2,130</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">20</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:13.5pt;margin-bottom:.0001pt;line-height:normal;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Inbound</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,614</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,461</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,153</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">25</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:13.5pt;margin-bottom:.0001pt;line-height:normal;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Outbound</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,153</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,176</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(23)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">International call volumes (in million minutes,
 except call ratio)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:13.5pt;margin-bottom:.0001pt;line-height:normal;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">PLDT Group</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,286</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,815</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(529)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(19)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:27.0pt;margin-bottom:.0001pt;line-height:normal;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Inbound</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,128</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,644</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(516)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(20)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:27.0pt;margin-bottom:.0001pt;line-height:normal;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Outbound</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">158</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">171</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(13)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(8)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:27.0pt;margin-bottom:.0001pt;line-height:normal;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Inbound-outbound call ratio</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13.5:1</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">15.5:1</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:5.75pt;
 margin-bottom:0in;margin-left:1.45pt;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
</table></center></div>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
total international long distance revenues increased by Php2,130 million, or
20%, to Php12,767 million in 2003 from Php10,637 million in 2002, primarily as
a result of an increase in our inbound international long distance revenues
principally due to an increase in average inbound termination rates in 2003.
Likewise, the percentage contribution of international long distance revenues
to our total fixed line service revenues increased to 27% in 2003 from 23% in
2002.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
revenues from inbound international long distance calls in 2003 increased by
Php2,153 million, or 25%, to Php10,613 million from Php8,461 million in 2002,
primarily due to an increase in PLDT&#146;s average termination rates and the
positive impact of the depreciation of the average value of the peso relative
to the U.S. dollar, partially offset by the effect of lower inbound call
volumes.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
inbound international long distance call volumes in 2003 decreased by 20% to
2,128 million minutes from 2,644 million minutes in 2002, primarily due to
increased competition from alternative means of long distance communications,
particularly e-mailing, international text messaging and internet telephony,
more inbound calls terminating directly to cellular subscribers and continued
illegal bypass activity.  In addition, the increase in our average termination
rates in 2003 also resulted in reduced inbound call volumes, principally those
being routed through direct facilities from the U.S. to the Philippines.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">After lengthy negotiations commencing in May 2002 with
carriers around the world, PLDT increased its termination rates with carriers
that account for a substantial portion of its international inbound traffic
terminating on its fixed line network to an average of approximately US$0.12
per minute effective February 1, 2003.  Prior to the increase in termination rates, a
substantial portion of PLDT&#146;s international inbound traffic terminating on its
fixed line network was charged an average termination rate of approximately
US$0.08 per minute.  See &#147;Item 8. Financial Information &#150;&#150; Legal Proceedings &#150;&#150;
U.S.
Federal Communications Commission, or FCC, Ruling versus Philippine
Telecommunications Companies&#148;, &#147;Item 8. Financial Information &#150;&#150; Legal Proceedings
&#150;&#150; Investigation by U.S. Department of Justice&#148; and <i>Note 25 &#150; Other Ma</i>tters
to the accompanying consolidated financial statements in Item 18 for further
discussion.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
depreciation of the peso contributed to the increase in our inbound international
long distance revenues in peso terms since settlement charges for inbound calls
are billed in U.S. dollars or in special drawing rights, an established method
of settlement among international telecommunications carriers using values
based on a basket of foreign currencies, that are translated into pesos at the
prevailing exchange rates at the time of billing.</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our
revenues from outbound international long distance calls in 2003 decreased by
Php23 million, or 1%, to Php2,153 million from Php2,176 million in 2002.  The
decline was primarily due to lower outbound call volumes and reduced
international direct dialing, or IDD, rates attributable to our corporate
customers partly offset by the positive impact of the depreciation of the peso
on outbound international long distance service revenues.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">The depreciation of the peso contributed to the
outbound international long distance revenues in peso terms because outbound
calls are charged in U.S. dollar rates and billed to our subscribers in pesos
at the prevailing exchange rates at the time of billing.  This increase,
however, was not sufficient to compensate for the reduced IDD rates
attributable to our corporate customers and the decline in outbound call
volumes.  Our outbound international long distance call volumes declined by 8%
to 158 million minutes in 2003 from 171 million minutes in 2002, primarily due
to cellular substitution (subscribers opting to use cellular for international
outbound calls) and the popularity of alternative means of communications such
as e-mailing and text messaging.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>National Long Distance Service</i></p>

<p style='margin-left:.5in;line-height:8.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table shows our national long distance
revenues and call volumes for the years ended December 31, 2003 and 2002:</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:95.46%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=7 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Decrease</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2002</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:4.5pt;margin-bottom:.0001pt;line-height:normal;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:4.5pt;margin-bottom:.0001pt;line-height:normal;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Total national long distance service
 revenues (in millions)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php6,561</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">Php7,818</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">(Php1,257)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">(16)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">National long distance call volumes (in million
 minutes)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,016</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">2,181</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">(165)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">(8)</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our national long distance revenues decreased by Php1,257
million, or 16%, to Php6,561 million in 2003 from Php7,818 million in 2002 as a
result of lower call volumes and changes in interconnection arrangements with
certain local exchange carriers.  Accordingly, the percentage contribution of
national long distance revenues to our total fixed line service revenues was
down to 14% in 2003 from 17% in 2002.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our national long distance call volumes decreased by
approximately 8% to 2,016 million minutes in 2003 from 2,181 million minutes in
2002.  Cellular substitution and the widespread availability and growing
popularity of alternative non-voice means of communications, particularly
cellular text messaging and e-mailing, have negatively affected call volumes.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The decrease in our national long distance revenues in
2003 compared to 2002 was, however, mitigated by the impact of the launch of
various <i>PLDT Premium Phone Services </i>and rate adjustments.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Effective March
 1, 2003, the rate for
national long distance, or NDD, calls originating from PLDT subscribers and terminating
to other local exchange carriers increased to Php5.00 per minute from a flat rate of Php4.50 per minute.  In addition, NDD calls originating from
and terminating to PLDT was also adjusted to Php5.00
per minute from a flat rate of Php4.50 per
minute effective June
 8, 2003.  Prior to the
implementation of a flat rate of Php5.00 per minute and Php4.50
per minute, NDD rates ranged from Php3.00 per
minute to Php5.00 per minute for calls
terminating to PLDT subscribers and from Php3.50
per minute to Php5.00 per minute on calls
terminating to other networks&#146; subscribers depending on distance. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In 2003, certain local exchange carriers under revenue sharing
arrangements have entered into access charging agreements with PLDT.  Under the
revenue sharing agreements, charges are generally apportioned 30% for the
originating entity, 40% for the backbone owner and another 30% for the
terminating entity.  Under these access charging agreements, the originating
carrier generally pays access charges of (1) Php0.50 per minute for short haul traffic and
Php1.25 per minute for long haul traffic to
the carrier owning the backbone network, and (2) Php1.00 per minute to the terminating carrier.  This change in
interconnection charges resulted to a 2% decrease in average revenue per minute
for calls originating from and terminating to other local exchange carriers.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Data and Other Network Services</i></p>

<p style='text-indent:.5in;line-height:9.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our data and other network services revenues increased
by Php417 million, or 7%, to Php5,978 million in 2003 from Php5,561 million in
2002.  The revenue contribution of this service segment to our total fixed line
service revenues increased to 13% in 2003 from 12% in 2002, primarily
attributed to an increased use of <i>Domestic Frame Relay</i>, <i>I-Gate</i>, <i>DSL,
Equant </i>and <i>ARCSTAR</i> bandwidth services, as well as the launch of
other new network-based services.  We currently expect that demand for, and
therefore revenues generated from, these services will continue to grow in the
foreseeable future.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Traditional
bandwidth services accounted for 50% of the total revenues from our data and
other network services in 2003, broadband/IP-based services accounted for 44%,
and other services accounted for the remaining 6%, compared to 57%, 38% and 5%,
respectively, in 2002.  These percentage changes indicate a continuing shift in
data and other network revenues from traditional bandwidth services to
broadband/IP-based services.  We expect this trend to continue given the
growing demand for broadband transmission of voice, data and video due to the
continued growth of the internet, e-commerce and other online services.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.25in' style="margin-top:0;margin-bottom:0"><i>Miscellaneous</i></p>

<p style='text-indent:40.5pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p align=left style='margin-bottom:0in;margin-bottom:.0001pt;
text-align:left;text-indent:.5in;line-height:normal' style="margin-top:0;margin-bottom:0">Miscellaneous revenues are derived mostly from
directory advertising and facilities rental.  In 2003, these revenues decreased
by Php39 million, or 5%, to Php786 million from Php825
million in 2002, and accounted for approximately 2% of our total fixed line
revenues in 2003 and 2002.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0"><b><i>Operating
Expenses</i></b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Operating
expenses associated with our fixed line business in 2003 totaled Php32,303
million, a decrease of Php11,490 million, or 26%, compared to Php43,793 million
in 2002.  The decrease was primarily due to lower non-cash expenses, mainly
asset impairment charges and depreciation and amortization expenses, partially
offset by the net increase in cash expenses, mainly compensation and benefits
and taxes and licenses.  As a percentage of our total fixed line operating
revenues, fixed line-related expenses decreased to 69% in 2003 as compared to
95% in 2002.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">The following table shows the breakdown of our total
fixed line-related expenses for the years ended December 31, 2003 and 2002 and
the percentage of each expense item to the total:</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:92.76%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=11 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Increase (Decrease)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2002</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=11 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Fixed line services:</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Depreciation and amortization </p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php9,315</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">29</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php10,305</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">24</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(Php990)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(10)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Compensation and benefits</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">8,971</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">28</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">7,836</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">18</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">1,135</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">14</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Provision for doubtful accounts</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,950</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">12</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,659</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">291</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Maintenance</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,081</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,922</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">159</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Rent</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,909</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,828</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">81</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Professional and other service fees</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,129</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,092</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">37</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Selling and promotions</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,055</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,078</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(23)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Taxes and licenses</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">959</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">508</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">451</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">89</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Insurance and securities</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">762</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">654</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">108</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">17</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Provision for inventory obsolescence</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">152</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">86</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">66</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">77</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Asset impairment </p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">13,204</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">30</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(13,204)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(100)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Other operating expenses</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,020</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">621</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">399</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">64</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.5pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php32,303</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php43,793</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(Php11,490)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(26)</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;border:none' style="margin-top:0;margin-bottom:0">Depreciation and amortization charges decreased by Php990 million,
or 10%, to Php9,315 million mainly due to a net decrease in our
regular asset base primarily resulting from asset disposals and impairment
charges for Piltel&#146;s E.O. 109 assets recognized in 2002.</p>

<p style='line-height:10.0pt;punctuation-wrap:hanging;text-autospace:
ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Compensation
and benefits increased by Php1,135 million, or 14%, to Php8,971 million mainly
due to collective bargaining agreement-related increases in salaries and
benefits of PLDT employees coupled with an increase in MRP cost of Php1,560
million in 2003 representing payments to 1,862 affected employees, partially
offset by the effect of the reduction in headcount due to PLDT&#146;s MRP.  See <i>Note
18 &#150; Operating Revenues and Expenses</i> to the accompanying consolidated
financial statements in Item 18 for further discussion on PLDT&#146;s MRP.</p>

<p style='text-indent:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Provision
for doubtful accounts increased by Php291 million, or 8%, to Php3,950 million
primarily on account of higher provisions by PLDT for anticipated uncollectible
accounts from various specifically identified domestic telecommunications
carriers.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Maintenance expenses increased by Php159 million, or
5%, to Php3,081 million primarily due to higher maintenance costs of inside
plant facility, computer and peripherals and submarine cable in 2003 as
compared to 2002, partially offset by lower maintenance costs on outside plant
facilities.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Rent expenses increased by Php81 million, or 4%, to
Php1,909 million mainly due to higher rentals paid by PLDT to suppliers of
customer premises equipment as part of its bundled services to corporate
customers partially offset by reduced number of leased transponders.</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Professional and other service fees increased by Php37
million, or 3%, to Php1,129 million as a result of higher collection agency
fees on account of higher collection of final accounts and payment of higher
legal fees in 2003 for various services, partially offset by lower advisory
fees due to a decrease in number of consultants in line with PLDT&#146;s cost
management efforts.</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Selling
and promotion expenses decreased by Php23 million, or 2%, to Php1,055 million
mainly as a result of reduced corporate public relations expenses, partially
offset by an increase in PLDT&#146;s promotional activities in relation to the
launch of <i>Hype, DSL</i> and other <i>Premium Phone Service </i>variants.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Taxes
and licenses increased by Php451 million, or 89%, to Php959 million mainly on
account of higher business-related taxes paid and accrued in 2003 as compared
to 2002.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Insurance
and securities increased by Php108 million, or 17%, to Php762 million primarily
due to higher premiums on all risks insurance for properties, and directors&#146;
and officers&#146; liability insurance for 2003 as compared to 2002.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Provision
for inventory obsolescence increased by Php66 million, or 77%, to Php152 million mainly due to
maintenance-related inventory items which were specifically identified as slow
and non-moving stocks in 2003. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Asset
impairment charges amounted to Php13,204 million in 2002, primarily due to
Piltel&#146;s recognition of impairment charges relating to its E.O. 109 assets as
the revenue generated from these services could no longer support the cost of
operating the network.  No impairment charge was recognized in 2003.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Other operating expenses increased by Php399 million,
or 64%, to Php1,020 million mainly due to higher office supplies consumption
and printing costs, partially offset by lower contracted employee cost.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Operating Income</i></b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Operating
income from our fixed line service revenues amounted to Php14,517 million in
2003, an increase of Php12,124 million, or 507%, from Php2,393 million in 2002
primarily due to the substantial decline in fixed line-related operating
expenses.  </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Financing Costs</i></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Financing
costs associated with our fixed line business increased by Php5,098 million, or
33%, to Php20,590 million due to higher foreign exchange losses pertaining to
foreign exchange revaluation of the carrying values of financial liabilities,
as the level of peso depreciation was higher in 2003 compared to 2002,
partially offset by lower interest expenses and related items due to lower debt
balances in 2003 as compared to 2002.  The breakdown of our financing costs for
our fixed line business for the years ended December 31, 2003 and 2002 is as
follows:</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0  style='width:6.25in;margin-left:5.4pt;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  colspan=7 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  colspan=3 valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Change</b></p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2002</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=7 valign=top style=' border:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Interest on loans and related items</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php10,034</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php10,816</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php782)</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(7)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Foreign exchange (gains) losses</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">7,525</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,402</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,123</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">71</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Loss (gain) on derivative
 transactions</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">1,466</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:1.45pt;text-align:right' style="margin-top:0;margin-bottom:0">(487)</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,953</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">401</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Hedge costs</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">1,054</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">315</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">739</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">235</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Accretion of financial
 liabilities</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">280</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">242</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">38</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">16</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Financing charges</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">231</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">204</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">27</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">13</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php20,590</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php15,492</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php5,098</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">33</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0"><b><i>Interest
Income</i></b></p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Interest income generated by our
fixed line business amounted to Php138 million in 2003, an increase of Php59
million, or 75% compared to Php79 million in 2002 mainly attributable to PLDT&#146;s
higher average cash balances coupled with higher interest rates in 2003
compared to 2002.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0"><b><i>Other
Income - net</i></b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">All other income/gains such as
rental income, gain on disposal of property, which do not fall under service
and non-service revenues are included under this classification.  In 2003, our
fixed line business segment registered a decrease in other income of Php1,104
million, or 52%, to Php1,024 million in 2003 from Php2,128 million in 2002
mainly due to the termination of a derivative instrument which resulted to a
net gain of Php633 in 2002.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Income (Loss) Before Income Tax</i></b><b><i>, Cumulative Effect of Change in Accounting Policy and
Minority Interest in Net Loss (Income) of Consolidated Subsidiaries</i></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our
fixed line business segment registered a loss before income tax<b><i>, </i></b>cumulative
effect of change in accounting policy and minority interest in net loss
(income) of consolidated subsidiaries
subsidiaries in 2003 of Php4,911 million, a decrease of Php6,468 million, or
57%, compared to a loss before income tax of Php11,379 million in 2002, mainly
due to a decrease in our fixed line operating expenses, partially offset by the
increase in our fixed line operating revenues as well as the increase in our
fixed line financing costs.</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0"><b><i>Provision
for (Benefit from) Income Tax</i></b></p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style="margin-top:0;margin-bottom:0">Benefit from income tax amounted
to Php3,008 million in 2003 compared to a provision for income tax of Php221
million in 2002 due to a tax loss position in 2003 as non-tax deductible
charges were higher in 2003.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0"><b><i>Net
Loss</i></b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">In 2003, our fixed line business
segment contributed a net loss of Php1,902 million, compared to a net loss of
Php11,602 million in 2002. The decrease in net loss was mainly a result of a
decrease in fixed line-related expenses, particularly asset impairment charges
coupled with a tax benefit from income tax of Php3,008 million in 2003.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Information and Communications Technology</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Operating Revenues </i></b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">In 2003, our information and communications technology
business generated operating revenues of Php1,783 million, an increase of
Php806 million, or 82%, from Php977 million in 2002.  These revenues accounted
for 2% of our consolidated operating revenues in 2003 and 1% in 2002.  ePLDT&#146;s
call center business contributed revenues of Php927 million, Internet and
gaming contributed revenues of Php380 million and <i>Vitro&#153;</i> contributed
revenues of Php120 million representing 63%, 26% and 8%, respectively, of the
total service revenues from our information and communications technology
business in 2003, compared to 39%, 49% and 12%, in 2002.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table summarizes total operating revenues
from our information and communications technology business for the years ended
 December 31, 2003 and 2002 by business segment:</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='margin-left:5.4pt;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  colspan=11 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  colspan=3 valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Increase </b></p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2002</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=9 valign=top style=' border:none;
 border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Service Revenues</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Call center</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php927</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">52</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php305</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">31</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php622</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">204</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Internet and gaming </p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">380</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">21</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">375</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">39</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 </tr>
 <tr style='height:.15in'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p style='text-indent:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Vitro&#153;</i> data
 center</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">120</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">89</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">31</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">35</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">40</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">37</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,233</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,467</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">82</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">772</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">79</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">695</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">90</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Non-service Revenues</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Point of Product Sales</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">316</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">18</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">205</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">21</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">111</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">54</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Total ICT Operating Revenues</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php1,783</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php977</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php806</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">82</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:auto' style="margin-top:0;margin-bottom:0">Service Revenues</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Service
revenues generated by our information and communications technology business
amounted to Php1,467 million in 2003, an increase of Php695 million, or 90%,
from Php772 million in 2002.  This was primarily a result of the continued growth
of our call center businesses.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Call</i><i> </i><i>Center</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">Revenues related to our call center
business in 2003 increased by Php622 million, or 204%, to Php927 million from
Php305 million in 2002 due to the combined effects of Vocativ&#146;s upward price
adjustment for voice and VoIP, and an increase in programs being handled and an
upward price adjustment by Parlance for its inbound and outbound projects,
coupled with an increase in the number of registered minutes.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Call center revenues accounted for 63% and 39% of our
total information and communications technology service revenues in 2003 and
2002, respectively.</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Internet
and gaming</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Revenues from our internet and gaming business for
2003 increased by Php5 million, or 1%, to Php380 million from Php375 million in
2002 primarily due to a gain in the divestment of Contact World, Inc. in 2003.
Our internet and gaming business revenues accounted for 26% and 49% of our
total service revenues from information and communications technology business
in 2003 and 2002, respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Vitro&#153;</i> data center</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
2003, <i>Vitro&#153;</i> contributed revenues of Php120 million, an increase of
Php31 million, or 35%, from Php89 million in 2002, primarily due to an increase
in co-location revenues, server hosting and other services.   <i>Vitro&#153;</i>
revenues accounted for 8% and 12% of total service revenues from information
and communications technology business in 2003 and 2002, respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Revenues from other businesses related to our
information and communications technology segment in 2003 increased by Php37 million
to Php40 million from Php3 million in 2002 largely due to IT helpdesk/contact
center services rendered coupled with an increase in number of digital
certificates sold.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Please
refer to <i>Note 8 &#150; Investments</i> to the accompanying consolidated financial
statements in Item 18 for further discussion on ePLDT&#146;s other information and
communications technology services.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Non-service Revenues</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Non-service revenues consist of sales generated from
reselling Microsoft software licenses and Cisco hardware equipment.  In 2003,
non-service revenues generated by our information and communications technology
business increased by Php111 million, or 54%, to Php316 million prompted by
higher point of product sales of Cisco equipment and Microsoft licenses.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify' style="margin-top:0;margin-bottom:0"><b><i>Operating</i></b><i> <b>Expenses</b></i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Operating
expenses associated with our information and communications technology business
totaled Php2,272 million in 2003, an increase of Php814 million, or 56%, from
Php1,458 million in 2002.  As a percentage of our information and
communications technology total operating revenues, operating expenses related
to our information and communications technology business were at 127% and 149%
for 2003 and 2002, respectively.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
following table shows the breakdown of our consolidated information and communications
technology-related operating expenses for the years ended December 31, 2003 and
2002 and the percentage of each expense item to the total:</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:96.86%;border-collapse:collapse;border-collapse:collapse !msorm'>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=13 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Increase (Decrease)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2002</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:.15in' style='page-break-inside:
 avoid !msorm;height:.15in !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:.15in'>
 <p style='margin-left:4.5pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=11 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:.15in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:.15in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:.15in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Information and communications technology services:</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Compensation and benefits(1)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php533</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">23</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php347</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">24</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">Php186</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">54</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Asset impairment </p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">387</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">17</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:5.75pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:5.75pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">387</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.95pt' style='page-break-inside:
 avoid !msorm;height:4.95pt !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.95pt'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Rent</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.95pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">337</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.95pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">15</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.95pt'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.95pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">266</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.95pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">18</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.95pt'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">71</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.95pt'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:4.95pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">27</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Depreciation and amortization</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">314</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">14</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">354</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">24</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(40)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">(11)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Maintenance</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">184</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">200</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">14</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(16)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(8)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Provision for doubtful accounts</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">70</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">45</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">25</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">56</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Professional and other service fees</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">65</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">89</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(24)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">(27)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Selling and promotions</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">35</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">65</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(30)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">(46)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Taxes and licenses</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">18</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">12</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">200</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Provision for inventory obsolescence</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">12</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">12</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Insurance and securities</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">67</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Other operating  expense</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">307</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">13</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">80</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">227</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">284</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.5pt' style='page-break-inside:
 avoid !msorm;height:3.5pt !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total </p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php2,272</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php1,458</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">Php814</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">56</p>
 </td>
 </tr>
 <tr height=0>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 </tr>
</table></center></div>

<p style='punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other;
border:none' style="margin-top:0;margin-bottom:0">____________</p>

<p style="margin-top:0;margin-bottom:0"><i>(1)  Includes salaries and
benefits, incentive plan, pension and MRP costs.</i></p>

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">Compensation and benefits increased by Php186
million, or 54%, to Php533 million mainly due to the expansion of our call
center facilities which resulted in a 60% increase in headcount coupled with an
increase in salaries, bonuses and various incentives of employees.</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">Asset impairment amounted to Php387 million in 2003
due to the retirement of certain equipment as a result of the abandonment of a
reloadable chip-based cash card project.  There were no asset impairment charges
in 2002.</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">Rent expense increased by Php71 million, or 27%, to
Php337 million due to telecom-related leases incurred by our call center
businesses.  </p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">Depreciation and amortization charges decreased by
Php40 million, or 11%, to Php314 million primarily due to the write-off of an
investee company&#146;s fixed assets amounting to Php203 million in 2003.</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">Maintenance expenses decreased by Php16 million, or
8%, to Php184 million primarily due to the expiration of a warranty on certain
assets of <i>Vitro&#153;</i> which carried maintenance liabilities for clients.</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">Provision for doubtful accounts increased by Php25
million, or 56%, to Php70 million primarily due to specifically identified
uncollectible subscriber accounts of Infocom provided for in 2003.</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">Professional and other service fees decreased by
Php24 million, or 27%, to Php65 million primarily due to lower fees paid by
Contact World for training and consultancy services rendered by Dell
Corporation in relation to Contact World&#146;s expansion prior to Contact World&#146;s
divestment in 2003.</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">Selling and promotion expenses decreased by Php30
million, or 46%, to Php35 million mainly due to the intensified marketing
activities of Infocom, particularly for audio video conferencing, in 2002.</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">Taxes and licenses increased by Php12 million, or
200%, to Php18 million mainly on account of higher business-related taxes paid
in 2003 as compared to 2002.</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">Provision for inventory obsolescence in 2003
amounted to Php12 million on account of a full provision for slow moving inventories
related to an investee company of ePLDT.</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">Insurance and securities increased by Php4 million,
or 67%, to Php10 million primarily due to the additional insurance premiums of
Parlance and Vocativ for additional capital expenditures in 2003.  Security
expenses of Parlance and Vocativ also increased due to their full year
operations in 2003. </p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">Other operating expenses increased by Php227
million, or 284%, to Php307 million mainly due to the increase in various
business-related expenses associated with the continuous expansion, and other
miscellaneous expenses incurred by call center projects started in 2003.</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left' style="margin-top:0;margin-bottom:0"><i>Operating Loss</i></p>

<p align=left style='text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">Our information and communications technology
business segment operating loss amounted to Php489 million in 2003 as compared
to an operating loss of Php481 million in 2002.</p>

<p align=left style='text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left' style="margin-top:0;margin-bottom:0"><i>Financing Costs</i></p>

<p align=left style='text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">Financing costs associated with our information and
communications technology business, consisting primarily of interest on loans
and related items, amounted to Php60 million, an increase of Php44 million, or
275%, from Php16 million in 2002 due to higher interest expense on loans as
debt balances increased in 2003 compared to 2002 coupled with lower interest
income in 2003.</p>

<p align=left style='text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left' style="margin-top:0;margin-bottom:0"><i>Interest Income</i></p>

<p align=left style='text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">Interest income generated by our information and
communications technology business amounted to Php7 million in 2003, a decrease
of Php9 million, or 56%, compared to Php16 million in 2002 mainly attributable
to ePLDT&#146;s lower average cash balances in 2003 compared to 2002.</p>

<p align=left style='text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Other Income - Net</i></b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">All other income/gains which do not fall under
service and non-service revenues are included under this classification.  Other
income generated from our information and communications technology business
segment increased by Php83 million, or 224%, to Php120 million in 2003 from
Php37 million in 2002 due to a gain on the divestment of Contact World, a call
center facility, in 2003.  </p>

<p align=left style='text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0"><b><i>Loss
Before Income Tax</i></b><b><i>,
Cumulative Effect of Change in Accounting Policy and Minority Interest in Net
Income of Consolidated Subsidiaries</i></b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">Our information and communications technology
business registered a loss before income tax<i>, </i>cumulative effect of
change in accounting policy and minority interest in net income of consolidated
subsidiaries in 2003 of Php432 million,
a decrease of Php80 million, or 16%, from a loss before income tax of Php512
million in 2002 as a result of higher revenues from our call center business in
2003.</p>

<p style='punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other;
border:none' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-bottom:0in;margin-bottom:.0001pt;text-align:left;
page-break-after:auto' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><i>Provision for (Benefit
from) Income Tax </i></h6>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">Benefit from income tax amounted to Php64 million in
2003 principally due to Infocom&#146;s recorded deferred income tax asset of Php64
million in 2003; no provision for income tax was recognized in 2002.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-bottom:0in;margin-bottom:.0001pt;text-align:left' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><i>Net Loss </i></h6>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">In 2003, our information and communications technology
business segment registered a net loss of Php328 million, an improvement of
Php159 million, or 33%, compared to a net loss of Php487 million posted in
2002.  This reflected the net increase in asset impairment charges, which was
partially offset by the increase in net income contribution of our call center
business.</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779217"></a><a name="_Toc46082276">Liquidity and Capital Resources</a></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table shows our consolidated cash flows,
capitalization and other selected financial data as at and for the years ended December 31, 2004,
2003 and 2002:</p>

<p style='text-indent:.5in;line-height:50%;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:92.46%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=6 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p style='border:none;padding:0in' style="margin-top:0;margin-bottom:0">Years Ended December 31,</p>
 </div>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </div>
 </td>
 <td   colspan=3 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2002</b></p>
 </div>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=6 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 4.5pt 0in 4.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cash Flows</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=4 valign=top style=' background:#D9D9D9;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 4.5pt 0in 4.5pt'>
 <p style='margin-left:9.0pt;text-indent:-4.5pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net cash provided by
 operating activities</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php62,860</p>
 </td>
 <td   colspan=4 valign=top style=' background:#F3F3F3;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php42,582</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php39,722</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 4.5pt 0in 4.5pt'>
 <p style='margin-left:9.0pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Net cash used in investing activities</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">24,764</p>
 </td>
 <td   colspan=4 valign=top style=' background:#D9D9D9;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">20,021</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">17,167</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 4.5pt 0in 4.5pt'>
 <p style='margin-left:9.0pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Capital expenditures</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">19,268</p>
 </td>
 <td   colspan=4 valign=bottom style=' background:#F3F3F3;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">17,943</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">17,239</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 4.5pt 0in 4.5pt'>
 <p style='margin-left:9.0pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Net cash used in financing activities</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">30,078</p>
 </td>
 <td   colspan=4 valign=top style=' background:#D9D9D9;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14,135</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">15,954</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 4.5pt 0in 4.5pt'>
 <p style='margin-left:9.0pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Effect of exchange rate changes on cash
 and cash equivalents</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(69)</p>
 </td>
 <td   colspan=4 valign=top style=' background:#F3F3F3;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:5.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(28)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">97</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 4.5pt 0in 4.5pt'>
 <p style='margin-left:9.0pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Net increase in cash and cash
 equivalents</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:7.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,949</p>
 </td>
 <td   colspan=4 valign=top style=' background:#D9D9D9;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,398</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,698</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=4 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=6 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p style='border:none;padding:0in' style="margin-top:0;margin-bottom:0">December 31,</p>
 </div>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </div>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=6 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 4.5pt 0in 4.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Capitalization</p>
 </td>
 <td   colspan=3 valign=top style=' background:#F3F3F3;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:.1in'>
 <td   style=' background:#D9D9D9;padding:0in 4.5pt 0in 4.5pt;
 height:.1in'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cash and cash equivalents</p>
 </td>
 <td   colspan=3 valign=top style=' background:#D9D9D9;
 padding:0in 4.5pt 0in 4.5pt;height:.1in'>
 <div style='border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:2.9pt'>
 <p align=right style='text-align:right;page-break-after:avoid;
 border:none;padding:0in' style="margin-top:0;margin-bottom:0">Php27,321</p>
 </div>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 4.5pt 0in 4.5pt;
 height:.1in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 4.5pt 0in 4.5pt;height:.1in'>
 <div style='border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:2.9pt'>
 <p align=right style='text-align:right;page-break-after:avoid;
 border:none;padding:0in' style="margin-top:0;margin-bottom:0">Php19,372</p>
 </div>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 4.5pt 0in 4.5pt'>
 <p style='margin-left:9.0pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Short-term debt</p>
 </td>
 <td   colspan=3 valign=top style=' background:#F3F3F3;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 4.5pt 0in 4.5pt'>
 <p style='margin-left:9.0pt;text-indent:4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Current portion of long-term debt</p>
 </td>
 <td   colspan=3 valign=top style=' background:#D9D9D9;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">28,020</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">23,810</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 4.5pt 0in 4.5pt'>
 <p style='margin-left:9.0pt;text-indent:4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Notes payable</p>
 </td>
 <td   colspan=3 valign=top style=' background:#F3F3F3;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">58</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,133</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 4.5pt 0in 4.5pt'>
 <p style='margin-left:9.0pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Long-term debt &#150; net of current portion</p>
 </td>
 <td   colspan=3 valign=top style=' background:#D9D9D9;
 padding:0in 4.5pt 0in 4.5pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:2.9pt'>
 <p align=right style='text-align:right;page-break-after:avoid;
 border:none;padding:0in' style="margin-top:0;margin-bottom:0">131,377</p>
 </div>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 4.5pt 0in 4.5pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:2.9pt'>
 <p align=right style='text-align:right;page-break-after:avoid;
 border:none;padding:0in' style="margin-top:0;margin-bottom:0">160,464</p>
 </div>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 4.5pt 0in 4.5pt;height:9.0pt'>
 <p style='margin-left:9.0pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Total debt</p>
 </td>
 <td   colspan=3 valign=top style=' background:#F3F3F3;
 padding:0in 4.5pt 0in 4.5pt;height:9.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">159,455</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 4.5pt 0in 4.5pt;
 height:9.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 4.5pt 0in 4.5pt;height:9.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">186,407</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 4.5pt 0in 4.5pt'>
 <p style='margin-left:9.0pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Stockholders&#146; equity</p>
 </td>
 <td   colspan=3 valign=top style=' background:#D9D9D9;
 padding:0in 4.5pt 0in 4.5pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:2.9pt'>
 <p align=right style='text-align:right;page-break-after:avoid;
 border:none;padding:0in' style="margin-top:0;margin-bottom:0">48,079</p>
 </div>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 4.5pt 0in 4.5pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:2.9pt'>
 <p align=right style='text-align:right;page-break-after:avoid;
 border:none;padding:0in' style="margin-top:0;margin-bottom:0">24,745</p>
 </div>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 4.5pt 0in 4.5pt'>
 <p style="margin-top:0;margin-bottom:0">Total capitalization</p>
 </td>
 <td   colspan=3 valign=top style=' background:#F3F3F3;
 padding:0in 4.5pt 0in 4.5pt'>
 <div style='border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:2.9pt'>
 <p align=right style='text-align:right;page-break-after:avoid;
 border:none;padding:0in' style="margin-top:0;margin-bottom:0">Php207,534</p>
 </div>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 4.5pt 0in 4.5pt'>
 <div style='border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:2.9pt'>
 <p align=right style='text-align:right;page-break-after:avoid;
 border:none;padding:0in' style="margin-top:0;margin-bottom:0">Php211,152</p>
 </div>
 </td>
 </tr>
 <tr height=0>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Since
2002, PLDT has pursued a number of liability management initiatives with the
objectives of further improving the balance between its cash flows and debt
service requirements and reducing its overall indebtedness.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Through
these initiatives, PLDT was able to successfully raise the necessary external
financing to fund its operating, investing and debt service requirements. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As
at December 31, 2004, consolidated cash and cash equivalents amounted to
Php27,321 million.  Our principal sources of consolidated cash in 2004 were
cash flows from operations amounting to Php62,860 million, drawings from
existing long-term credit facilities totaling Php15,187 million, and net equity
funds raised through PLDT's SIP amounting to Php281 million.  These funds were
used principally for capital outlays of Php19,268 million, (including
capitalized interest of Php595 million) and debt principal repayments of
Php41,697 million.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Principal sources of consolidated
cash in 2003 and 2002 were cash flows from operations amounting to Php42,582
million and Php39,722 million, respectively; drawings from long-term and
short-term credit facilities amounting to Php17,507 million and Php3,135
million, respectively, in 2003, and Php36,011 million and Php7,872 million,
respectively in 2002; and equity funds raised through the issuance of capital
stock amounting to Php94 million in 2003.  These funds were used principally
for capital outlays of Php17,943 million (including capitalized interest of
Php887 million) and payments of long-term debt amounting to Php31,548 million
in 2003; and capital outlays of Php17,239 million, (including capitalized
interest of Php1,343 million) and payments of long-term and short-term debt
totaling to Php57,470 million and equity funds raised through the issuance of
capital stock amounting to Php464 million in 2002.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Operating Activities</i></b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">On
a consolidated basis, net cash flows from operating activities in 2004 amounted
to Php62,860 million, an increase of Php20,278 million, or 48%, from Php42,582
million in 2003 and an increase of Php2,860 million, or 7% from Php39,722
million in 2002.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">A
growing portion of our consolidated cash flow is generated by our wireless and
data businesses.  The revenue contribution of these businesses has grown over
the last three years with wireless business contributing 58%, in 2004, 53% in
2003 and 43% in 2002, and data business contributing an average of 6% in 2004
and 2003 and 7% in 2002 of our total service revenues.  Revenues from our local
exchange service accounted for approximately 17% of our total service revenues
in 2004, down from 20% in 2003 and from 26% in 2002.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
dependence on international and national long distance services has decreased
over the past several years.  In 2004, 2003 and 2002, these services together
accounted for 16%, 19% and 22%, respectively, of our total service revenues.
Revenues from our long distance businesses increased by 1% in 2004 compared to
2003 and decreased by 5% in 2003 compared to 2002 due to cellular substitution
and declining prices.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">PLDT's
contribution to our consolidated cash flows from operations in 2004 was
Php25,298 million, a decrease of Php14,103 million, or 126%, from Php11,195
million in 2003, which in turn represents a decrease of Php5,992 million, or
35%, from Php17,187 million in 2002.  The decrease in 2004 was due to an
increase in PLDT&#146;s working capital management, including the decline in level
of settlements of certain liabilities outstanding during 2004, compared to
2003.  The decrease in 2003, on the other hand, was attributable to the decline
in the level of settlements in 2003 of certain payables outstanding, compared
to 2002.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Our subsidiaries,
particularly Smart, made significant contributions to our cash from
operations.  In 2004, Smart generated cash from operations of Php40,297
million, or 64%, of our consolidated cash flows from operations.  In 2003,
Smart generated cash from operations of Php30,644 million, or 72%, of our
consolidated cash flow from operations.  Smart&#146;s strong cash flows reflect the
continuing strong performance of its cellular business.  However, Smart is
subject to loan covenants that restrict its ability to pay dividends, redeem
preferred shares, make distributions to PLDT or otherwise provide funds to PLDT
or any associate without the consent of its lenders.  After receiving approvals from Finnvera and certain
lenders for the payment of dividends to PLDT, Smart made its first dividend
payment of Php1,540 million to PLDT in December 2002.  In addition, Smart paid dividends in the amount of Php4,300 million to PLDT in June 2003, representing 70% of
Smart&#146;s 2002 net income under Philippine GAAP and paid additional dividends in
the amount of Php1,866 million to PLDT in
November 2003, equivalent to the remaining 30% of its 2002 net income under
Philippine GAAP.  Further, in 2004, after receiving similar approvals from Finnvera
and certain lenders, Smart paid an aggregate of Php16,100 million in dividends
to PLDT, of which Php11,280 million was paid in May 2004, representing 70% of
Smart&#146;s 2003 net income under Philippine GAAP and the balance of Php4,820
million was paid in December 2004.  Smart will also
be required to obtain further waivers from Finnvera and certain lenders to pay
additional dividends in future periods.  We cannot assure that Smart will be
able to obtain such waivers in the future, or what amount, if any, Smart would
be permitted or financially able to distribute.  We expect that we will have
difficulty meeting our debt payment obligations if we do not continue to
receive cash dividends from Smart.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>Investing Activities</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On a
consolidated basis, net cash used in investing activities increased by Php4,743
million, or 24%, to Php24,764 million in 2004 from Php20,021 million in 2003,
and by Php2,854 million, or 17%, to Php20,021 million in 2003 from Php17,167
million in 2002, mainly as a result of higher aggregate capital spending.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Our consolidated capital
expenditures in 2004 totaled Php19,268 million, an increase of Php1,325
million, or 7%, from Php17,943 million in 2003 primarily due to Smart&#146;s
increased capital spending partially offset by PLDT&#146;s lower capital spending.
Smart's capital spending of Php14,721 million in 2004 was used to further
expand and upgrade its GSM network to meet the increasing demand for cellular
services.  PLDT's capital outlay of Php3,917 million in 2004 was principally
used to finance the continued build-out of its data and broadband/IP
infrastructure and its investment in Asia Pacific Cable Network 2.  ePLDT and
its subsidiaries&#146; capital spending of Php500 million in 2004 was used to fund
its internet data center, other internet-related business initiatives and call
center business investments.  The remaining balances were spent by other
subsidiaries mainly PLDT Global, Mabuhay Satellite and Subic Telecom.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;line-height:normal;punctuation-wrap:
hanging' style="margin-top:0;margin-bottom:0">Under the terms of Piltel&#146;s debt
restructuring plan, PLDT issued a LOS for the benefit of Piltel and its
creditors under which PLDT has agreed to cover any funding shortfalls of Piltel
up to a maximum amount of US$150 million.  Under the LOS, PLDT provided to
Piltel Php571 million (US$11 million) in 2002.  There was no drawdown under the
LOS in 2004 and 2003.  Drawings under the PLDT LOS are converted into U.S.
dollars at the prevailing exchange rates at the time of drawdown.  As at
December 31, 2004 and 2003, the remaining undrawn balance available under the
PLDT LOS was US$50 million, approximately Php2,831 (2004) million and Php2,793
million (2003) due to prior investments made from March 23, 2000 to December
31, 2004 aggregating to US$100 million through PLDT&#146;s subscription to Series J
Class I preferred shares of Piltel.  There was no drawdown under the LOS in
2004 and 2003.  If, among other things, Piltel's financial and operating
performance were to deteriorate or any amounts were required to be paid to
Piltel's unrestructured creditors in cash to settle their claims (which
comprised an aggregate principal of US$1.0 million as at December 31, 2004),
additional drawings under the LOS would likely be required to provide all or a
portion of the funds needed by Piltel.  We cannot assure that additional
amounts will not have to be drawn under the LOS nor can we predict when the
remaining undrawn balance under the LOS will be exhausted.  Piltel is currently
in discussion with its unrestructured creditors and is seeking to restructure
such debt on the terms and conditions of Piltel&#146;s debt restructuring plan.
However, Piltel may not be able to restructure or otherwise pay the claims
relating to its unrestructured debt.  See <i>&#147;Item 3. Key Information &#151; Risk
Factors &#151; Risks Relating to Us &#151; Piltel has experienced financial difficulties
and we cannot assure you that it will be able to discharge any of its debt or
other obligations, including its debts or other obligations owed to us and our
affiliates </i>and<i> Note 12 &#150; Interest-bearing Liabilities&#148;</i> to the
accompanying consolidated financial statements in Item 18. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">For 2005, we anticipate reducing
the level of our capital expenditures and equity investments.  Our 2005 budget
for consolidated capital expenditures is approximately Php17,758 million, of
which approximately Php7,850 million is budgeted to be spent by PLDT for its
fixed line data and network services and approximately Php8,778 million is
budgeted to be spent by Smart for further expansion and upgrading of its
digital network.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Our consolidated capital
expenditures in 2003 totaled Php17,943 million mainly from PLDT's and Smart's
capital spending of Php6,099 million and Php11,305 million, respectively.  Our
consolidated capital expenditures of Php17,239 million (including capitalized
interest of Php1,343 million) in 2002 was largely attributable to PLDT and
Smart.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Financing Activities</i></b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">On a consolidated basis, we used
net cash of Php30,078 million for financing activities in 2004, compared to
Php14,135 million in 2003 and Php15,954 million in 2002.  The net cash used in
financing activities in 2004, 2003 and 2002 were mainly attributable to
interest payments and debt repayments by PLDT in line with its ongoing debt
reduction program.  </p>

<p style='text-indent:.25in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Debt Financing</i></p>

<p style='text-indent:.5in;line-height:50%;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Additions to our consolidated long-term debt in 2004
totaled Php15,187 million, consisting of (1) drawings totaling Php6,964
million, primarily from PLDT&#146;s loan facilities extended and/or guaranteed by
various export credit agencies; and (2) Smart&#146;s drawings of Php8,173 million,
principally from its Phase 5 GSM loan facilities.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Our
consolidated indebtedness as at December 31, 2004 was Php159,455 million, lower
by Php26,952 million, or 14%, compared to Php186,407 million as at December 31,
2003 mainly due to the reductions of Php26,398 million in PLDT&#146;s indebtedness
partially offset by an increase in Smart&#146;s indebtedness of Php23,509 million.
PLDT&#146;s non-consolidated indebtedness decreased by 19%, from Php137,336 million
as at December 31, 2003 to Php110,938 million as at December 31, 2004, due to debt payments in line with our thrust to reduce PLDT&#146;s overall
indebtedness.  Smart&#146;s indebtedness as at December 31, 2004 stood at Php44,095 million, an increase of 114% from Php20,586 million as at December 31, 2003.  On July 2, 2004, Smart acquired from Piltel&#146;s creditors US$289
million, or 69.4%, in the aggregate of Piltel&#146;s total outstanding restructured
debt at that time, in exchange for US$283.2 million, or Php15,854 million in
July 2, 2004, in new debt of Smart and US$1.5 million, or Php84 million, in
cash.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As
at December 31, 2004, PLDT had no undrawn committed long-term credit
facilities.  The JP&yen;3,095 million undrawn portion of the JP&yen;5,615 million
syndicated term loan facility supported by Nippon Export and Investment
Insurance of Japan and US$4 million undrawn portion of the US$12 million term
loan facility extended by DEG-Deutsche Investitions-und
Entwicklungsgesellschaft mbH were cancelled on December 3, 2004 and September
26, 2004, respectively.  In addition, PLDT also waived further disbursements
from the US$149 million Kreditanstalt fur Wiederaufbau refinancing facility
effective September 1, 2004, thus, cancelling the undrawn portion of US$9
million.  As at December 31, 2004, Smart still had available facilities under its &#128;50 million
Framework Agreement with Bayerische Hypo-und Vereinsbank Aktiengesellschaft up
to a maximum aggregate amount of &#128;44 million.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The
scheduled maturities of our outstanding consolidated long-term debt as at December 31, 2004 are
as follows:</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:88.66%;margin-left:5.4pt;border-collapse:collapse'>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b><u>Consolidated</u></b></p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>Maturity</u></b></p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>(in millions)</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2005</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:15.85pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php28,020</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:15.85pt;text-align:right' style="margin-top:0;margin-bottom:0">25,867</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">2007</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:15.85pt;text-align:right' style="margin-top:0;margin-bottom:0">29,396</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">2008</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:15.85pt;text-align:right' style="margin-top:0;margin-bottom:0">6,589</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">2009</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:15.85pt;text-align:right' style="margin-top:0;margin-bottom:0">14,174</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">2010 and onwards</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:15.85pt;text-align:right' style="margin-top:0;margin-bottom:0">55,351</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0"> </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Approximately
Php104,046 million principal amount of our consolidated outstanding long-term
debt as at December 31, 2004 is scheduled to mature over the period 2005 to
2009.  Of this amount, approximately Php77,385 million is attributable to PLDT,
Php22,294 million to Smart, and the remainder to Mabuhay Satellite, Maratel,
ePLDT and Piltel.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">See <i>Note 12 &#150; Interest-bearing
Financial Liabilities</i> to the accompanying consolidated financial statements
in Item 18 for an overview of our indebtedness. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='line-height:normal' style="margin-top:0;margin-bottom:0">Debt
Covenants</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Our debt instruments contain
restrictive covenants, including covenants that could prohibit us from paying
dividends on common stock under certain circumstances, and require us to comply
with specified financial ratios and other financial tests, calculated in
conformity with accounting principles generally accepted in the Philippines,
at relevant measurement dates, principally at the end of each quarterly
period.  We have complied with all of our maintenance financial ratios as
required under our loan covenants and other debt instruments.  However, if
negative factors adversely affect our financial ratios, we may be unable to
maintain compliance with these ratios and covenants or be unable to incur new
debt.  Under some of our loan agreements, certain of our financial ratios have
become more restrictive in 2004 and will continue to become more restrictive in
increments thereafter, which will make it more difficult for PLDT to maintain
compliance with such ratios in the future.  Inability to comply with our
financial ratios and covenants or raise new financing could result in a
declaration of default and acceleration of some or all of our indebtedness.
The terms of some of our debt instruments have no minimum amount for
cross-default.  In addition, we are required to comply with certain financial
ratios for the incurrence of capital expenditures in excess of US$10 million
and incurrence of indebtedness.   </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
particular, under loan agreements with JBIC, we are required to obtain prior
written consent of JBIC for capital expenditures in excess of US$10 million,
unless, among other things, our current ratio, calculated on a non-consolidated
basis and after taking into account such expenditures, will not be less than
1.20:1.  As at March 31, 2005, our current ratio was 1.29:1, primarily due to the
large current portion of our long-term debt as at that date.  We currently
believe that our current ratio is unlikely to be less than 1.20:1 due to
smaller current portion of our long-term debt going forward.  As a result, we
believe that our financial ratios currently do not materially limit our ability
to incur our budgeted capital expenditures or to obtain additional financings.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
principal factors that can negatively affect our ability to comply with these
financial ratios and other financial tests are depreciation of the Philippine
peso relative to the U.S. dollar, poor operating performance of PLDT and its
consolidated subsidiaries, impairment or similar charges in respect of
investments or other long-lived assets that may be recognized by PLDT and its
consolidated subsidiaries and increases in our interest expenses.  Interest expense
may increase as a result of various factors including issuance of new debt, the
refinancing of lower cost indebtedness by higher cost indebtedness,
depreciation of the Philippine peso, the lowering of PLDT&#146;s credit ratings or
the credit ratings of the Philippines, increase in reference interest rates,
and general market conditions.  Since approximately 98% of our total
consolidated debts were denominated in foreign currencies, principally in U.S.
dollars, many of these financial ratios and other tests are negatively affected
by any weakening of the peso, which declined by approximately 3% against the
U.S. dollar to an average of Php56.044 to US$1.00 in 2004 from an average of
Php54.215 to US$1.00 in 2003.  The peso depreciated from Php26.376 to US$1.00 on
 June 30, 1997, to Php56.341 to US$1.00 as at December 31, 2004.  Moreover, the peso has been subjected to significant fluctuations.  For example, during
2004 and 2003, the peso recovered to a high of Php52.021 to US$1.00 on May 8, 2003 and depreciated to a low of Php56.443 to US$1.00 on October 14, 2004.  </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">PLDT&#146;s
ability to maintain compliance with financial covenant requirements measured on
a non-consolidated basis is principally affected by the performance of its
fixed line business, which is predominantly conducted by PLDT.  PLDT cannot be
assured of the benefit of net revenues and cash flows generated by Smart and
PLDT&#146;s other investees in assisting in complying with non-consolidated
covenants or covenants that are calculated without giving effect to the results
of PLDT&#146;s investees.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">PLDT&#146;s
debt instruments contain a number of other negative covenants that, subject to
certain exceptions and qualifications, restrict PLDT&#146;s ability to take certain
actions without lenders&#146; approval, including: (a) incurring additional
indebtedness; (b) prepaying other debt; (c) making investments; (d) extending
loans; (e) extending guarantees or assuming the obligations of other persons;
(f) paying dividends or other distributions or redeeming, repurchasing or
otherwise acquiring shares of PLDT&#146;s capital stock; (g) disposing of all or
substantially all of its assets or of assets in excess of specified thresholds
of its tangible net worth; (h) entering into management contracts providing for
the management of its business or operations by a third party; (i) creating any
lien or security interest; (j) permitting set-off against amounts owed to PLDT;
(k) merging or consolidating with any other company; (l) entering into
transactions with stockholders and affiliates; and (m) entering into sale and
leaseback transactions. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Further,
certain of PLDT&#146;s debt instruments contain provisions wherein PLDT may be
required to repurchase or prepay certain indebtedness in case of change in
control of PLDT or if the ownership of our shares of common stock held by NTT
Communications falls below a certain threshold.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Moreover,
certain of PLDT&#146;s debt instruments restrict PLDT from declaring or distributing
dividends to common stockholders.  In particular, under the terms of PLDT&#146;s JPY5,615 million syndicated term loan facility,
PLDT is restricted from distributing dividends to common stockholders unless
(i) no default has occurred which is continuing, and (ii) its debt to free cash
flow ratio, after giving effect to the distribution of such dividends and,
under certain circumstances, other adjustments to PLDT&#146;s closing cash balance,
would be less than 4.0:1.  Under other loan agreements, PLDT may not declare or
pay dividends on any of its capital stock without the prior written consent of
the lenders (i) if PLDT is in default in the payment of any amounts due and
payable under such loan agreement or after the occurrence and during the
continuance of any other event of default or potential event of default under
such agreements, (ii) if after giving effect to such action the current ratio
would be less than 1.2:1 or (iii) in an amount greater than PLDT&#146;s net income
after taxes during the fiscal year to which such payment or distribution
relates.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
case of a change in control of PLDT, PLDT may be required to repurchase or
prepay certain indebtedness.  Under the terms of the 10.625% Notes due 2007 and
11.375% Notes due 2012, we are required to offer to purchase all outstanding
notes due 2007 and notes due 2012 for cash at a price of 101% of their principal
amounts plus accrued interest in the event that (1) the aggregate of NTT
Communications&#146; and First Pacific&#146;s direct and indirect voting interest in
PLDT's outstanding capital stock having voting rights falls below 35% of such
capital stock, (2) any person or, in certain instances, group of persons, which
is not controlled directly or indirectly by First Pacific or NTT Communications
acquires a direct or indirect voting interest in PLDT&#146;s outstanding capital
stock having voting rights which equals or exceeds 35% of such capital stock
and (3) if a rating agency at such time maintains a rating on either series of
notes, the rating agency downgrades its credit rating on the series within 90
days (or more, in certain circumstances) following notice of the occurrence of
the events specified in (1) and (2) above.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Under
the terms of our JP&yen;9,760 million loan from JBIC, in the event of any proposed
sale or transfer of PLDT&#146;s stock that would result in NTT Communications
holding less than 14.95% of PLDT&#146;s voting stock, we will be required to prepay,
immediately upon effectiveness of such sale or transfer, all principal
outstanding under the loan, together with accrued interest.  However,
prepayment will not be required if, following such sale or transfer, (1) NTT Communications
continues to have prior approval rights with respect to all matters as to which
NTT Communications has approval rights under the stock purchase agreement
pursuant to which it acquired its shares in PLDT, or (2) JBIC, in its sole
discretion, determines that NTT Communications&#146; participation in the expansion
of Smart&#146;s GSM network capacity to extend PLDT&#146;s cellular business in Smart
would not be reduced below its level of participation as at the date of the
loan agreement.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Under
the terms of PLDT&#146;s JP&yen;5,615 million syndicated term loan facility, if any
lender so requests in writing, PLDT shall prepay in full such lender&#146;s
participation in the loan within 45 days from notification of the change in
control and no later than the date on which PLDT is required to repurchase its
10.625% Notes due 2007 and 11.375% Notes due 2012, or Bonds, from bondholders
accepting the change in control offer.  A change in control is deemed to occur
when (1) the aggregate of NTT Communications&#146; and First Pacific&#146;s direct and
indirect voting interest in PLDT&#146;s outstanding capital stock having voting
rights falls below 35% of such capital stock, (2) any person or, in certain
instances, group of persons, which is not controlled directly or indirectly by
First Pacific or NTT Communications acquires a direct or indirect voting
interest in PLDT&#146;s outstanding capital stock having voting rights which equals
or exceeds 35% of such capital stock and (3) if a rating agency at such time
maintains a rating on the Bonds, the rating agency downgrades its credit rating
on the Bonds within 90 days (or more, in certain circumstances) following
notice of the occurrence of the events specified in (1) and (2) above.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">PLDT&#146;s debt instruments also contain customary and
other default provisions that permit the lender to accelerate amounts due or
terminate their commitments to extend additional funds under the debt
instruments. These default provisions include: (a) cross-defaults and
cross-accelerations that permit a lender to declare a default if PLDT is in
default under another debt instrument; in some cases, the cross-default
provision is triggered upon a payment or other default permitting the
acceleration of PLDT&#146;s debt, whether or not the defaulted debt is accelerated.
In other cases, the cross-default provision requires the defaulted loan to be
accelerated.  In some debt instruments, the cross-default provision will be
triggered only if the principal amount of the defaulted indebtedness exceeds a
threshold amount specified in these debt instruments; (b) failure by PLDT to
meet certain financial ratio covenants referred to above; (c) the occurrence of
any material adverse change in circumstances that a lender reasonably believes
materially impairs PLDT&#146;s ability to perform its obligations under its debt
instrument with the lender; (d) the revocation, termination or amendment of any
of the permits or franchises of PLDT in any manner unacceptable to the lender;
(e) the abandonment, termination or amendment of the project financed by a loan
in a manner unacceptable to the lender; (f) the nationalization or sustained
discontinuance of all or a substantial portion of PLDT&#146;s business; and (g)
other typical events of default, including the commencement of bankruptcy,
insolvency, liquidation or winding up proceedings by PLDT.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Smart&#146;s debt instruments contain
certain restrictive covenants, including covenants that prohibit Smart from
paying dividends, redeeming preferred stock, making distributions to PLDT or
otherwise providing funds to PLDT or any affiliate without the consent of its
lenders under its Phase 1, 2 and 3 facilities.  Also, Smart&#146;s debt instruments
contain certain restrictive covenants that require Smart to comply with
specified financial ratios and other financial tests at semi-annual measurement
dates.  The financial tests under Smart&#146;s loan agreements include compliance
with a debt to equity ratio of not more than 1.50:1 and a debt service coverage
ratio of not less than 1.50:1.  Smart has maintained compliance with all of its
financial covenants.  The agreements also contain customary and other default
provisions that permit the lender to accelerate amounts due under the loans or
terminate their commitments to extend additional funds under the loans.  These
default provisions include: (a) cross-defaults and cross-accelerations that
permit a lender to declare a default if Smart is in default under another loan
agreement.  These cross-default provisions are triggered upon a payment or
other default permitting the acceleration of Smart debt, whether or not the
defaulted debt is accelerated; (b) failure by Smart to comply with certain
financial ratio covenants; (c) any reduction in PLDT&#146;s ownership of Smart&#146;s
shares below 51%; (d) any reduction in First Pacific&#146;s and Metro Pacific
Corporation&#146;s collective direct and/or indirect ownership of PLDT&#146;s common
stock below 17.5% of the total common stock outstanding; and (e) the occurrence
of any material adverse change in circumstances that the lender reasonably
believes materially impairs Smart&#146;s ability to perform its obligations under
its loan agreements.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As
at December 31, 2004, Piltel was not in compliance with the terms of
convertible bonds with principal amount of US$0.7 million (approximately US$0.9
million redemption price at the option of the holders).  Piltel may not be able
to restructure or otherwise pay the claims of its unrestructured debt.
However, default on and acceleration of Piltel&#146;s unrestructured indebtedness
does not create a cross-default under Piltel&#146;s restructured indebtedness or any
indebtedness of PLDT or Smart.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
Credit and Omnibus Agreements of Mabuhay Satellite imposes several negative
covenants.  In particular, these covenants, among others, restrict material
changes in Mabuhay Satellite&#146;s nature of business and ownership structure, any
lien upon or with respect to any of its assets or to any right to receive
income, acquisition of capital stock, declaration and payment of dividends,
merger, consolidation and sale with another entity and incurring or
guaranteeing additional long-term debt beyond prescribed amounts.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">ePLDT&#146;s
loan agreement imposes negative covenants which, among other things, restrict
ePLDT in regard to payment of cash dividends or any other income or any capital
distribution to PLDT, voluntary suspension of its entire business operations
for a period of 60 consecutive days, dissolution of its legal existence, and
creation of any encumbrances on the shares pledged.  One of ePLDT&#146;s loan
agreements also requires ePLDT to comply with specified financial ratios and
other financial tests at quarterly measurement dates.  The agreement also
contains customary and other default provisions that permit the lender to
accelerate amounts due under the loan or terminate their commitments to extend
additional funds under the loan.  As at December 31, 2004,
ePLDT has complied with all of its financial covenants.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Financing Requirements</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">We believe that our available cash, including cash
flow from operations and drawings from existing credit facilities, will provide
sufficient liquidity to fund our projected operating, investment, capital
expenditures and debt service requirements for the next 12 months.  Further, as
described above, we have completed a number of initiatives under our liability
management program to meet our debt service requirements in the short and
medium term.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
continue to pursue various initiatives and financing transactions with the
objective of further improving the balance between our cash flows and debt
service requirements and reducing our overall indebtedness.  In addition, PLDT
has reduced its capital expenditures and investments, suspended dividend
payments to common shareholders and increased its application of available cash
to reduce its indebtedness.  Further, we expect to benefit from increasing
revenue and cash flow contributions from our subsidiaries, particularly Smart.
After receiving approvals from Finnvera and certain lenders for the payment of
dividends to PLDT in an amount not to exceed 40% of Smart&#146;s net income under
Philippine GAAP in 2001, Smart made its first dividend payment of Php1,540
million to PLDT in December 2002.  In addition, Smart
paid dividends in the amount of Php4,300
million to PLDT in June 2003, representing 70% of Smart&#146;s 2002 net income under
Philippine GAAP, and paid additional dividends in the amount of Php1,866 million to PLDT in November 2003, equivalent to the
remaining 30% of its 2002 net income under Philippine GAAP.  Further, in 2004,
after receiving similar approvals from Finnvera and certain lenders, Smart
paid an aggregate of Php16,100 million in dividends to PLDT, of which Php11,280
million was paid in May 2004 and the balance of Php4,820 million was paid in
December 2004.  Smart will be required to obtain
further waivers from Finnvera and certain lenders to pay additional dividends
in future periods.  We cannot assure that Smart will be able to obtain such
waivers in the future, or what amount, if any, Smart would be permitted or
financially able to distribute.  We expect that we will have difficulty meeting
our debt payment obligations if we do not continue to receive cash dividends
from Smart.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Credit Ratings</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">None of our existing indebtedness contains
provisions under which credit rating downgrades would trigger a default,
changes in applicable interest rates or other similar terms and conditions.  </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">On
 May 30, 2005, Fitch Ratings revised the outlook on PLDT&#146;s long-term foreign
currency rating to a stable from negative outlook.  Simultaneously, Fitch has
affirmed PLDT&#146;s long-term foreign currency rating, global bonds and senior
notes at &#147;BB&#148; and PLDT&#146;s convertible preferred stock at &#147;B+&#148;.  The outlook on
PLDT&#146;s long-term local currency rating has also been affirmed as &#147;BB+&#148; and the
stable outlook on this rating remains in place.  The rating actions reflect
Fitch&#146;s decision to revise its outlook on the Republic of the Philippines&#146; &#147;BB&#148;
long-term foreign currency rating to stable from negative.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On February 16, 2005,
Moody&#146;s Investor Service, or Moody&#146;s, downgraded the foreign currency senior
unsecured debt rating of PLDT to Ba3 from Ba2 with a stable outlook.  The
rating action was taken as part of Moody&#146;s downgrade of the Republic of the Philippines&#146;
foreign currency country ceiling to B1 from Ba2.  On the same date, Moody&#146;s
affirmed PLDT&#146;s B1 preferred stock rating with a stable outlook.  Moody's views
that there is a differential between PLDT's foreign currency rating and the
Philippine sovereign rating because
foreign currency bonds subject to international law are less likely to be
subject to a debt moratorium than foreign currency obligations subject to local
law.  According to Moody&#146;s, PLDT&#146;s foreign currency  debt rating is a function
of its own risk of default and the probability of a Philippine government
default on its foreign debt, the likelihood that the Philippine government
would declare a moratorium in the event of a default, and if it did, the
chances that it would exempt companies such as PLDT.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On
January 17, 2005, Standard and Poor&#146;s Ratings Group, or Standard and Poor&#146;s,
revised its long-term foreign currency rating on PLDT from &#147;BB&#148; to &#147;BB-&#148; (BB
minus) with a stable outlook.  The rating action was taken immediately after
Standard and Poor&#146;s downgraded the foreign currency rating on the Republic of
the Philippines to &#147;BB-&#148; (BB minus).</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">A credit rating is not a
recommendation to purchase, hold or sell securities as much as such rating does
not comment as to market price or suitability for a particular investor.  In
addition, a credit rating is subject to revision or withdrawal at any time by
the credit rating assigning organization.  There is no assurance that the
credit ratings will remain in effect for any given period or that the ratings
will not be revised, downwards or upwards, by the rating agency in the future.</p>

<p align=center style='text-align:center;text-indent:.25in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.25in' style="margin-top:0;margin-bottom:0"><i>Off-Balance
Sheet Arrangements</i></p>

<p style='line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">On
 October 10, 2002, PLDT entered into a Receivables Purchase Deed, or RPD, with
a foreign financial institution, or the Purchaser, under which PLDT agreed (1)
to sell its receivables from certain eligible foreign carriers for an advance
payment of US$50 million and (2) to service, administer and collect the
receivables on behalf of the Purchaser.  The Purchaser will have no recourse to
PLDT should the eligible carrier fail or refuse to settle the
assigned/purchased receivables, except when PLDT commits a breach on its
representations and warranties under the RPD.  For the years ended December 31,
2004, 2003 and 2002, receivables sold under the RPD amounted to US$10 million
(Php576 million), with resulting losses of US$1 million (Php78 million), US$11
million (Php616 million), with resulting losses of US$1.5 million (Php84
million), and US$3 million (Php165 million), with resulting losses of US$0.5
million (Php25 million), respectively.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Equity Financing</i></p>

<p style='text-indent:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Through our SIP, which provides postpaid fixed line
subscribers the opportunity to buy shares of our 10% Cumulative Convertible
Preferred Stock as part of the upfront payments collected from subscribers,
PLDT was able to raise Php281 million, Php94 million and Php464 million in
2004, 2003 and 2002, respectively.  As approved by the NTC, the SIP was made
optional in 2003 from being compulsory in earlier years.</p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Cash
dividend payments amounted to Php1,692 million in 2004, Php1,603 million in
2003 and Php1,582 million in 2002, all of which were paid solely to preferred
shareholders of PLDT.  In 2001, cash
dividend payments totaled Php1,819 million, of which Php402 million was paid to
common shareholders of PLDT and the remainder to its preferred shareholders.  The most recent cash dividend declaration made by PLDT
on its common stock was on May 5, 2005 at Php21 per common share to holders of record as at June 3, 2005 payable
on July 14, 2005.  On March 1,
 2005, PLDT declared cash dividend at
Php14 per common share to holders of record as at March 31, 2005 which was paid on May 12, 2005.  This
was the first cash dividend declaration to common shareholders since March
2001.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Contractual Obligations and Commercial Commitments </i></b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Contractual Obligations</i></p>

<p style='line-height:10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The
following table discloses our contractual obligations outstanding as at December 31, 2004:</p>

<div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>

<p style='page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:97.32%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:14.3pt'>
 <td   rowspan=2 valign=top style=' padding:0in 0in 0in 0in;
 height:14.3pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   rowspan=2 valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:14.3pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Long-term debt </b></p>
 </td>
 <td   rowspan=2 valign=bottom style=' border:none;
 border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:14.3pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:14.3pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Long-term lease obligations</b></p>
 </td>
 <td   rowspan=2 valign=bottom style=' border:none;
 border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:14.3pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   rowspan=2 valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:14.3pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Unconditional purchase <br>
 obligations</b>(1)</p>
 </td>
 <td   rowspan=2 valign=bottom style=' border:none;
 border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:14.3pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   rowspan=2 valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:14.3pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Other<br>
 long-term obligations</b></p>
 </td>
 <td   rowspan=2 valign=bottom style=' border:none;
 border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:14.3pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   rowspan=2 valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:14.3pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Total</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:14.25pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:14.25pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Operating </b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:14.25pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:14.25pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Capital</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=11 valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2005</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php28,020</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=center style='margin-right:8.65pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php725</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php673</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php4,405</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php33,823 </p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">25,867</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">580</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">379</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,136</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">27,962</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">29,396</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">439</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">258</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,127</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">31,220</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2008</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,589</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">373</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,127</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13,419</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">21,514</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2009</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14,174</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">350</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,126</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,597</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">24,254</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2010 and onwards</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">55,351</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,115</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">443</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,380</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">60,289</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php159,397</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> Php3,582</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php1,766</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php12,301</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php22,016</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php199,062</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:0in;text-indent:0in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>____________</i></p>

<p style='margin-left:0in;text-indent:0in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>(1)   Based on the
original Air Time Purchase Agreement with AIL.</i></p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Long-term Debt Obligations</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">For discussion of our long-term debt obligations, see <i>Note
12 &#150; Interest-bearing Financial Liabilities</i> to the accompanying
consolidated financial statements in Item 18.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Long-term Operating Lease Obligations</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b><i>Domestic
Fiber Optic Network Submerged Plant Agreement</i></b>.   On July 4,
 2000, PLDT entered into an agreement
with NTT World Engineering Marine Corporation, or NTT WEMC, for submarine cable
repair and other allied services in relation to the maintenance of PLDT's DFON
submerged plant for a period of five years up to July 4, 2005.   This agreement
has been extended up to the end of 2005.  Under this agreement, PLDT shall pay
NTT WEMC a fixed annual standing charge of US$2 million, excluding cost for the
use of a remotely-operated submersible vehicle at US$5,000 for every day of use
and repair cost computed at US$19,000 per day of actual repair.  As at December 31, 2004,
PLDT&#146;s aggregate remaining obligation under this agreement was approximately
Php69 million.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b><i>Digital Passage Service Contracts.</i></b>   PLDT has existing Digital Passage Service Contracts
with foreign telecommunication administrations for several dedicated circuits
to various destinations for ten to 25 years expiring at various dates.  As at December 31, 2004,
PLDT&#146;s aggregate remaining obligation under these contracts amounted to
approximately Php30 million.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>License Agreement with Mobius Management Systems (</i></b><b><i>Australia</i></b><b><i>) Pty Ltd., or Mobius</i></b><i>.   </i>PLDT
entered into a license agreement with Mobius pursuant to which Mobius has
granted PLDT a non-exclusive, non-assignable and non-transferable license for
the use of computer software components.  Under this agreement, Mobius is also
required to provide maintenance services for a period of one year at no
additional maintenance charge.  PLDT may purchase maintenance services upon
expiration of the first year for a fee of 15% of the current published license
fee.  As at December 31, 2004, PLDT&#146;s aggregate remaining obligation under this
agreement was approximately Php45 million.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b><i>Other
Long-term Operating Lease Obligations</i></b>.   The PLDT Group has various long-term lease contracts for periods
ranging from two to ten years covering certain offices, warehouses, cell sites,
telecommunication equipment locations and various office equipment.  In
particular, Smart has lease obligations aggregating Php3,185 million as at December 31, 2004 in
respect of office and cell site rentals with over 2,000 lessors nationwide,
PLDT has lease obligations aggregating Php119 million as at December 31, 2004,
and ePLDT has lease obligations aggregating Php134 million as at December 31, 2004 in
respect of certain office space rentals.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Long-term Capital Lease Obligations</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">For a discussion of our long-term capital lease
obligations, see <i>Note 12 &#150; Interest-bearing Financial Liabilities</i> to the
accompanying consolidated financial statements in Item 18.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Unconditional Purchase Obligations</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Air time Purchase Agreement with ACeS International
Limited</i></b>.   PLDT is a party to a
Founder NSP, Air Time Purchase Agreement with AIL in March 1997, which was
amended in December 1998, under which PLDT is granted the exclusive right to
sell AIL services in the Philippines.  In exchange, the Air Time Purchase
Agreement states that PLDT is required to purchase from AIL a minimum of US$5
million worth of air time annually over ten years commencing on the date of
commercial operations of the Garuda I Satellite.  </p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">In the event PT Asia Cellular Satellite&#146;s aggregate
billing revenue is less than US$45 million in any given year, the Air Time
Purchase Agreement states that PLDT has to make supplemental air time purchase
payments not to exceed US$15 million per year during the ten-year term.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">We
believe that the payment obligations under the Air Time Purchase Agreement
exceeded the economic benefits expected to be received under it as a result of
the delay in the launch of the satellite, unavailability of competitive
handsets and competitions from cellular services, occurrence of a partial
satellite loss, changes in the primary business of AIL and other factors
affecting its business.  Accordingly, we started negotiations with AIL for the
revision of the payment obligations under the Air Time Purchase in 2000.  As a
result of these negotiations, the effective date of the Air Time Purchase
Agreement became January 1, 2002.  In 2002, billings for satellite air time
were reduced to actual air time usage, less amount for marketing assistance to
service providers.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">PLDT
and the other founder NSPs are endeavoring to amend the Air Time Purchase
Agreement due to the occurrence of partial satellite loss, changes in the
primary business of ACeS and other events affecting the business.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">In
March 2003, PLDT, together with the other founder NSPs, entered into a
Standstill Agreement with AIL suspending the application and enforcement of the
minimum and supplemental air time payments under the original Air Time Purchase
Agreement.  The parties agreed that AIL shall provide PLDT and the other
founder shareholders, with unlimited use of air time for the year 2003 in
exchange for a fixed fee in the amount of US$3.8 million for PLDT.  Moreover,
PLDT is also obliged to purchase from AIL 13,750 satellite phone units in 2003
at US$395 F.O.B. per unit, subject to quarterly price adjustments.  The parties
to the Standstill Agreement also agreed to negotiate in good faith and use
their best efforts to reach agreement on a revised Air Time Purchase Agreement
before November 15, 2003 that will cover, among other things, the amended
minimum and supplemental air time payment provisions subject to the approval of
AIL&#146;s creditors.  </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">On
February 10, 2004, notwithstanding the ongoing negotiations, AIL advised PLDT
of the termination of the Standstill Agreement and the reinstatement of the
terms under the original Air Time Purchase Agreement effective January 1, 2002
following the lapse of the November 15, 2003 deadline set in the Standstill
Agreement for the negotiation of a revised Air Time Purchase Agreement.
Negotiations are continuing with the relevant parties towards an amicable
settlement of this matter.  </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">As
at December 31, 2004, PLDT&#146;s aggregate remaining minimum payables under the
original Air Time Purchase Agreement was Php11,962 million.  See Note 16 &#150;
Related Party Transactions and Note 22 &#150; Provisions and Contingencies to the
accompanying consolidated financial statements in Item 18 for further
discussion.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b><i>International
Affiliate Agreement with VeriSign, Inc., or VeriSign.</i></b>  On September
 15, 2000, ePLDT entered into an
agreement with VeriSign for the non-exclusive, non-transferable right and
license to use the VeriSign software, brand and Certification Practice
Statement for the purpose of approving, issuing, suspending or revoking digital
certificates for users of the internet or similar open systems in the Philippines
for a period of seven years.  Under this agreement, ePLDT is required to pay
VeriSign a certain percentage of the revenue derived from the services subject
to minimum annual royalty payments aggregating to US$11 million, which was
subsequently reduced to US$1 million, for the seven-year contract period.  In
addition, ePLDT was required to pay an annual support fee of US$0.5 million
during the first year and US$0.3 million in each year thereafter.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Effective
July 1, 2003, VeriSign has agreed to amend the Agreement and issued Addendum 6
to write-off all past due invoices and payments owed to VeriSign, which were
invoiced or scheduled to be invoiced under the agreement prior to this Addendum
6.  All royalty payments and annual support fees due through June 2003 were
part of the write-off in the amount of US$0.8 million.  For contract year 4
(September 2003 to August 2004), the annual support fee was reduced from US$0.3
million to US$40,000 and for contract years 5 to7 (September 2004 to August
2007) from US$0.3 million to US$0.16 million.  In addition, VeriSign agreed to
reduce the affiliate revenue sharing rates from 50% of suggested retail price
to 25% of suggested retail price for both enterprise and internet products for
12 months starting July 2003 and negotiable thereafter.  Moreover, effective July 1, 2004, VeriSign has agreed
to amend the Agreement and issued Addendum 8 as an extension of Addendum 6.
Under this amendment, the annual support fee for year 5 (September 2004 to
August 2005) will remain at US$40,000 and affiliate revenue sharing rates will
remain at 25%.  As at December 31, 2004,
ePLDT&#146;s aggregate remaining minimum obligation under this agreement was
approximately Php18 million pertaining to annual support fee.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b><i>Sale</i></b><b><i> and Purchase Agreement with</i></b><i> </i><b><i>Meridian</i></b><i>.  </i>For a
discussion of our sale and purchase agreement with Meridian with
a remaining obligation of Php1,561 million as at December 31, 2004, see <i>Note 9
&#150; Goodwill and Other Intangible Asset </i>to the accompanying consolidated
financial statements in Item 18.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b><i>Other
Unconditional Purchase Obligations.   </i></b>PLDT has various purchase contracts for periods ranging from two to
three years covering the use of a fraud management system, satellite hub and
remote VSAT network systems with an aggregate remaining obligation of
approximately Php321 million.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Other Long-term Obligations</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Mandatory Conversion and Purchase of Shares</i></b>.   As at December 31, 2004, PLDT had issued a total
of 3 million shares of Series V Convertible Preferred Stock, 5 million shares
of Series VI Convertible Preferred Stock and 4 million shares of Series VII
Convertible Preferred Stock in exchange for a total of 58 million shares of
Series K Class I Convertible Preferred Stock of Piltel, pursuant to the debt
restructuring plan of Piltel adopted in June 2001.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Each
share of Series V, VI and VII PLDT Convertible Preferred Stock is convertible
at any time at the option of the holder into one share of PLDT common stock.
On the date immediately following the seventh anniversary of the issue date of
the Series V and Series VI Convertible Preferred Stock and on the eighth
anniversary of the issue date of the Series VII Convertible Preferred Stock,
the remaining outstanding shares under these series will be mandatorily
converted into shares of PLDT common stock.  Under a put option exercisable for
30 days, holders of shares of common stock received on mandatory conversion
will be able to require PLDT to purchase such shares of PLDT common stock for
Php1,700 per share, or US$36.132 per share, and JP&yen;4,071.89 per share for
Series V, VI and VII PLDT Convertible Preferred Stock, respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As
at December 31, 2004, 515,818 shares of Series V Convertible Preferred
Stock and 545,122 shares of Series VI Convertible Preferred Stock had been
converted into shares of PLDT common stock.  The aggregate value of the put
option based on outstanding shares as at December 31, 2004 was Php22,016
million, of which Php13,419 million is payable on June 4, 2008 and Php8,597 million on June 4, 2009, if all of the
outstanding shares of Series V, VI and VII PLDT Convertible Preferred Stock
were mandatorily converted and all the underlying shares of common stock were
put to PLDT.  The market value of the underlying shares of common stock was
Php14,685 million, based on the market price of PLDT shares of common stock of
Php1,360 per share as at December 31,
 2004.  See <i>Note 14 &#150; Preferred Stock
Subject to Mandatory Redemption</i> and <i>Note 15 &#150;Stockholders&#146; Equity</i> to
the accompanying consolidated financial statements in Item 18 for further
discussion.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Commercial Commitments</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">As at December
 31, 2004, our outstanding commercial
commitments, in the form of letters of credit, amounted to Php1,504 million.
These commitments will expire within one year.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779219"></a><a name="_Toc46082278">Impact of Inflation and Changing Prices</a></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Inflation
can be a significant factor in the Philippine economy, and we are continually
seeking ways to minimize its impact.  In recent periods, while decreases in the
relative value of the peso have had a significant effect on us, we do not
believe inflation has had a material impact on our operations.  The average
inflation rate in the Philippines in 2004 was 6.0% compared to 3.1% in 2003.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779220"></a><a name="_Toc46082279">Other Information</a></p>

<p align=left style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.55in;margin-bottom:.0001pt;text-align:left' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">&nbsp;</h6>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0"><b>Piltel
Debt Exchange Transaction</b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">On July 2, 2004, Smart acquired from Piltel&#146;s
creditors approximately US$289 million, or 69.4%, in the aggregate of Piltel&#146;s
total outstanding restructured debt at that time, in exchange for Smart debt
and a cash payment by Smart.  In particular, Smart paid an amount in cash of
US$1.5 million, or Php84 million, and issued new debt of US$283.2 million, or
Php15,854 million in July 2, 2004.  </p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">The breakdown of the total amount of Smart debt issued
to participating Piltel creditors is as follows:</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-indent:-.5in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2007 Facility in the amount of
US$0.2 million payable in full in December 2007;</p>

<p style='margin-left:1.0in;text-indent:-.5in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2008 Facility in the amount of
US$2.9 million payable in full in December 2008; and</p>

<p style='margin-left:1.0in;text-indent:-.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2014 Facility in the amount of
US$280.1 million payable in full in June 2014.</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Interest for the above facilities is payable every
quarter at a floating rate of three months US$ LIBOR plus 1.00% for the 2007 and 2008 facilities,
and a fixed rate of 2.25% per annum for the 2014 facility.  Furthermore, a
portion of the 2014 facility amounting to US$144 million has a variable yield option whereby the creditors have an option to elect
for an early repayment at a discount either
in December 2007 at 52.5% of the relevant debt amount or in December 2008 at
57.5% of the relevant debt amount.  See &#147;Item 5.  Operating and Financial
Review and Prospects &#150; Other Information &#150; Piltel Debt Exchange Transaction&#148;
and<i> Note 12 &#150; Interest-bearing Financial Liabilities</i> to the accompanying
consolidated financial statements in Item 18.</p>

<p align=left style='margin-bottom:0in;margin-bottom:.0001pt;text-align:left;
text-indent:.55in;page-break-after:auto' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">&nbsp;</h6>

<p align=left style='margin-bottom:0in;margin-bottom:.0001pt;text-align:left;
page-break-after:auto' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><i>Changes in Management
Agreements between Piltel and Smart</i></h6>

<p align=left style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.55in;margin-bottom:.0001pt;text-align:left;page-break-after:auto' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">&nbsp;</h6>

<p align=left style='margin-bottom:0in;margin-bottom:.0001pt;text-align:left;
text-indent:.5in;page-break-after:auto' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">On December
 22, 2004, Piltel and
Smart entered into a new omnibus agreement which superseded and replaced their
existing facilities management agreement, customer service management
agreement, administrative support and management services agreement as well as
the facilities service agreement.  The original agreements were entered into in
2000 to cover services outsourced by Piltel to Smart covering such areas as
network management, customer care and general administration as well as its
50-50 revenue sharing arrangement to compensate Smart for Piltel&#146;s use of
Smart's network for Piltel&#146;s <i>Talk 'N Text</i> service.  </h6>

<p align=left style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.55in;margin-bottom:.0001pt;text-align:left;page-break-after:auto' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">&nbsp;</h6>

<p align=left style='margin-bottom:0in;margin-bottom:.0001pt;text-align:left;
text-indent:.5in;page-break-after:auto' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">Pursuant to the terms of the original agreements, which
call for a periodic review of the various terms and conditions contained
therein, Piltel and Smart undertook a review of the revenue sharing arrangement
as well as other relevant fee structures after <i>Talk 'N Text</i> surpassed
the 3.5 million subscriber mark in June 2004.  In August 2004, both companies
approved the joint engagement of an international, external telecommunications
consultant to provide a framework for considering the extent and timing of any
changes in the various agreements.</h6>

<p align=left style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.55in;margin-bottom:.0001pt;text-align:left' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">&nbsp;</h6>

<p style='margin-left:4.5pt;text-indent:31.5pt' style="margin-top:0;margin-bottom:0">In its review, the consultant noted that the combined
subscriber base of Smart and Piltel has reached such a level that the benefits
of the resulting economies of scale should be reflected in the revenue sharing
agreement.  The consultant also noted that declining network and operating
costs per subscriber derived from improvements in productivity and technology
should also be taken into consideration in the sharing of revenues.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-bottom:0in;margin-bottom:.0001pt;text-align:left;
text-indent:.5in' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">The new
omnibus agreement took effect from January 1, 2004 and covers the provision of all
the services under the original agreements, in consideration of a revenue
sharing agreement of 80-20 in favor of Piltel.  In addition, Smart also
compensated Piltel in an amount of Php3.7
billion representing Piltel&#146;s equitable share of revenues as a result of Piltel
having achieved a critical mass of subscribers and the resultant &#147;economies of
scale&#148; earlier than anticipated.</h6>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-indent:0in' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><em>Transfer of Piltel Series K Class I Convertible
Preferred Stock and Piltel Common Stocks from PLDT to Smart</em></h3>

<p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;
punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">For
a discussion of the transfer by PLDT to Smart of Piltel Series K Class I
Convertible Preferred Stock and Piltel Common Stock, please see &#147;Item 4.
Information on the Company &#150; Organization &#150; Changes in Piltel&#146;s Shareholdings&#148;.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc75779222"></a><a
name="_Toc46082281">Item 6.        Directors,
Senior Management and Employees</a></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779223"></a><a name="_Toc46082282">Directors, Key Officers and Advisors</a></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The names, ages, positions and periods of service of
the directors (including independent directors) and key officers and advisors
of PLDT as at May 31, 2005 are as follows:</p>

<p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0  style='width:6.5in;border-collapse:collapse;border-collapse:collapse !msorm'>

 <tr>
 <td  valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>Name</u></b></p>
 </td>
 <td  valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>
 </td>
 <td  valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b><u>Age</u></b></p>
 </td>
 <td  valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>
 </td>
 <td  valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>Position(s)</u></b></p>
 </td>
 <td  valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-left:18.6pt;text-align:center;
 text-indent:-18.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b><u>Period during which individual
 has served as such</u></b></p>
 </td>
 </tr>

 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Manuel V. Pangilinan</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">58</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Director </p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">November 24, 1998 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Chairman
 of the Board </p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">February 19, 2004
 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Napoleon
 L. Nazareno</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">55</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Director</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">November 24, 1998 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">President and Chief</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">February 19, 2004 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Executive Officer </p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Antonio
 O. Cojuangco</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">53</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Director</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">April 21, 1982 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Helen
 Y. Dee</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">61</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Director</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">June 18, 1986 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Corazon S. de la Paz </p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">64</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Director</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">September 25, 2001 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Albert
 F. del Rosario</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">65</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Director</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">November 24, 1998 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Ray
 C. Espinosa</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">49</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Director</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">November 24, 1998 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Rev.
 Fr. Bienvenido F. Nebres, S.J.(1) </p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">65</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Director</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">November 24, 1998 to present</p>
 </td>
 </tr>
 <tr style='height:9.45pt' style='height:9.45pt !msorm'>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.45pt'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Pedro
 E. Roxas(1) </p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:9.45pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:9.45pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">49</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:9.45pt'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.45pt'>
 <p style="margin-top:0;margin-bottom:0">Director</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:9.45pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.45pt'>
 <p style="margin-top:0;margin-bottom:0">March 1, 2001 to present</p>
 </td>
 </tr>
 <tr style='height:11.7pt' style='height:11.7pt !msorm'>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:11.7pt'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Oscar
 S. Reyes(1) </p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:11.7pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:11.7pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">58</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:11.7pt'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">Director</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">April 5, 2005 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Shigeru
 Yoshida</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">55</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Director</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">March 31, 2004 to present</p>
 </td>
 </tr>
 <tr style='height:10.35pt' style='height:10.35pt !msorm'>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.35pt'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Sadao
 Maki</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:10.35pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:10.35pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">52</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:10.35pt'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.35pt'>
 <p style="margin-top:0;margin-bottom:0">Director</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:10.35pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.35pt'>
 <p style="margin-top:0;margin-bottom:0">August 3, 2004 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Teresita
 T. Sy-Coson(1)</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">54</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Director</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">June 8, 2004 to present</p>
 </td>
 </tr>
 <tr style='height:10.35pt' style='height:10.35pt !msorm'>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.35pt'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Ma. Lourdes C. Rausa-Chan</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:10.35pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:10.35pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">51</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:10.35pt'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.35pt'>
 <p style="margin-top:0;margin-bottom:0">Corporate Secretary</p>
 <p style="margin-top:0;margin-bottom:0">Senior Vice President,
 Corporate Affairs and Legal Services Head</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:10.35pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.35pt'>
 <p style="margin-top:0;margin-bottom:0">November 24, 1998 to present</p>
 <p style="margin-top:0;margin-bottom:0">January 5, 1999 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Anabelle L. Chua</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">44</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Treasurer</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">February 1, 1999 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Senior
 Vice President </p>
 <p style="margin-top:0;margin-bottom:0">Corporate Finance and <br>
 Treasury Head</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">February 26, 2002
 to present </p>
 <p style="margin-top:0;margin-bottom:0">March 1, 1998 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Rene G. Ba&#241;ez</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">50</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Senior Vice President<br>
 Chief Governance Officer</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">January 25, 2005 to present</p>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">October 5, 2004 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">George
 N. Lim</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">52</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Senior Vice President <br>
 Network Services Head</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">February 26, 1999 to present</p>
 <p style="margin-top:0;margin-bottom:0">February 1, 2003 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Claro Carmelo P. Ramirez</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">45</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Senior Vice President </p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">July 1, 1999 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">International and Carrier <br>
 Business Head</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">June 16, 2004 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Victorico
 P. Vargas</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">53</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Senior Vice President<br>
 Human Resources Head</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">February 15, 2000 to present <br>
 <br>
 </p>
 </td>
 </tr>
 <tr style='height:20.25pt' style='height:20.25pt !msorm'>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:20.25pt'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Rosalie
 R. Montenegro</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:20.25pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:20.25pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">56</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:20.25pt'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:20.25pt'>
 <p style="margin-top:0;margin-bottom:0">Senior Vice President<br>
 Call
 Center Business Head</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:20.25pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:20.25pt'>
 <p style="margin-top:0;margin-bottom:0">July 10, 2000 to present</p>
 <p style="margin-top:0;margin-bottom:0">February 1, 2003 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Ariel A. Roda</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">42</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Senior Vice President</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">August 10, 2000 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Business Development Head</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">February 1, 2003 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Alfredo
 S. Panlilio</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">42</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Senior Vice President</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">May 8, 2001 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">PLDT Global Corporation
 President</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">June 16, 2004 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Ernesto
 R. Alberto</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">44</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Senior Vice President <br>
 Corporate Business Head</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">May 15, 2003 to present</p>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Menardo G. Jimenez, Jr.</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">42</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Senior Vice President</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">December 9, 2004 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Retail Business Head</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">June 16, 2004 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Celso
 T. Dimarucut</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">43</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">First Vice President</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">January 31, 2003 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Financial Reporting and<br>
 Control Head</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">August 16, 2000 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Jun
 R. Florencio(2)</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">49</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">First Vice President</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">March 28, 2000 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Audit and Assurance Head</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">September 1, 2000 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Christopher
 H. Young</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">47</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Chief Financial Advisor </p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">November 24, 1998 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Peter
 J. Lawrence</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">45</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Chief Financial Advisor of
 Smart</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">November 9, 1998 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Donald
 J. Rae</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">43</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Chief Operations Advisor of
 Smart</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">January 1, 1999 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Anastacio
 R. Martirez</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">51</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Personal Communications and Mobile Services
 Head of Smart</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">September 1, 1993 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Rolando G. Pe&#241;a</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">44</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Smart Network Services Head</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">September 1, 1994 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Ramoncito S. Fernandez</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">49</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Administration and Materials
 Management Head &#150; Smart </p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">June 16, 2000 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">George H. Tan</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">46</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">ePLDT Chief Finance Officer</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">September 15,
 2000 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&#151;&#151;&#151;&#151;&#151;&#151;&#151;</p>

<p style='line-height:1.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:56.25pt;text-indent:-56.25pt' style="margin-top:0;margin-bottom:0"><i>(1)&nbsp;&nbsp;
</i><i> Independent directors.</i></p>

<p style='margin-left:56.25pt;text-indent:-56.25pt' style="margin-top:0;margin-bottom:0"><i>(2)&nbsp;&nbsp;
</i><i>Promoted to Senior Vice
President on </i><i>June 14, 2005</i><i>.</i></p>

<p style='line-height:1.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='line-height:1.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Under the Shareholders Agreement
entered into among First Pacific, NTT Communications and NTTC-UK on September 28, 1999,
NTT Communications is entitled to nominate two directors to the PLDT board of
directors and First Pacific and its affiliates are entitled to nominate six
directors.  The Shareholders Agreement also entitles NTT Communications to
nominate two directors to Smart's board of directors and, subject to specified
conditions, one member to the board of directors of all other PLDT
subsidiaries.  NTT Communications is also entitled to appoint members or
advisors of certain PLDT management and board committees, including the audit,
governance and nomination, executive compensation and finance committees
described below under &#147;&#151; Audit, Governance and Nomination, Executive
Compensation and Finance Committees.&#148;  Under the Shareholders Agreement, each
party has agreed, under certain circumstances, to vote its shares of common
stock in favor of the nominees designated by the other parties.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The business address of Anastacio
R. Martirez, Peter J. Lawrence, Donald J. Rae, Ramoncito S. Fernandez and Rolando G. Pe&#241;a is Smart Tower II, Ayala Avenue, Makati City, Philippines
and the business address of George H. Tan is L.V. Locsin Building, 6752 Ayala Avenue,
 Makati City.  The business address of each of the other directors, key
officers and advisors identified above is the Ramon Cojuangco Building, Makati Avenue,
 Makati City, Philippines.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following is a brief description of the business
experience during the past five years of each of our directors, key officers
and advisors.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Mr. Manuel V. Pangilinan,</b> the chairman of our board and governance and
nomination committee, is also the chairman of the boards of Smart, Piltel,
ePLDT and Mabuhay Satellite.  He was PLDT's president and chief executive
officer from November 1998 up to his appointment as chairman effective February 19, 2004.
He founded and was the managing director of First Pacific from 1981 and served
as its executive chairman from February 1999 to May 2003.  He has been
re-appointed as managing director and chief executive officer of First Pacific
effective June 2003.  He is also the chairman of Metro Pacific Corporation and
president commissioner of P.T. Indofood Sukses Makmur tbk.  He also holds
directorships in Philippine Telecommunications Investment Corporation, Metro
Asia Link Holdings, Inc., Enterprise Investments Holdings, Inc., Metro Pacific
Assets Holdings, Inc., Metro Pacific Resources, Inc. and Negros Navigation Co.,
Inc.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Napoleon L. Nazareno</b> was appointed as
the president and chief executive officer of PLDT effective February 19, 2004 and
is concurrently the president and chief executive officer of Smart and Piltel.
He is the chairman of the board of I-Contacts Corporation and the president of
ACeS Philippines.  He also holds directorships in Philippine Telecommunications
Investment Corporation and some subsidiaries of PLDT, namely, ePLDT and,
Mabuhay Satellite.  He was the president and chief executive officer of Metro
Pacific Corporation from August 1995 until December 1999 and of Piltel from
November 1998 to January 2003.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Antonio O. Cojuangco</b> served as
president and chief executive officer of PLDT for over 12 years until November
1998 and, thereafter, as the chairman of our board until February 19, 2004.
He is the president and chief executive officer of the television network
ABC-5, the chairman of the Bank of Commerce and CAP Life Insurance Corporation,
and a director of C&amp;O Investment Realty Corporation, Kuok Phil. Properties,
Inc. and Philippine Telecommunications Investment Corporation.  He is also a
member of our finance committee.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Ms. Helen Y. Dee</b> is the chairperson and president and/or chief executive officer of
Hydee Management &amp; Resources, Inc., House of Investments, Inc., Tameena
Resources, Inc., Grepalife Asset Management Corporation and Grepalife Fixed
Income Fund Corporation.  She is also the chairperson of Landev Corporation,
Manila Memorial Park, Inc., Mapua Information Technology Center, Inc.,. and
Hi-Eisai Pharmaceuticals, Inc., Universal Malayan Reinsurance Corporation and
Lifetime Plans, Inc.  She is the president of Moira Management, Inc., Equitas
Insurance Brokers, Inc. and YGC Corporate Services, Inc.  She is the vice
chairperson of Zurich Insurance (Taipei) Ltd. and also sits on the boards of EEI Corporation,
Hermosa Ecozone Development Corporation, Petro Energy Resources Corp., Nippon
Life Insurance Co., South Western Cement Corp., Seafront Resources Corp.,
Manila Peninsula Hotel, Inc., Malayan Insurance Co., Inc., MICO Equities, Inc.,
and La Funeraria Paz, Inc.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Ms.
Corazon S. de la Paz</b> is the vice
chairperson of the Social Security Commission and the president and chief
executive officer of the Social Security System.  She is a director of San
Miguel Corporation, Philex Gold, Inc., Philex Mining Corporation, Philippine
Health Insurance Corporation, Republic Glass Holding Corp., PCI Leasing and
Finance, Inc., PCI Capital Corporation, Equitable PCIB Inc., Equitable
Cardnetwork, Inc. and Ionics Inc.  She has been elected president of the
International Social Security Association, an association based in Geneva, Switzerland,
for a three-year term commencing in September 2004.  Ms. de la Paz is also the chairman of the finance
committee and an advisor to the audit committee of the board of directors of
PLDT.   Until June 30, 2001, she was the senior partner and the chairperson of
Joaquin Cunanan &amp; Co., a member firm of PricewaterhouseCoopers Worldwide.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Albert F. del Rosario</b> is the
Philippine Ambassador Plenipotentiary and Extraordinary to the United States of America.  He is the chairman of the board of Gotuaco del
Rosario and Associates, Inc. and Philippine Indocoil Corporation, the vice
chairman of the board of Asia Traders Insurance Corporation, and the president
of ADR Holdings, Inc. and ARS Reinsurance Brokers, Inc.  He is a director of First
Pacific and Commissioner of PT Indofoods Sukses Makmur Tbk.  Mr. del Rosario
also sits on the boards of Infrontier (Philippines), Inc., Philippine
Telecommunications Investment Corporation, Smart Communications Holdings, Inc.
and LMG Chemicals Corporation, Pacific Plaza Condominium Corporation and
Pacific Plaza Towers Condominium Corporation.  He is also the chairman of the
board of trustees of the PLDT Beneficial Trust Fund and the executive
compensation committee of the Board of Directors of PLDT. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Atty.
Ray C. Espinosa</b> is the president of
ePLDT and Philippine Home Cable Holdings, Inc. and the chairman of Parlance and
Vocativ, Ventus, Infocom, Sidera Technologies, Inc., Digital Paradise, Inc.,
netGames, Inc., ePDS, Inc., iPlus Intelligent Networks, Inc. and mySecureSign,
Inc.  He is a member of the boards of BayanTrade Dotcom, Inc., Cyber Bay
Corporation, Nation Broadcasting Corporation, Enterprise Investment Holdings,
Inc., Tahanan Mutual Building and Loan Association, Inc., Unilink Communications Corporation,
Mediaquest Holdings, Inc., Stradcom Corporation and PLDT Global.  He is a
trustee of PLDT Beneficial Trust Fund and PLDT Foundation, Inc. and a member of
the executive compensation committee of the board of directors of PLDT.  Until June 30, 2000, he was
a partner and member of the executive committee of the law firm SyCip Salazar
Hernandez &amp; Gatmaitan.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Rev.
Fr. Bienvenido F. Nebres, S.J.</b> is the
president of the Ateneo de Manila University and a member of the boards of
trustees of the Asian Institute of Management and several other private
educational institutions.  He is the chairman of the Audit Committee and a
member of the governance and nomination committee of the board of directors of
PLDT.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Pedro E. Roxas</b> is the chairman and/or
chief executive officer of various business organizations in the fields of
agri-business, sugar manufacturing and real estate development including Roxas
Holdings, Inc., CADP Group Corp., Roxaco Land Corporation and Roxas &amp;
Company, Inc.  He also holds directorships in BDO Private Bank, and Fuego
Development Corporation.  Mr. Roxas serves as a member of the audit committee
and executive compensation committee of the board of directors of PLDT.  </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b>Mr. Oscar S. Reyes</b> is the chairman of Unicapital Securities, Inc.,
Actron Industries, Inc. and Link Edge, Inc.  He also holds directorships in the
Bank of the Philippine Islands, BPI Capital Corporation, Manila Water
Corporation, Mindoro Resources Ltd., Sunlife of Canada (Phils.) Inc., Philippine Electric Co., Universal Robina
Corporation, and some other private companies.  He serves as a member of the
audit committee, executive compensation committee and governance and nomination
committee of the board of directors of PLDT.  He was a member of the advisory
board of PLDT for four years until April 2005.  Mr. Reyes was the Country
Chairman of the Shell Companies in the Philippines from 1997 to 2001 and concurrently the Managing
Director of Shell Philippines Exploration B.V. until 2002.  From 2002 to 2004,
he served as the management adviser of Shell Philippines Exploration B.V. and
as CEO Adviser of Pilipinas Shell Petroleum Corporation.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Shigeru Yoshida</b> is a vice president
of NTT Worldwide Telecommunications Corporation, or NTT Worldwide.  From 2001
to 2003, he was the vice president of the Solution Division and led the
strategic planning and project development of &#147;e-Japan&#148;, a governmental program
to enhance Japanese national IT infrastructure.  He headed the Business Users,
Consumers and Office Users Business Division and managed the sales activity of
Arcstar network and international telephone service from 2000 to 2001.  Prior
to that, he worked at the Business Communications Headquarters of NTT Worldwide
and headed the global private network sales activities for big customers.  He
is an advisor of the finance committee and audit committee and a member of the
governance and nomination committee and executive compensation committee of the
board of directors of PLDT.  Mr. Yoshida replaced Mr. Taketo Suzuki as director
effective March 31, 2004.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Sadao Maki </b>is a vice president and
the executive manager for corporate planning of NTT Communications.  From 1999
to 2001, he was the vice president for global strategy and from 2001 to 2004,
the vice president and executive manager for accounts and finance, of NTT
Communications.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Ms.
Teresita Sy-Coson </b>has worked with the
SM Group of Companies for over 30 years.  She has varied experience in retail
merchandising, mall development and banking businesses.  She was actively involved
in Shoemart development and now serves as president of Shoemart, performing an
active role in the department store&#146;s merchandising and operational
activities.  As chairman of Banco de Oro Universal Bank, she leads the bank&#146;s
marketing endeavors.  She is also the executive vice president of SM Prime
Holdings, Inc. and vice chairman of SM Investments Corporation.  She is a
member of the Finance Committee and the Governance and Nomination Committee of
the Board of Directors of PLDT.  She also holds directorships in Asia-Pacific
Computer Technology Center, Inc., BDO Capital Insurance Brokers, Inc., First
Asia Realty Development Corp. and other private institutions.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Ms.
Ma. Lourdes C. Rausa-Chan </b>is senior
vice president for corporate and legal affairs and the general counsel and
corporate secretary of PLDT. She also serves as corporate secretary of several
subsidiaries of PLDT.  She was the group vice president for legal affairs, and
the corporate secretary of some subsidiaries of Metro Pacific Corporation for
over ten years prior to joining PLDT in November 1998.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Ms.
Anabelle L. Chua</b> is the treasurer of
PLDT and senior vice president for PLDT&#146;s corporate finance and treasury
sector.  She was a vice president at Citibank, N.A. where she worked for ten years
prior to her appointment as first vice president in March 1998, as treasurer in
February 1999 and as a senior vice president on February 26, 2002.  She has over
15 years of experience in the areas of corporate finance, treasury, financial
control and credit risk management.  Ms. Chua is currently a director of the
Philippine Stock Exchange, Inc., Smart, ePLDT and several subsidiaries of
ePLDT.  She is also a member of the board of trustees of the PLDT Beneficial
Trust Fund and PLDT Foundation, Inc.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Rene G. Ba&#241;ez </b>served as Commissioner
of the Philippine Bureau of Internal Revenue from February 2001 to August
2002.  Prior to that, he was the Head of Support Services and Tax Management
Group of PLDT from January 1999 to January 2001.  He served as Group Vice
President for Tax Affairs of Metro Pacific Corporation for three years until
December 1998.  He is a non-voting member of the Governance and Nomination
Committee of the board of directors of PLDT.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
George N. Lim</b> is senior vice
president for the network services group of PLDT.  He has over 25 years of work
experience in telecommunications management.  Prior to his appointment as head
of Network Services in February 2003, he served as head of Network Development
and Provisioning from February 1999 and as head of Marketing from December
1993.  He is a director of some subsidiaries of PLDT and Philippine Home Cable
Holdings, Inc.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Claro Carmelo P. Ramirez</b> is senior
vice president for the retail business group of PLDT before his appointment as
international and carrier business group head in June 2004.  He has over 20
years of work experience in the field of marketing.  He worked as associate
director for Colgate-Palmolive Company, Global Business Development in New York, and
as marketing director for Colgate-Palmolive Argentina, S.A.I.C.  Prior to his appointment as senior vice
president in July 1999, he was the marketing director of Colgate-Palmolive
Philippines, Inc.  He is a director of some subsidiaries of PLDT.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Victorico P. Vargas</b> is senior vice
president for human resources management of PLDT.  He has over 20 years of work
experience in various industries (insurance, consumer goods, real estate,
banking and finance, and telecommunications/IT) in the area of human resource
management.  Prior to joining PLDT in February 2000, he was the country human
resources director of Citibank N.A., Manila, and spent two years outside the Philippines as
country human resources director of Citibank, N.A., Bangkok.  He
is a director of some subsidiaries of PLDT and is a non-voting member of the
Governance and Nomination Committee of the Board of Directors of PLDT.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Ms.
Rosalie R. Montenegro</b> is senior vice
president for the call center business group of PLDT.  Prior to her appointment
as a senior vice president on July 2000, she served as consumer banking head of
ABN-AMRO Savings Bank and as vice president for remote banking of ABN-AMRO
Consumer Bank, Singapore Regional Office from 1997 to 1999.  She was vice
president for global consumer banking, CitiPhone banking and service quality
director of Citibank N.A. from 1985 to 1996 servicing both banking and the
credit cards businesses.  Ms. Montenegro is also the president of Vocativ, Parlance and Ventus
and a director of some subsidiaries of PLDT.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Ariel A. Roda</b> is senior vice
president for business development group of PLDT.  He was a co-managing
director of ePLDT from August 2000 to February 2003 and prior to that, served
as the Information Technology head of PLDT beginning in April 1999.  He has
over 15 years of work experience in the field of information technology.  He
held various positions in Manila Electric Company and was its information
technology head until he joined PLDT in April 1999.  He is a director of some
subsidiaries of PLDT.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Alfredo S. Panlilio</b> is the president
of PLDT Global Corporation.  He served as senior vice president for the
international and carrier business group prior to his current post and
previously headed the corporate business group of PLDT.  He has over 15 years
of experience in the field of business development and information technology.
He held management positions at IBM Philippines, Inc. and was the vice
president for business development of the Lopez Communications Group (ABS-CBN
Broadcasting, BayanTel and SKYCable) prior to joining PLDT in July 1999.  Mr.
Panlilio is also a director of some subsidiaries of PLDT.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Ernesto R. Alberto</b> is senior vice
president for the corporate business group of PLDT.  He has over 20 years of
experience in the area of corporate banking, relationship management and
business development.  Prior to joining PLDT in May 2003, he was a vice
president and the group head of the national corporate group of Citibank N.A., Manila from
1996 to 2003, and previously served as vice president and group head of the
relationship management group of Citytrust Banking Corporation.  Mr. Alberto is
a director of some subsidiaries of PLDT.</p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0"><b>Mr.
Menardo G. Jimenez, Jr.</b> is head of the retail business group of PLDT
effective June 16, 2004 and has managed various broadcasting and production
companies in radio, television and stage-theater prior to his appointment as
Corporate Communications and Public Affairs Head of PLDT in December 2001.  He
is a recipient of numerous significant awards for cultural achievement and in
the fields of musical theater, broadcast promotions and publications.  He is
the President of Mediaquest Holdings, Inc.</p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0"><b>Mr.
Jun R. Florencio</b> is senior vice president for PLDT&#146;s audit and assurance
group.  He has over 20 years of experience in the areas of external and
internal audit, credit management, information technology, financial management
and controllership. He held various positions in the finance organization of
Eastern Telecommunications and was the financial controller of Smart for four
years prior to his appointment as vice president and head of the financial
reporting and control sector of PLDT in April 1999.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Celso T. Dimarucut</b> is first vice
president for PLDT&#146;s financial reporting and control sector. Prior to joining
PLDT, he was a vice president and the controller of Piltel and had previously
served as the group financial controller for domestic subsidiaries of
Metropolitan Bank and Trust Company.  He specialized in audit, tax and business
advisory services for ten years having worked with an Indonesian firm, Prasetio
Utomo &amp; Co. for three years and with SGV &amp; Co. for seven years.  He
also serves as director and treasurer of several of PLDT&#146;s subsidiaries.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Christopher H. Young</b>, our chief
financial advisor, worked in PricewaterhouseCoopers in London and Hong Kong from
1979 until 1987, at which time he joined First Pacific in Hong Kong as
group financial controller.  He joined Metro Pacific Corporation in 1995 as
finance director, a position he held until he joined us in November 1998.</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Peter J. Lawrence</b>, chief financial
advisor to Smart, is a chartered accountant and spent a number of years as a
senior tax consultant with Arthur Andersen &amp; Co. (Australia).
He joined First Pacific in 1991 as vice president for group taxation and, in
January 1996, was promoted to the position of finance director &#151; Asia Link
Holdings Limited, the telecommunications arm of First Pacific.</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Donald J. Rae</b>, the chief operations
advisor to Smart, served as the chief operating officer for Time Telecommunications
Sdn. Bhd. in Malaysia prior to joining Smart in January 1999.  He also
spent over ten years with Deloitte &amp; Touche Consulting specializing in the
Asian telecommunications sector.</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Anastacio R. Martirez</b> is a director
and the head of personal communications and mobile services of Smart.  He is
the president of I-Contacts Corporation, a subsidiary of Smart, and a director
of ACeS Philippines.  He has been involved in general and marketing management
for over 25 years with experience in consumer packaged goods, consumer and
industrial lighting, telecommunications and banking.  He held senior marketing
positions in SKYCable, Philips Electronics and Lighting and Citytrust Banking
Corporation.</p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Rolando G. Pe&#241;a </b>is the head of
Smart&#146;s Network Services.  He was first
vice president for Technical Operations Group at Digitel, where he worked for
five years prior to his appointment as a director for Smart&#146;s Local Exchange
Carrier Services in September 1994.  He held various positions in Eastern Telecommunications
Philippines, Inc. From 1982 until 1989.  He has over 22 years of experience in
charge of operations and maintenance, regional business and technical and
operations support.  He sits in the boards of Smart, Piltel, Wolfpac, Netopia
and Meridian.  </p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Ramoncito S. Fernandez </b>is the head of
administration and materials management
division of Smart.  He is also currently a
member of the board of directors of Smart, Piltel, I-Contact and Wolfpac.
Until June 2000, he was the Executive Vice President in charge of marketing,
sales and logistics of Starpack Philippines, Inc. He has over 15 years of
experience in the packaging business. He also worked for Union Carbide Philippines in
the manufacturing and industrial engineering.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
George H. Tan </b>is the senior vice
president - group chief finance officer for ePLDT effective August 16, 2004. He
is in charge of the overall financial management of the ePLDT Group of
Companies currently comprised of ePLDT, Parlance, Vocativ, Ventus, Infocom,
mySecureSign, iPlus, DigiPar, netGames and ePDS. He also has oversight
responsibility over ePLDT's equity investments in Stradcom, Bayantrade and TSSI
(FAME). He currently manages the accounting, finance, treasury and
administrative support at ePLDT. He is actively involved in investment analysis
and decisions, cost control and management, product costing and pricing of
Vitro products and services, fund raising activities, financial analysis and
business reviews.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0"><a name="_Toc75779224"></a><a
name="_Toc46082283">Terms of Office</a></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
directors of PLDT are elected each year to serve until the next annual meeting
of shareholders and until their successors are elected and qualified.  The term
of office of all officers is coterminous with that of the board of directors
that elected or appointed them.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779225"></a><a name="_Toc46082284">Family Relationships</a></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">None
of the directors, key officers and advisors of PLDT and Smart named above are
related to each other.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779226"></a><a name="_Toc46082285">Compensation</a> of Key Management Personnel of the PLDT Group</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">The aggregate compensation paid to the directors, chief
executive officer, and other key officers and advisors, as a group, for 2004
amounted to approximately Php217 million.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Each
of the directors, including the members of the advisory board of PLDT, is
entitled to a director's fee in the amount of Php125,000 for each meeting of
the board attended, except Manuel V. Pangilinan, who has waived his right to
receive a director's fee.  Each of the members or advisors of the audit,
executive compensation, governance and nomination and finance committees is
entitled to a fee in the amount of Php50,000 for each committee meeting
attended.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style="margin-top:0;margin-bottom:0">There are no agreements between
PLDT Group and any of its directors and key officers and advisors providing for
benefits upon termination of employment, except for such benefits to which they
may be entitled under PLDT's retirement plan.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style="margin-top:0;margin-bottom:0">Long-term Incentive Plan</p>

<p style='page-break-after:avoid;punctuation-wrap:hanging;
text-autospace:ideograph-numeric ideograph-other;border:none' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On August 3, 2004, PLDT&#146;s Board of Directors approved the establishment
of the long-term incentive plan, or LTIP, for eligible key executive officers
and advisors of PLDT and its subsidiaries, which is administered by the
executive compensation committee. The LTIP is a four-year cash plan covering
the period of performance commencing on January 1, 2004
and ending on December 31, 2007, or the Performance Cycle.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The LTIP is intended to provide meaningful,
contingent, financial incentive compensation for eligible executives, officers
and advisors of the PLDT Group, who are consistent performers and contributors
to the achievement of the long-term strategic plans and objectives, as well as
the functional strategy and goals of the PLDT Group.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Payment of awards under the LTIP is contingent upon the achievement of
the PLDT common share price target and a cumulative consolidated net income
target of the PLDT Group by the end of the Performance Cycle, as approved by
our board of directors.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
LTIP will be administered by the executive compensation committee which has the
authority to determine (a) eligibility and identity of participants; (b) the
award attributable to each participant based on the participant&#146;s annual base
compensation and taking into account such participant&#146;s seniority,
responsibility level, performance potential, tenure with the PLDT Group, job
difficulty and such other measures as the executive compensation committee
deems appropriate; (c) the level of achievement of the performance objectives;
and (d) the actual award payable to each participant based on the level of
achievement of the performance objectives.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0"><a name="_Toc75779227"></a><a
name="_Toc46082286">Executive Stock
Option Plan</a></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style="margin-top:0;margin-bottom:0">On April 27, 1999
and December 10, 1999, the board of directors and shareholders, respectively,
of PLDT approved the executive stock option plan, or ESOP covering a total of
1,289,745 shares of common stock and the amendment of the seventh article of
the Articles of Incorporation of PLDT denying the pre-emptive right of holders
of common share to subscribe for any issue of the 1,289,745 shares of common
stock pursuant to the ESOP.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Stock options may be granted pursuant to the ESOP to
management executives and advisors/consultants of PLDT.  The executive compensation
committee of our board determines the eligibility of a management executive or
advisor/consultant to receive a stock option as well as the number of shares of
common stock to be covered by each stock option.  Stock options granted under
the ESOP become fully vested after the completion of five years from the
relevant option offer date.  All outstanding stock options became fully vested
in December 2004.  An option holder may exercise his option to purchase that
number of vested shares of common stock underlying his option, in whole or in
part, at the price at Php814 per share, subject to adjustment upon the
occurrence of specific events described in the ESOP.  The option exercise
period is until December 10, 2009.  The option holder is required to give written
notice of exercise to the executive compensation committee, indicating the
number of vested shares to be purchased, accompanied by payment in cash of the
full amount of the purchase price for those shares.  </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in !msorm;margin-left:4.5pt;text-indent:
- -4.5pt;line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc75779228"></a><a
name="_Toc46082287"><b>Share Ownership</b></a><b> </b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table sets forth information regarding
ownership of our common stock, preferred stock and executive stock options as
at May 31, 2005 by our continuing directors, key officers and
advisors.  Each individual below owns less than 1% of our outstanding common
shares and less than 1% of our preferred shares. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:93.78%;margin-left:5.5pt;border-collapse:collapse'>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 5.5pt 0in 5.5pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:7.25pt'>
 <p align=center style='text-align:center;line-height:94%;
 page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Name of Owner</b></p>
 </div>
 </td>
 <td   valign=bottom style=' padding:0in 5.5pt 0in 5.5pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Shares of</b></p>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Common Stock</b></p>
 </div>
 </td>
 <td   valign=bottom style=' padding:0in 5.5pt 0in 5.5pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Shares of</b></p>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Preferred Stock</b></p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Shares of Common Stock Underlying Executive</b></p>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Stock Options(1)</b></p>
 </div>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p style='text-align:justify;line-height:94%;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='text-align:justify;line-height:12.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Manuel V. Pangilinan</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">90,874</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">360</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">97,571</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:13.05pt'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt;height:13.05pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Napoleon L. Nazareno</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt;height:13.05pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,427</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt;height:13.05pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">495</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt;height:13.05pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='text-align:justify;line-height:12.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Antonio O. Cojuangco</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,060</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='text-align:justify;line-height:12.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Helen Y. Dee</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:7.9pt;margin-bottom:.0001pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">22,055(2)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">180</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='text-align:justify;line-height:12.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Corazon S. de la Paz</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:3.8pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,126,000(3)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Albert F. del Rosario</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">85,025</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,560</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Ray C. Espinosa</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,701</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
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 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">38,342</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Sadao Maki</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
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 </td>
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 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Rev. Fr. Bienvenido F. Nebres, S.J </p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:3.8pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">388(4)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
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 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Oscar S. Reyes</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">360</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
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 <td   valign=top style=' background:#E0E0E0;padding:
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 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Pedro E. Roxas</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
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 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
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 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">540</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
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 <p align=right style='margin-right:7.1pt;text-align:right;
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 </td>
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 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Teresita T. Sy-Coson</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">101</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,060</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
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 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Shigeru Yoshida</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
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 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">11</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
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 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
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 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Ma. Lourdes C. Rausa-Chan</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
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 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">77</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
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 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">350</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
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 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">22,302</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Anabelle L. Chua</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,540</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
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 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">13,738</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Rene G. Ba&#241;ez</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">540</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">George N. Lim</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">200</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">360</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">13,256</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Claro Carmelo P. Ramirez</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,500</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">14,496</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Victorico P. Vargas </p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:3.8pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,000(5)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">180</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">23,835</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Rosalie R. Montenegro </p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
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 <td   valign=top style=' background:#F3F3F3;padding:
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 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
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 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">16,006</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Ariel A. Roda </p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,500</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
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 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">13,938</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Alfredo S. Panlilio </p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:3.8pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">600(6)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
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 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,151</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Ernesto R. Alberto</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
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 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
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 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
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 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Menardo G. Jimenez, Jr.</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">22</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
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 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
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 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
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 <td   valign=top style=' background:#E0E0E0;padding:
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 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Jun R. Florencio</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">15</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">530</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,593</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Celso T. Dimarucut</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
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 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">460</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">14,218</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Christopher H. Young</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:3.8pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">80,312(6)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
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 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Peter J. Lawrence</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">32,000</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">180</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Donald J. Rae</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
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 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
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 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Anastacio R. Martirez</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:3.8pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,000(6)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">380</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
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 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Rolando G. Pe&#241;a</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
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 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
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 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
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 <td   valign=top style=' background:#F3F3F3;padding:
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 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Ramoncito S. Fernandez</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">150</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
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 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
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 <td   valign=top style=' background:#E0E0E0;padding:
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 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">George H. Tan</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
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 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
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 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
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 <td   valign=top style=' background:#F3F3F3;padding:
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 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
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 <td   valign=top style=' background:#F3F3F3;padding:
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 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
</table></center></div>

<p style='border:none' style="margin-top:0;margin-bottom:0">_____________</p>

<p style='margin-left:13.7pt;text-indent:-13.7pt;line-height:
2.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0"><i>(1)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>As at </i><i>May 31, 2005</i><i>,
under PLDT&#146;s ESOP, options to purchase 251,104</i> shares of<i>
common stock have been granted to the key officers listed in the table above.
No options have been granted to non-executive directors.  All outstanding
options are exercisable at an exercise price of Php814 per share and have an
expiration date of December 10, 2009.  All outstanding options were fully
vested as at December 10, 2004.   </i></p>

<p style='margin-left:13.7pt;text-indent:-13.7pt;line-height:
2.0pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(2)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>As chairperson and president
of Hydee Management &amp; Resources, Inc., Ms. Dee may exercise voting rights
in respect and may be considered to have beneficial ownership of 21,957 shares
of common stock owned by Hydee Management Resources, Inc.</i></p>

<p style='margin-left:13.7pt;text-indent:-13.7pt;line-height:
2.0pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(3)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>As president and chief
executive officer of the Social Security System, Ms. de la Paz may exercise
voting rights in respect of 12,125,999 shares of common stock owned by the
Social Security System and may be considered to have beneficial ownership of
these shares.</i></p>

<p style='margin-left:13.7pt;text-indent:-13.7pt;line-height:
2.0pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(4)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>As president of Ateneo de
Manila University, Rev. Fr. Nebres may exercise the voting rights in respect of
the 386 shares of common stock owned by the Ateneo de Manila University and may
be considered to have beneficial ownership of these shares.</i></p>

<p style='margin-left:13.7pt;text-indent:-13.7pt;line-height:
2.0pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(5)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>Includes 3,500 PLDT common
shares that were lodged with the Philippine Central Depository, Inc.</i></p>

<p style='margin-left:13.7pt;text-indent:-13.7pt;line-height:
2.0pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(6)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>The total PLDT common shares
have been lodged with the Philippine Central Depository, Inc.</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
aggregate number of common and preferred shares directly and indirectly owned
by directors, key officers and advisors listed above as at May 31, 2005 were
12,461,505 and 11,595, respectively, or 7.3022% and 0.0016% of PLDT&#146;s
outstanding common and preferred shares, respectively. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Board
of Directors</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our
board of directors is composed of 13 members, at least four of whom, namely
Rev. Fr. Bienvenido F. Nebres, S.J., Mr. Pedro E. Roxas, Ms. Teresita T.
Sy-Coson and Mr. Oscar S. Reyes, are independent directors as determined by our
Governance and Nomination Committee.  The independence standards/criteria are
provided in our By-Laws and Manual on Corporate Governance pursuant to which,
in general, a director may not be deemed independent if such director is, or in
the past five years had been, employed in an executive capacity by us or any
company controlling, controlled by or under common control with us or he is, or
within the past five years had been, retained as a professional adviser by us
or any of our related companies, or he is not free from any business or other
relationships with us which could, or could reasonably be perceived, to
materially interfere with his exercise of independent judgment in carrying out
his responsibilities as a director.</p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779229"></a><a name="_Toc46082288">Audit, Governance and Nomination, Executive
Compensation and Finance Committees</a></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Our board of directors is
authorized under the by-laws to create committees, as it may deem necessary.
We currently have four board committees, namely, the audit, governance and
nomination, executive compensation and finance committees, the purpose of which
is to assist our board of directors.  Each of these committees has a
board-approved written charter that provides for such committee&#146;s composition,
membership qualifications, functions and responsibilities, conduct of meetings,
and reporting procedure to the board of directors.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Audit Committee</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our
audit committee is composed of three members all of whom are independent directors,
namely, Fr. Bienvenido F. Nebres, S.J., who chairs the committee, Mr. Pedro E.
Roxas and Mr. Oscar S. Reyes.  Mr. Shigeru Yoshida, who is a non-independent
member of our board of directors, Ms. Corazon S. de la Paz and Mr. Roberto R.
Romulo serve as advisors to the audit committee.  All of the members of our
audit committee are financially literate and Ms. Corazon de la Paz, an advisor
to the committee is an accounting and financial management expert.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As
provided for in the audit committee charter, the purposes of the audit
committee are to assist our board of directors:</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
in its oversight of PLDT&#146;s
accounting and financial reporting principles and policies and internal audit
controls and procedures;</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
in its oversight of the integrity
of PLDT&#146;s financial statements and the independent audit thereof;</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
in its oversight of PLDT&#146;s
compliance with legal and regulatory requirements; </p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
in selecting and recommending the
external auditors to be appointed by our board of directors, evaluating such
external auditors&#146; qualifications and independence and, where deemed
appropriate, replacing the external auditors; and</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
in its oversight of the
performance of the internal auditing organization and the external auditors.</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">With
respect to the external auditors, the audit committee has the following duties
and powers:</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
to review and evaluate the
qualifications, performance and independence of the lead partner of the
external auditors;</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
to select and recommend the
external auditors to be appointed by the board of directors and to recommend
the removal or replacement of the external auditors;</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
to review in consultation with the
head of the internal auditing organization and the chief financial advisor the
fees charged by the external auditors for audit and non-audit services;</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
to approve all audit engagement
fees and terms, as well as all significant non-audit engagements with the
external auditors;</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
to ensure that the external
auditors prepare and deliver annually the statement as to independence and
auditors&#146; statement, to discuss with the external auditors any relationships or
services disclosed in such statements that may impact the objectivity,
independence or quality of services of our external auditors and to take
appropriate action in response to such statements to satisfy itself of the
external auditor&#146;s independence;</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
to ensure that the lead partner of
the external auditors is rotated at least once every five (5) years; </p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
to instruct the external auditors
that they are ultimately accountable to the board of directors through the
audit committee; and</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
to resolve disagreements between
management and the external auditors regarding financial reporting. </p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
audit committee also has the authority to retain or obtain advice from special
counsel or other experts or consultants in the discharge of their
responsibilities without the need for Board approval.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Our
board of directors intends to amend the audit committee charter at its next
board meeting to conform the audit committee charter to Article XI of our
By-Laws, as amended on June 28, 2005.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Governance and Nomination Committee</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our governance and nomination committee is composed of
five voting and two non-voting members.  Three of the voting members are
independent directors namely, Fr. Bienvenido F. Nebres, S.J., Ms. Teresita T.
Sy-Coson and Mr. Oscar S. Reyes.  Mr. Manuel V. Pangilinan who serves as
chairman and Mr. Shigeru Yoshida are the other voting members and Mr. Victorico
P. Vargas and Mr. Rene G. Ba&#241;ez are the non-voting members. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The
principal functions and responsibilities of our Governance and Nomination
Committee are:</p>

<p style='text-indent:.5in;line-height:9.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To review and evaluate the
qualifications of the persons nominated for election as directors (including
independent directors) or other positions requiring Board appointment;</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To identify the qualified nominees
and recommend that the Board select and recommend such qualified nominees for
election as directors/independent directors at the annual meeting of
shareholders; and</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To provide an assessment on our
Board&#146;s effectiveness in the process of replacing or appointing new directors
or members of the Board Committees.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i>Executive Compensation
Committee</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Our executive compensation
committee is composed of five members, all of whom are regular members of our
board of directors.  Two of these five members are independent directors,
namely Mr. Pedro E. Roxas and Mr. Oscar S. Reyes, and three are non-independent
directors, namely Mr. Albert F. del Rosario, who is chairman of the executive
compensation committee, Mr. Ray C. Espinosa and Mr. Shigeru Yoshida. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The principal functions and responsibilities of our
Executive Compensation Committee are:</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To provide guidance to and assist
our board of directors in developing a compensation philosophy or policy
consistent with our culture, strategy and control environment;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:0in' style="margin-top:0;margin-bottom:0">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To oversee the development and
administration of our compensation programs; and</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To review and approve corporate
goals and objectives relevant to the compensation of our Chief Executive
Officer, evaluate the performance of our Chief Executive Officer in light of
those goals and objectives, and set the compensation level of our Chief
Executive Officer based on such evaluation.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Finance Committee</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our finance committee is composed of five members,
three of whom are regular members of our board of directors.  Ms. Corazon S. de
la Paz, who chairs the committee, Mr. Antonio O. Cojuangco and Ms. Teresita T.
Sy-Coson are regular members of our board of directors.  Mr. Christopher H.
Young, our chief financial advisor and <br>
Mr. Amado S. Bagatsing comprise the fourth and fifth members.  Mr. Shigeru
Yoshida, who is a non-independent member of our board of directors, serves as
an advisor to the committee.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
principal function of our finance committee is to consider and approve our
loans, funding and financing requirements involving amounts of US$3 million or
above but less than US$5 million.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Directors&#146;
Involvement in Legal Proceedings</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
Chairman, Mr. Manuel V. Pangilinan, in his capacity as Chairman of the Board of
Metro Pacific Corporation, a stockholder of Metro Tagaytay Land Company, Inc.,
or MTLCI, and four (4) other individuals are respondents in I.S. 04-A-1057 for
alleged violation of Article 315(1)(b)(&#147;estafa&#148;) of the Revised Penal Code
filed by Mr. Vicente A. Tuason on behalf of Universal Leisure Club, Inc., or
ULCI, and Mr. Jose L. Merin on behalf of Universal Rightfield Property
Holdings, Inc., or URPHI.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
the complaint-affidavit, Messrs. Tuason and Merin alleged that, in violation of
the trust reposed by ULCI and certain contractual commitments and
representations, MTLCI, with the participation and/or conformity of the
respondents, misappropriated and converted Php139 million that ULCI entrusted
for the purpose of incorporating Golf Land Co., Inc., or GLCI, a corporation to
be wholly-owned by MTLCI and to which a property of MTLCI was to be transferred
in exchange for shares in GLCI.  Said GLCI shares were then supposed to be
transferred to ULCI.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Based
on his counsel&#146;s advice, Mr. Pangilinan cannot be held liable for violating
Article 315(1)(b) of the Revised Penal Code because no document or other
evidence has been presented to prove that Mr. Pangilinan actually participated
in the negotiation, preparation, approval, execution and/or implementation of
the agreement/contract upon which the claims of the complainants are
purportedly based, much less that Mr. Pangilinan, with abuse of trust and
confidence, misappropriated any amounts paid by ULCI to MTLCI.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On March 25, 2004, Mr.
Pangilinan submitted his counter-affidavit in I.S. No. 04-A-1057.  In a Joint
Resolution dated June 7, 2004, the City Prosecution Office of Makati dismissed all
charges in the Estafa case against Mr. Pangilinan.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">On
 November 16, 2004, ULCI, through Messrs. Tuason and Merin, filed with the
Department of Justice a Petition for Review dated November 6, 2004 contesting the Resolution of the City Prosecution Office.  The Department of Justice will
rule on the petition after the lapse of the reglementary period for the
submission of Mr. Pangilinan&#146;s comment thereon.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779230"></a><a name="_Toc46082289">Employees and Labor Relations</a></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">As at December 31, 2004, we had 18,433 employees within
the PLDT Group.  PLDT had 9,476 employees at the end of 2004, of which 49% were
rank and file employees, 47% were management/supervisory staff and 4% were
executives.  This number represents a decrease of 754 employees, or
approximately 7%, from the staff level as at the end of 2003, mainly as a
result of the ongoing MRP.  From a peak of 20,312 at the end of 1994, PLDT&#146;s
number of employees has declined by 10,836, or 53%, by the end of 2004.  As at December 31, 2003, we had 17,653 and 10,230 employees under the PLDT Group and PLDT,
respectively.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">PLDT
has three employee unions, the members of which in the aggregate represent 42%
of the employees of the PLDT Group.  We
consider our relationship with our rank-and-file employees&#146; union, our
supervisors' union and our sales supervisors' union to be good.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">On
March 8, 2005, PLDT and PLDT Sales Supervisors&#146; Union, or PSSU, concluded and
signed a new three-year collective bargaining agreement, or CBA, covering the
period from January 1, 2005 to December 31, 2007.  This CBA provides each
member monthly salary increases of 8% of basic pay or Php2,000, whichever is
higher, for 2005; 10% of basic pay or Php2,700, whichever is higher, for 2006;
and another 10% of basic pay or Php2,400, whichever is higher, for 2007.  Other
highlights of this CBA were improvements of existing benefits and a one-time
signing bonus of Php33,000, including a Php3,000 goodwill bonus, for each
member of PSSU.  Furthermore, a Php4,000 one-time clothing allowance was also
provided under the CBA.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On
January 20, 2005, PLDT and <i>Gabay ng Unyon sa Telekomunikasyon ng mga
Superbisor</i>, or GUTS, our supervisors&#146; union, concluded and signed a new
three-year CBA covering the period from January 1, 2005 to December 31, 2007.
This CBA provides each member monthly salary increases of 8% of basic pay or
Php2,000, whichever is higher, for 2005; 10% of basic pay or Php2,700,
whichever is higher, for 2006; and another 10% of basic pay or Php2,400,
whichever is higher, for 2007.  Other highlights of this CBA are improvements
of existing benefits and a one-time signing bonus of Php33,000, including a
Php3,000 goodwill bonus, for each member of GUTS.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On
February 13, 2004, PLDT and the <i>Manggagawa ng Komunikasyon sa Pilipinas</i>,
or MKP, our rank-and-file employees&#146; union, concluded and signed a new
three-year CBA covering the period from November 9, 2003 to November 8, 2006.
This CBA provides each member a signing bonus equivalent to one month salary
plus Php10,000; monthly salary increases of Php1,800, Php1,850 and Php2,450 for
the first year, second year and third year, respectively; an increase in
monthly relay station allowance from Php500 to Php600; an increase in per diem
from Php500 to Php570; a food station allowance of Php650 per covered employee;
an increase in yearly Christmas gift certificate from Php6,000 to Php7,000; an
increase in the amount of coverage under the group life insurance plan from
Php400,000 to Php500,000; and an additional contribution of Php1 million to the
Educational Loan Fund.  Other highlights of this CBA include emergency loan
eligibility, an emergency case hospitalization clause and additional benefits
under the medical hospitalization plan for single members&#146; dependents.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0"><a name="_Toc75779231"></a><a
name="_Toc46082290">Pension and
Retirement Benefits</a></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Defined Benefit Plans</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
have defined benefit pension plans, covering substantially all of our permanent
and regular employees, except Smart, which require contributions to be made to
a separate administrative fund.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">PLDT has a trustee-managed,
non-contributory defined benefit, or Benefit Plan, providing for retirement and
death benefits and service terminal pay to substantially all permanent and
regular employees.  The Benefit Plan provides benefits upon normal retirement
beginning at age 65, early retirement beginning at age 50 or completion of at
least 30 years of credited service, voluntary separation beginning at age 40 or
completion of at least 15 years of credited service, total and physical
disability, death and involuntary separation.  Benefits under the Benefit Plan
are based on the employee's final monthly basic salary and length of service.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
normal retirement benefit is equal to a percentage of the final monthly basic
salary per year of credited service.  The percentage is 100% for those with
less than 15 years of service at retirement and 125% for those with 15 years of
service at retirement.  Thereafter, the percentage increases by 5% for every
additional year of credited service up to a maximum of 200%.  The early
retirement benefit is equal to the accrued normal retirement benefit with
salary and service at the date of early retirement.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
the event the benefit plan's assets were insufficient to pay the required
retirement benefits, PLDT would be obligated to fund the amount of the
shortfall.  In addition, claims of PLDT's employees for retirement benefits
that have accrued would rank above the claims of all other creditors of PLDT,
in the event of PLDT's bankruptcy or liquidation.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
spent Php551 million for pension, retirement and similar benefits for our
employees for the year 2004.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">For
more information about the benefit plan, see <i>Note 17 &#150; Employee Benefits </i>to
the accompanying consolidated financial statements in Item 18.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779234"></a><a name="_Toc46082293">Item 7.        Major Shareholders and Related Party
Transactions</a></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
following table sets forth information regarding ownership of PLDT common share
as at May 31, 2005 of all shareholders known to us to beneficially own more
than 5% of PLDT's common share.  All shares of PLDT's common stock have one
vote per share.  </p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0  style='width:473.5pt;border-collapse:collapse;border-collapse:collapse !msorm'>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:1.6pt'>
 <p align=center style='margin-bottom:0in;margin-bottom:
 .0001pt;text-align:center;line-height:94%;page-break-after:avoid;border:
 none;padding:0in' style="margin-top:0;margin-bottom:0">Name of
 Beneficial Owner</p>
 </div>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p style='line-height:94%;page-break-after:avoid;border:none;
 padding:0in' style="margin-top:0;margin-bottom:0">Name
 and Address of Record Owner and Relationship with Issuer</p>
 </div>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p style='line-height:94%;page-break-after:avoid;border:none;
 padding:0in' style="margin-top:0;margin-bottom:0">Citizenship</p>
 </div>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p style='line-height:94%;page-break-after:avoid;border:none;
 padding:0in' style="margin-top:0;margin-bottom:0">Title
 of Class</p>
 </div>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;line-height:94%;
 page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Number of Shares Held</b></p>
 </div>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;line-height:94%;
 page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>% of Class</b></p>
 </div>
 </td>
 </tr>

 <tr style='page-break-inside:avoid;height:8.1pt' style='page-break-inside:
 avoid !msorm;height:8.1pt !msorm'>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm;
 height:8.1pt'>
 <p style='text-align:justify;line-height:94%;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm;
 height:8.1pt'>
 <p style='text-align:justify;line-height:94%;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm;
 height:8.1pt'>
 <p style='text-align:justify;line-height:94%;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm;
 height:8.1pt'>
 <p style='text-align:justify;line-height:94%;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm;
 height:8.1pt'>
 <p style='text-align:justify;line-height:94%;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm;
 height:8.1pt'>
 <p style='line-height:94%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.05pt' style='page-break-inside:
 avoid !msorm;height:10.05pt !msorm'>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm;
 height:10.05pt'>
 <p align=left style='margin:0in;margin-bottom:.0001pt;
 text-align:left;line-height:93%;page-break-after:auto' style="margin-top:0;margin-bottom:0">First
 Pacific(2)</p>
 </td>
 <td  rowspan=2 valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm;
 height:10.05pt'>
 <p align=left style='text-align:left;line-height:93%' style="margin-top:0;margin-bottom:0">Philippine Telecommunications Investment Corp.(1)<br>
 12/F Ramon Cojuangco</p>
 </td>
 <td  rowspan=2 valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm;
 height:10.05pt'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">Philippine </p>
 </td>
 <td  rowspan=2 valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm;
 height:10.05pt'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">Common</p>
 </td>
 <td  rowspan=2 valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm;
 height:10.05pt'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">26,034,263</p>
 </td>
 <td  rowspan=2 valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm;
 height:10.05pt'>
 <p align=center style='margin-right:.2in;text-align:center;
 line-height:94%' style="margin-top:0;margin-bottom:0">15.26</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.05pt' style='page-break-inside:
 avoid !msorm;height:10.05pt !msorm'>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm;
 height:10.05pt'>
 <p align=left style='margin:0in;margin-bottom:.0001pt;
 text-align:left;line-height:93%;page-break-after:auto' style="margin-top:0;margin-bottom:0">24/F Two
 Exchange Square 8 Connaught Place,
 Central, <br>
 Hong Kong</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">Building, Makati Avenue, Makati City</p>
 </td>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">Corporation</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='margin-right:.2in;text-align:center;
 line-height:94%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.75pt' style='page-break-inside:
 avoid !msorm;height:6.75pt !msorm'>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm;
 height:6.75pt'>
 <p style='text-align:justify;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm;
 height:6.75pt'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm;
 height:6.75pt'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm;
 height:6.75pt'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm;
 height:6.75pt'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm;
 height:6.75pt'>
 <p align=center style='margin-right:.2in;text-align:center;
 line-height:94%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='text-align:justify;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">Metro Pacific Resources, Inc.</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">Philippine </p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">Common</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">17,112,534</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='margin-right:.2in;text-align:center;
 line-height:94%' style="margin-top:0;margin-bottom:0">10.03</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='text-align:justify;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">c/o Picazo Law Office</p>
 </td>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">Corporation</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='margin-right:.2in;text-align:center;
 line-height:94%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='text-align:justify;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">17th, 18th and 19th Floors</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='margin-right:.2in;text-align:center;
 line-height:94%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='text-align:justify;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">Liberty Center</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='margin-right:.2in;text-align:center;
 line-height:94%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='text-align:justify;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">104 H.V. Dela Costa St.</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='margin-right:.2in;text-align:center;
 line-height:94%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='text-align:justify;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">Salcedo Village, Makati City</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='margin-right:.2in;text-align:center;
 line-height:94%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='text-align:justify;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='margin-right:.2in;text-align:center;
 line-height:94%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='text-align:justify;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">Larouge B.V.(2)</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">Netherlands</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">Common</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">10,091,579</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='margin-right:.2in;text-align:center;
 line-height:94%' style="margin-top:0;margin-bottom:0">5.91</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='text-align:justify;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">c/o Picazo Law Office</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">Corporation</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='margin-right:.2in;text-align:center;
 line-height:94%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='text-align:justify;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">17th, 18th and 19th Floors</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='margin-right:.2in;text-align:center;
 line-height:94%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='text-align:justify;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">Liberty Center</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='margin-right:.2in;text-align:center;
 line-height:94%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='text-align:justify;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">104 H.V. Dela Costa St.</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='margin-right:.2in;text-align:center;
 line-height:94%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='text-align:justify;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">Salcedo Village, Makati City</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='margin-right:.2in;text-align:center;
 line-height:94%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='text-align:justify;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='margin-right:.2in;text-align:center;
 line-height:94%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=left style='margin:0in;margin-bottom:.0001pt;
 text-align:left;line-height:93%;page-break-after:auto' style="margin-top:0;margin-bottom:0">PCD
 Nominee Corporation(3)</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">See Footnote 3 below</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">Philippine</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">Common</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">68,787,787</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='margin-right:.2in;text-align:center;
 line-height:94%' style="margin-top:0;margin-bottom:0">40.31</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">G/F MSE Building</p>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">6767 Ayala Avenue, <br>
 Makati City</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">Corporation</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='margin-right:.2in;text-align:center;
 line-height:94%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='text-align:justify;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='margin-right:.2in;text-align:center;
 line-height:94%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=left style='margin:0in;margin-bottom:.0001pt;
 text-align:left;line-height:93%;page-break-after:auto' style="margin-top:0;margin-bottom:0">NTT
 Communications(4)</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">Same as Record Owner</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">Japanese </p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">Common</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">25,266,971</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='margin-right:.2in;text-align:center;
 line-height:94%' style="margin-top:0;margin-bottom:0">14.81</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='text-align:justify;line-height:93%' style="margin-top:0;margin-bottom:0">1-6 Uchisaiwai-Cho</p>
 <p style='text-align:justify;line-height:93%' style="margin-top:0;margin-bottom:0">I-Chome, Chiyoda-ku</p>
 <p style='text-align:justify;line-height:93%' style="margin-top:0;margin-bottom:0">Tokyo 100-8019, Japan</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">Corporation</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='margin-right:.2in;text-align:center;
 line-height:94%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:93%;
 page-break-after:auto' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='margin-right:.2in;text-align:center;
 line-height:94%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=left style='margin:0in;margin-bottom:.0001pt;
 text-align:left;line-height:93%;page-break-after:auto' style="margin-top:0;margin-bottom:0">J. P.
 Morgan (Hong
 Kong)
 Nominees Limited(5)</p>
 </td>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">See Footnote 5 below</p>
 </td>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">HongKong<br>
 Corporation</p>
 </td>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">Common</p>
 </td>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">22,048,327</p>
 </td>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='margin-right:.2in;text-align:center;
 line-height:94%' style="margin-top:0;margin-bottom:0">12.92</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='text-align:justify;line-height:93%' style="margin-top:0;margin-bottom:0">20/F Chater House </p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='margin-right:.2in;text-align:center;
 line-height:94%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">8 Connaught Road, Central, Hong Kong</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='margin-right:.2in;text-align:center;
 line-height:94%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='text-align:justify;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='margin-right:.2in;text-align:center;
 line-height:94%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">Social Security System(6)</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">Same as Record Owner</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">Philippine</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">Common</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">12,125,999</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='margin-right:.2in;text-align:center;
 line-height:94%' style="margin-top:0;margin-bottom:0">7.11</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">SSS Building</p>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">East Avenue, Diliman, Quezon City</p>
 </td>
 <td  valign=bottom style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">Corporation</p>
 </td>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p align=center style='text-align:center;line-height:93%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm'>
 <p style='margin-right:.2in;line-height:94%' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-bottom:6.0pt' style="margin-top:0;margin-bottom:0"><u>                                </u></p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0">(1)&nbsp;&nbsp;
    Pursuant to a resolution
adopted by the Board of Directors of Philippine Telecommunications Investment
Corporation, or PTIC, a copy of which had been furnished to PLDT, the President
of PTIC, Mr. Manuel V. Pangilinan, has the continuing authority to represent
PTIC at any and all meetings of the stockholders of a corporation in which PTIC
owns of record or beneficially any shares of stock or other voting security,
and to sign and deliver, in favor of any person he may deem fit, a proxy or
other power of attorney, with full power of delegation and substitution,
authorizing his designated proxy or attorney-in-fact to vote any and all shares
of stock and other voting securities owned of record or beneficially by PTIC at
any and all meetings of the stockholders of the corporation issuing such shares
of stock or voting securities.</p>

<p style='line-height:50%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='line-height:50%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0">(2)&nbsp;&nbsp;
    First Pacific Company Ltd., or
First Pacific, which beneficially owned 31.2% of our common shares as at May 31, 2005, has a
24.2% economic interest in PLDT based on its direct and indirect PLDT common
shareholdings through the intermediate holding companies PTIC, MPRI and Larouge
B.V.  In
January 2005, First Pacific Finance Limited (&#147;FPFL&#148;), a wholly-owned subsidiary
of First Pacific, issued US$199 million Zero Coupon Guaranteed Exchangeable
Notes due 2010, guaranteed by First Pacific and exchangeable into common shares
of PLDT held by First Pacific (the &#147;Exchangeable Notes&#148;). Assuming full
exchange of the Exchangeable Notes at the initial value of the Exchange Property,
the Exchangeable Notes will be exchangeable into 6,784,091 common shares of
PLDT (subject to adjustment), representing approximately 4.0% of our
outstanding common shares, and reducing First Pacific&#146;s beneficial ownership in
PLDT from approximately 31.2% to 27.2%, and its economic interest in PLDT
(defined as its effective interest in the shares of PLDT) from approximately
24.2% to 20.2%. Assuming full exchange of the Exchangeable Notes, Larouge&#146;s
direct beneficial ownership would be reduced from 10,091,579 common shares of
PLDT (representing approximately 5.9% of the outstanding common shares of PLDT)
to 3,307,488 common shares of PLDT (representing approximately 1.9% of the
outstanding common shares of PLDT.</p>

<p style='line-height:50%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0">(3)&nbsp;&nbsp;
    Registered owner of shares held
by participants in the Philippine Central Depositary, Inc., or PCD, a private
company organized to implement an automated book entry system of handling
securities transactions in the Philippines.  Under the PCD procedures, when an issuer of a
PCD-eligible issue will hold a stockholders&#146; meeting, the PCD shall execute a
pro-forma proxy in favor of its participants for the total number of shares in
their respective principal securities account as well as for the total number
of shares in their client securities account.  For the shares held in the
principal securities account, the participant concerned is appointed as proxy
with full voting rights and powers as registered owner of such shares.  For the
shares held in the client securities account, the participant concerned is
appointed as proxy, with the obligation to constitute a sub-proxy in favor of
its clients with full voting and other rights for the number of shares
beneficially owned by such clients.  Based on the information provided by PCD
to PLDT, none of the owners of the PLDT common shares registered under the name
of PCD Nominee Corporation owns more than 5% of PLDT&#146;s outstanding common stock
as at May 31, 2005, except The Hongkong and Shanghai Banking Corporation, or
HSBC, and Standard Chartered Bank which own approximately 18.8% and 6.8%,
respectively, of PLDT&#146;s outstanding common stock as at May 31, 2005.  The
Company has no knowledge if any beneficial owner of the shares under the HSBC
and Standard Chartered Bank accounts own more than 5% of PLDT&#146;s outstanding
common stock as at May 31, 2005.</p>

<p style='line-height:50%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">PCD
account also includes 7,101,210 shares beneficially owned by the Social
Security System and 10,091,579 shares beneficially owned by Larouge B.V.
Please refer to footnote 6.  It also includes 2,298,741 shares owned by
Fidelity International Limited, or FIL, a corporation incorporated in the U.S.A. and
1,197,809 shares owned by FMR Corporation, or FMR, a corporation incorporated
in Bermuda.  In addition, FIL holds ADRs evidencing ADSs representing 242,700 PLDT
common shares and FMR holds ADRs evidencing ADSs representing 4,991,050 PLDT
common shares.  The combined common shareholdings and ADS holdings of FIL and
FMR totals 8,730,300 equivalent to 5.12% of PLDT&#146;s outstanding common stock as
at May 31, 2005 (Please refer to footnote 5).  FIL and FMR have
indicated in their Philippine SEC Form 18-A filing that their acquisition of
PLDT shares is for the purpose of portfolio of FIL and FMR and they do not
intend to acquire shares to take control of PLDT.</p>

<p style='line-height:50%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0">(4)&nbsp;&nbsp;
    Based on information provided
to PLDT, NTT Communications Corporation, or NTT Communications, is a
wholly-owned subsidiary of Nippon Telegraph and Telephone Corporation.  </p>

<p style='line-height:50%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0">(5)&nbsp;&nbsp;
    Holds shares as nominee of
JPMorgan Chase Bank, successor depositary under the Common Stock Deposit
Agreement, dated October 14, 1994, as amended on February 10, 2003, between
JPMorgan Chase Bank and the holders of American Depositary Receipts (ADRs)
evidencing American Depositary Shares (ADSs) representing shares of common
stock of the Company (the &#147;Deposit Agreement&#148;).  Under the Deposit Agreement,
if the depositary does not receive voting instructions from a holder of ADRs,
such holder will be deemed to have instructed the depositary to provide a
discretionary proxy to a person designated by PLDT for the purpose of
exercising the voting rights pertaining to the shares of common stock
represented by such holder of ADRs, except that no discretionary proxy will be
given with respect to any matter as to which substantial opposition exists or
which materially and adversely affects the rights of the holders of such ADRs.
This account includes 242,700 shares underlying the ADS owned by FIL and
4,991,050 shares underlying the ADS owned by FMR.  Please refer to footnote 3. </p>

<p style='line-height:50%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0">(6)&nbsp;&nbsp;
    Consists of 5,024,789 shares registered
in the name of the Social Security System and 7,101,210 shares held of record
by PCD Nominee Corporation.  Ms. Corazon S. de la Paz, as President and Chief
Executive Officer of the Social Security System,
may exercise the voting rights in respect of these shares.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">As at May 31, 2005, approximately 87%
of the outstanding capital stock of PLDT was registered in the names of
Philippine persons.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779235"></a><a name="_Toc46082295">Related Party Transactions</a></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Companies within the PLDT Group are engaged in
arm's-length transactions in the ordinary course of business.  We believe that
the terms of these transactions are comparable with those available from
unrelated parties.  The following is a discussion of the major agreements with
or between members of the PLDT Group and related parties.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Agreements with NTT Communications and/or its
Affiliates</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">PLDT is a party to the following agreements with NTT
Communications and/or its affiliates:</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Advisory
Services Agreement.   </i>On March 24, 2000, PLDT entered into an agreement with NTT Communications,
as amended on December 31, 2003, under which NTT Communications provides PLDT
with technical, marketing and other consultants for various business areas of
PLDT starting April 1, 2000;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Domestic
Fiber Optic Network Submerged Plant Maintenance Agreement.</i>  On July 4, 2000, PLDT entered into an agreement with NTT World
Engineering Marine Corporation, or NTT WEMC, for the submarine cable repair and
other allied services for the maintenance of PLDT&#146;s DFON submerged plant for a
period of five years up to July 4, 2005.
This agreement has been extended up to
the end of 2005.  Under the agreement, PLDT
shall pay NTT WEMC a fixed annual standing charge of US$2 million, excluding
cost for the use of a remotely operated submersible vehicle at US$5,000 for
every day of use and repair cost computed at US$19,000 per day of actual
repair;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Arcstar
Licensing Agreement and Arcstar Service Provider Agreement.   </i>On March 24, 2000, PLDT entered into an agreement with NTT Worldwide
Telecommunications Corporation under which PLDT markets managed data and other
services under NTT Communications&#146; &#147;Arcstar&#148; brand to its corporate customers
in the Philippines.  PLDT also entered into a
Trade Name and Trademark Agreement with NTT Communications under which PLDT has
been given the right to use the tradename &#147;Arcstar&#148; and its related trademark,
logo and symbols, solely for the purpose of PLDT&#146;s marketing, promotional and
sales activities for the Arcstar services within the Philippines; and</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Conventional
International Telecommunications Services Agreement.</i>  On March 24, 2000, PLDT entered into an agreement with NTT Communications
under which PLDT and NTT Communications agreed to cooperative arrangements for
conventional international telecommunications services to enhance their
respective international businesses.  </p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Total fees under these agreements
amounted to Php336 million, Php288 million and Php289 million for the years
ended December 31, 2004, 2003 and 2002, respectively.  As at December 31, 2004 and
2003, outstanding obligations of PLDT amounted to Php49 million and Php40
million, respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Air Time Purchase Agreement between PLDT and PT Asia Cellular Satellite
and Related Agreements</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">In March 1997, PLDT entered into a Founder NSP Air
Time Purchase Agreement, or ATPA with PT Asia Cellular Satellite, as amended in
December 1998 and as assigned and transferred to AIL, under which PLDT was
granted the exclusive right to sell ACeS services in the Philippines.
In exchange, the Air Time Purchase Agreement required PLDT to purchase from PT
Asia Cellular Satellite at least US$5 million worth of air time annually over
ten years, commencing on January 1, 2002, the date of commercial operations.</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
the event PT Asia Cellular Satellite&#146;s aggregate billing revenue is less than
US$45 million in any given year, the Air Time Purchase Agreement states that
PLDT has to make supplemental air time purchase payments not to exceed US$15
million per year during the ten-year term.</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
believe that the payment obligations under the Air Time Purchase Agreement
exceeded the economic benefits expected to be received under it as a result of
the delay in the launch of the satellite, unavailability of competitive
handsets and competitions from cellular services, occurrence of a partial
satellite loss, changes in the primary business of AIL and other factors
affecting its business.  Accordingly, we started negotiations with AIL for the
revision of the payment obligations under the Air Time Purchase in 2000.  As a
result of these negotiations, the effective date of the Air Time Purchase
Agreement became January 1, 2002.  In 2002, billings for satellite air time were
reduced to actual air time usage, less amount for marketing assistance to
service providers.</p>

<p style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:40.5pt' style="margin-top:0;margin-bottom:0">PLDT
and the other founder NSPs are endeavoring to amend the Air Time Purchase
Agreement due to the occurrence of partial satellite loss, changes in the
primary business of ACeS and other events affecting the business.</p>

<p style='text-indent:40.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">In March 2003, PLDT, together with the other founder
NSPs, entered into a Standstill Agreement with AIL suspending the application
and enforcement of the minimum and supplemental air time payments under the
original Air Time Purchase Agreement.  In lieu of these payments, the parties
agreed that AIL shall provide PLDT and the other founder shareholders, with
unlimited use of air time for the year 2003 in exchange for a fixed fee in the
amount of US$3.8 million for PLDT.  Moreover, PLDT was also obliged to purchase
from AIL 13,750 satellite phone units for the year 2003 at US$395 F.O.B. per
unit, subject to quarterly price adjustment.  The parties to the Standstill
Agreement also agreed to negotiate in good faith and use their best efforts to
reach an agreement on a revised Air Time Purchase Agreement before November 15,
2003 that will cover, among other things, the amended minimum and supplemental
air time payment provisions subject to the approval of AIL&#146;s creditors.</p>

<p style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style="margin-top:0;margin-bottom:0">On February 10, 2004,
notwithstanding the ongoing negotiations, AIL advised PLDT of the termination
of the Standstill Agreement and the reinstatement of the terms under the
original Air Time Purchase Agreement effective January 1, 2002, following the
lapse of the November 15, 2003 deadline
set in the Standstill Agreement for the negotiation of a revised Air Time
Purchase Agreement.  Negotiations are continuing with the relevant parties
towards an amicable settlement of this matter.  </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">As at December 31, 2004 and 2003,
PLDT&#146;s outstanding obligation under the original Air Time Purchase Agreement
was Php2,954 million and Php1,992 million, respectively.  Total fees under this
agreement amounted to Php1,299 million, Php1,919 million and Php50 million for
the years ended December 31, 2004, 2003 and 2002, respectively.  See <i>Note 16 &#150;
Related Party Transactions, </i><i>Note 21 &#150; Contractual Obligations and Commercial
Commitments</i> and <i>Note 22 &#150; Provisions and Contingencies</i> to the
accompanying consolidated financial statements in Item 18 for further details
relating to the Air Time Purchase Agreement with AIL.  </p>

<p style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">PLDT
also entered into a Founder NSP Operating Agreement with PT Asia Cellular
Satellite on March 12, 1997, under which PLDT may:</p>

<p style='line-height:50%' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.75in;text-indent:-.25in;punctuation-wrap:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
authorize
distributors to resell ACeS services in the Philippines upon prior approval from PT Asia Cellular Satellite;
and</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;punctuation-wrap:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
appoint
agents to solicit and bill PLDT&#146;s or its authorized distributors&#146; subscribers
for ACeS services and to sell terminals on behalf of PLDT.</p>

<p style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Under
an Assignment and Assumption Agreement dated December 29, 1998, PT Asia
Cellular Satellite agreed to assign and transfer to AIL all of PT Asia Cellular
Satellite&#146;s rights under the Founder NSP Air Time Purchase Agreement and
Founder NSP Operating Agreement.</p>

<p style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Under
an Acknowledgment of Assignment of the Air Time Purchase Agreement entered into
on December&nbsp;29, 1998, by and among PLDT, P.T. Bank Internasional Indonesia
and AIL, PLDT consented to the assignment by AIL of the Founder NSP Air time
Purchase Agreement to P.T. Bank Internasional Indonesia, as security agent, for
the benefit of the secured parties under the Security Agreement dated December
29, 1998, which was executed in connection with the Amended and Restated Credit
Agreement dated December 29, 1998 among PT Asia Cellular Satellite, AIL, P.T.
Bank Internasional Indonesia and various banks.</p>

<p style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style="margin-top:0;margin-bottom:0">On September 30, 2002, PT Asia
Cellular Satellite, AIL, as guarantor, P.T. Bank International Indonesia, as
security agent, and various other banks signed a Rescheduling Agreement, which
amended the terms of the Amended and Restated Credit Agreement dated December
29, 1998, moving the principal repayment dates to agreed periods with the final
maturity date on January 31, 2012.</p>

<p style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:0in;text-indent:0in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>Agreement between Smart and </i><i>Asia</i><i>
Link B.V</i>.<i>, or ALBV</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Smart
has an existing Technical Assistance Agreement with ALBV for the latter to
provide technical support services and assistance in the operations and
maintenance of cellular business for a period of five years, subject to renewal
upon mutual agreement between the parties.  The agreement provides for
quarterly payments of technical service fees equivalent to 2% of the net
revenues of Smart.  In January 2004, the agreement was amended, reducing the
technical service fees to be paid by Smart to ALBV to 1% of net revenues
effective January 1, 2004.</p>

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Smart also has an existing
Services Agreement with ALBV for a period of 25 years starting January 1, 1999,
which shall automatically expire unless renewed by mutual agreement of both
parties.  Under the agreement, ALBV provides advice and assistance to Smart in
sourcing capital equipment and negotiating with international suppliers,
arranging international financing and other services therein consistent with
and for the furtherance of the objectives of the services.  Services Agreement
fees were paid for the whole 25-year period.</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">ALBV
is a subsidiary of the First Pacific Group.</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-indent:
..5in' style="margin-top:0;margin-bottom:0">Total fees under these agreements amounted
to Php507 million for the year ended December 31, 2004
and Php429 million for each of the years ended December 31, 2003 and 2002.
Outstanding obligations of Smart under the Technical Service Agreement amounted
to Php267 million and Php228 million as at December 31, 2004
and 2003, respectively.</p>

<p style='margin:0in;margin-bottom:.0001pt;text-indent:
..5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:0in' style="margin-top:0;margin-bottom:0"><i>Agreements relating to insurance companies</i></p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Gotuaco del Rosario and Associates, or Gotuaco, acts
as the broker for certain insurance companies to cover certain properties of
the PLDT Group.  Insurance premiums are remitted to Gotuaco and the broker&#146;s
fees are settled between Gotuaco and the insurance companies.  In addition,
PLDT has an insurance policy with Malayan Insurance Co., Inc., or Malayan,
wherein premiums are paid directly to Malayan.  Total insurance expenses paid
under this agreement amounted to Php534 million, Php581 million and Php367
million for the years ended December 31,
 2004, 2003 and 2002, respectively.  Two
directors of PLDT have a direct/indirect interest in or serve as
director/officer of Gotuaco and Malayan.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">There have been no loans between PLDT and any related
party during the period beginning January
 1, 2004 through the date of filing of
this annual report.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Except for the transactions described above, there were no other
material transactions during the last two years, nor are there any material
transactions currently proposed, to which PLDT was or is to be a party, in
which a director or key officer or owner of more than 10% of the common shares
of PLDT, or any member of the immediate family of a director or key officer or
owner of more than 10% of the common shares of PLDT had or is to have a direct
or indirect material interest.  In the ordinary course of business, PLDT has
transactions with other companies in which some of such persons may have an
interest.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">No
director or officer of PLDT or associate of any such director or officer was
indebted to PLDT at any time during the period from January 1, 2004 through the date
of filing of this annual report.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc75779236"></a><a
name="_Toc46082296">Item 8.        Financial
Information</a></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779237"></a><a name="_Toc46082297">Consolidated Statements and Other Financial
Information</a></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Consolidated financial statements are set forth under
&#147;Item 18. Financial Statements.&#148;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779238"></a><a name="_Toc46082298">Legal Proceedings</a></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Except
as disclosed in the following paragraphs, PLDT is not a party to, and none of
its property is subject to, any pending legal proceedings which PLDT considers
to be potentially material to its business.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Victor C. Fernandez</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">On December 9,
 1999, a holder of preferred shares of
PLDT, Victor C. Fernandez, filed a petition against the incumbent directors of
PLDT questioning the validity of the resolutions of the board of directors of
PLDT then authorizing the acquisition of Smart.  Fernandez claimed that he
would suffer injury from dilution of his shares and the possible revocation of
PLDT's franchise in view of the violation of the Philippine Constitution's
foreign equity restrictions if these resolutions were implemented.  Fernandez
also claimed that the approval rights to be granted to NTT Communications in
connection with the Smart acquisition would constitute foreign intervention in
the management and operation of a public utility and that the Smart shares
being acquired by PLDT were overvalued.  The respondent directors denied all
these claims and have articulated their legal arguments in their answer to the
complaint.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Fernandez's
application for a restraining order to enjoin the holding of the PLDT
shareholders' meeting on December 10,
 1999 was denied by the Philippine SEC.
At this meeting, the shareholders approved the resolutions passed by the board
of directors authorizing the acquisition of Smart.  On June 20, 2000,
Fernandez's application for a writ of preliminary injunction was denied.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">In
view of the provisions of R.A. No. 8799 enacted in July 2000, referred to as
the Securities Regulations Code, transferring the jurisdiction of
intra-corporate controversies to the Regional Trial Court, the Philippine SEC
transferred the case to the Regional Trial Court of Manila.  By a motion filed
by the parties, the case was later ordered transferred to the proper venue, the
 Regional Trial Court of Makati City and was raffled to Branch 142 of the Regional
 Trial Court of Makati City (the &#147;Makati Court&#148;).</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">During
the pre-trial hearing, the parties agreed to limit the resolution of the case
to merely issues of law except for the issue on respondent directors&#146;
counterclaims.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
transactions subject of the suit (&#147;Questioned Transactions&#148;) were limited to
PLDT&#146;s acquisition of Smart and NTT&#146;s entry into PLDT and the issues to be
resolved were limited to whether (a) the remaining Questioned Transactions
violate the constitutional limitations on foreign equity in public utilities,
The Foreign Investments Act and the Anti-Dummy Law; (b) the Questioned
Transactions result in a monopoly; and (c) Fernandez is entitled to annul the
Questioned Transactions.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
Makati Court in its decision dated February 21, 2002 (the &#147;Decision&#148;) held that
the Questioned Transactions &#147;resulting from resolutions which have been
approved by PLDT&#146;s shareholders and government regulatory agencies, such as the
NTC and the SEC, are valid and legal&#148; and thus dismissed the petition of
Fernandez.  On April 14, 2003, Fernandez filed with the Supreme Court a petition
for review on certiorari seeking a review of the Decision (the &#147;Petition&#148;).</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Prior
to the scheduled hearing on the counterclaims of the respondent directors,
Fernandez filed on April 29, 2003, a motion for the suspension of the
proceedings pending resolution by the Supreme Court of the Petition (the
&#147;Motion for Suspension&#148;).  The Motion for Suspension was denied by the Makati
 Court and the hearing for the reception of evidence on the respondent
directors&#146; counterclaims was set.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">On
 May 22, 2003, Fernandez filed a motion to refer the Petition to the Supreme
Court <i>En Banc </i>(the<i> &#147;</i>Motion for Referral to SC<i> En Banc</i>&#148;)<i>.
</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Subsequently,
the Supreme Court in a resolution dated June 9, 2003 denied the Petition and in
a resolution dated July 9, 2003, also denied the Motion for Referral to SC <i>En
Banc</i>.  On July 22, 2003, Fernandez filed a motion for reconsideration of
the resolution denying the Petition (the &#147;Motion for Reconsideration&#148;), and in
a manifestation and motion dated August 15, 2003, moved for a reconsideration
of the Resolution denying the Motion for Referral to the SC <i>En Banc</i>.
The respondent directors filed their comment on the Motion for Reconsideration
on December 15, 2003.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">On August 8, 2003, the Makati Court
scheduled the presentation of evidence pertaining to each of the counterclaims
of the respondent directors for moral and exemplary damages.  The respondent
directors no longer testified on their counterclaims during the September 2, 2003
hearing.  On December 4, 2003, Fernandez filed a demurrer to evidence (&#147;demurrer&#148;)
and moved for the dismissal of the respondents&#146; counterclaims, which the
respondent directors opposed.  In an Order dated February 27, 2004, (the
&#147;Order&#148;), the Makati Court granted the Demurrer and dismissed respondent
directors counterclaims for moral and exemplary damages and attorney&#146;s fees
citing the lack of clear and convincing evidence to show malice or bad faith on
the part of Fernandez in respect of the filing of the case.  The respondent
directors filed their motion for reconsideration of the Order.  In a resolution dated June 2, 2004, the Makati Court
denied respondent directors motion for reconsideration. On August 10, 2004,
respondent directors filed a petition for certiorari (docketed as CA-GR SP No.
85630) with the Court of Appeals. The petition seeks to annul and set aside the
Makati Court&#146;s February 27,
 2004 and June 2, 2004 Orders and which
petition remains pending with the Court of Appeals.  </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">In a resolution dated February 2, 2004, the
Supreme Court required Fernandez to file his reply to respondent directors
comments on Fernandez&#146;s Motion for Reconsideration. On February 4, 2004,
Fernandez filed his reply. In a resolution dated November 22, 2004, the Supreme
Court denied with finality Fernandez&#146;s Motion for Reconsideration<i>.</i>  On January 4, 2005,
Fernandez filed with the Supreme Court a second motion for reconsideration with
motion for leave to file and admit second motion for reconsideration of the
Supreme Court&#146;s resolution dated June 9,
 2003 denying Fernandez&#146;s petition. In a
resolution dated January 31, 2005, the Supreme Court denied Fernandez&#146;s second motion
for reconsideration for lack of merit, and noting without action Fernandez&#146;s
motion for leave to file and admit the motion.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Taxation</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">We have made a reasonable estimate of the amount
necessary to pay or settle any contested assessment in the event of an
unfavorable judgment against us and have made the appropriate provisions in our
consolidated financial statements as at December 31, 2004
aggregating Php5,199 million in respect
of the following:</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>NTC supervision and regulation fees, or SRF</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style="margin-top:0;margin-bottom:0">Since 1976, PLDT has received
assessments from NTC for permit, supervision and regulation fees, or SRF, and
other charges pursuant to Section 40 of Commonwealth Act 146, otherwise known
as the Public Service Act.  As at December 31, 2004,
PLDT has paid a total amount of Php1,718 million in SRF, of which Php1,508
million was paid under protest. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">PLDT
is contesting the manner by which these assessments were calculated and the
basis for such calculations.  The case is now with the Supreme Court and upon
the rules and practice of court, now stands submitted for decision.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Smart
and Piltel have similarly received assessments from NTC for permit, SRF and
other charges which were paid under protest.  Total payments amounted to Php122
million each in 2004 and 2003.  Moreover, on February 11, 2005, Piltel paid under protest the amount of Php559 million in respect of NTC fees for the period
from 1992 to 2004.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Local business and franchise tax assesments</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">PLDT is presently a party to several cases involving
the issue of exemption of PLDT from local franchise and business taxes.  PLDT
believes, based on the opinion of its legal counsel, that it is exempt from
payment of local franchise and business taxes.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
Local Government Code of 1991, or R.A. No. 7160, which took effect on January 1, 1992, extended to local government units, or LGUs, the power to tax businesses
within their territorial jurisdiction granted under Batas Pambansa No. 337 and
withdrew tax exemptions previously granted to franchise grantees under Section
12 of R.A. No. 7082.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">PLDT
believes, based on the opinion of its legal counsel, that R.A. No. 7925, which
took effect on March 16, 1995, and the grant of similar local franchise and
business taxes exemption privileges to other franchise holders subsequent to
the effectivity of R.A. No. 7160, implicitly restored its local franchise and
business taxes exemption privilege under Section 12 of R.A. No. 7082, or the
PLDT Franchise, pursuant to Section 23 thereof, or the equality of treatment
clause.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">To
confirm this position, PLDT sought and obtained on June 2, 1998 a ruling from the Bureau of Local Government Finance, or BLGF, of the Philippine Department of
Finance, which ruled that PLDT is exempt from the payment of local franchise
and business taxes imposable by LGUs under R.A. No. 7160.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">By
virtue of the BLGF Ruling, PLDT stopped paying local franchise and business
taxes starting with the fourth quarter of 1998 and has filed with certain LGUs
claims for tax refund covering the period from the second quarter of 1995 to
the third quarter of 1998.  PLDT has received assessments for local franchise
and business taxes from several cities and provinces following PLDT&#146;s decision
to stop payment of local franchise and business taxes.  </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Following a decision of the Supreme Court on March 25, 2003, a judgment in the amount of Php4 million against PLDT involving the City
of Davao became final and executory on April 9, 2003, pursuant to which PLDT
was declared not exempt from the local franchise tax.  Although PLDT believes
that it is not liable to pay local franchise and business taxes, PLDT has
entered into compromise settlements with several LGUs in order to maintain and
preserve its good standing and relationship with these LGUs.  Under these compromise
settlements, which have been approved by the relevant courts, PLDT has paid a
total amount of Php329 million as at December 31, 2004 in full payment for
local franchise tax covering up to the end of 2004.  </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">PLDT continues to contest the remaining assessments
amounting to approximately Php3.7 million as at December 31, 2004, a number of which were based on the gross revenues of PLDT derived from its operations
within the entire Philippines.  PLDT claims that assuming that it is liable for
local franchise tax, R.A. No. 7160 provides that local franchise tax shall be
based on the gross receipts of the preceding year received or collected for
services rendered within the jurisdiction of the taxing authority.  Therefore,
the use by some LGUs of gross revenues as the basis for computation of
franchise tax is in gross violation of the law because it pertains to all
income earned regardless of whether it was received or not, unlike gross
receipts which are essentially the amount of money or its equivalent actually
or constructively received.  Moreover, gross revenues refer to all income
earned by PLDT within and outside the jurisdiction of the local taxing
authority; thus, the use thereof as a basis of computation will exceptionally
overstate the local franchise tax.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">In
a petition recently filed with the Supreme Court involving another LGU, PLDT
has appealed to the Supreme Court for a re-examination of its decision in the
City of Davao case in light of the strong dissenting opinion in that case
concurred in by four other Justices of the Supreme Court.  PLDT currently
expects that going forward it will pay local franchise and business taxes on an
annual basis and based on the gross receipts received or collected for services
rendered within the jurisdiction of the respective taxing authority.  </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Smart has, likewise, received assessments for local
franchise and business taxes from certain cities and provinces in the aggregate
amount of Php313 million, which Smart continues to contest.  Smart believes,
based on the opinion of its legal counsel, that Smart is not liable to pay the
local franchise and business taxes by virtue of <br>
(i) the opinion issued by the BLGF dated August 13, 1998; and (ii) Smart&#146;s
exemption under its legislative franchise which took effect after the effective
date of R.A. No. 7160.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
punctuation-wrap:hanging' style="margin-top:0;margin-bottom:0">Smart has recently been declared exempt from payment
of local franchise tax to the City of Makati in a decision dated August 3, 2004 by the Regional Trial Court of Makati.  The City of Makati has filed their
motion for reconsideration and Smart has filed its opposition to that motion
for reconsideration. </p>

<p style='text-indent:.5in;punctuation-wrap:hanging' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;punctuation-wrap:hanging' style="margin-top:0;margin-bottom:0">Piltel also received assessments from the local
government of the City of Makati in the aggregate amount of Php45 million covering the
period from 1999 to 2001.  Piltel has formally protested the assessments, based
on: (1) Piltel&#146;s belief that the opinion rendered by the BLGF for Smart should
likewise hold true for Piltel; and (2) the effective date of the legislative
franchise of Piltel (R.A. No. 7293) which came after the effectivity of R.A.
No. 7160.  The franchise tax prescribed under Section 137 of the Local
Government Code is deemed part of the Piltel franchise (the later law) which
states, among other things, that Piltel shall pay only a franchise tax
equivalent to 3% of all gross annual receipts of the business transacted under
its franchise and such percentage shall be in lieu of all taxes on the
franchise or earnings thereof.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Piltel&#146;s protest of the assessments was denied by the
City of Makati on December 18, 2001.  Piltel then filed a petition with the
Makati Regional Trial Court, or RTC, appealing the local franchise business
taxes.  On December 10, 2002, the Makati RTC rendered its judgment granting
Piltel&#146;s petition and enjoining the City of Makati from assessing and
collecting any further annual local franchise business taxes from Piltel.  The
City of Makati filed its motion for reconsideration of this judgment with the
Makati RTC, which was subsequently denied.  On April 1, 2003, the City of Makati filed a Petition for Review with the Court of Appeals.  On July 12, 2004, the Court of Appeals rendered a decision upholding the Makati RTC that
Piltel is exempt from payment of the local franchise tax.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
City of Makati appealed to the Supreme Court, which issued a resolution dated October 13, 2004 denying with finality the appeal of the City of Makati on the grounds of
technicality.  The Supreme Court ruled, however, that the petition failed to
sufficiently show that the Court of Appeals committed any reversible error in
the questioned judgment to warrant the exercise of the discretionary appellate
jurisdiction of the Supreme Court.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Piltel&#146;s Bureau of Internal Revenue Assessment</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">In 2003, the<i> </i>BIR issued final assessment
notices, or FANs, against Piltel for deficiency taxes and penalties for taxable
years 1998 and 1999, in the amounts of Php233.6 million and Php284.2 million,
respectively.  Piltel filed protest letters dated June 5, 2003 and September 24, 2003 with the BIR for the 1998 and the 1999 deficiency tax assessments,
respectively.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">With
respect to the 1998 deficiency tax assessment, the BIR denied on March 16, 2003 the administrative protest filed by Piltel.  On July 1, 2003, however,
Piltel filed with the BIR an Application for compromise settlement for the 1998
deficiency tax assessments based on BIR Revenue Regulations, or RR, No. 30-2002
issued on December 16, 2002, which implements Sections 7(c), 204(a) and 290 of
the National Internal Revenue Code of 1997 on compromise settlement of internal
revenue tax liabilities, superseding RR Nos. 6-2000 and 7-2001.  Under said RR
30-2002, Piltel is allowed to apply for compromise settlement on the basis of
financial incapacity.  If approved, Piltel would be permitted to settle its
1998 deficiency tax liabilities by paying an amount corresponding to the
compromise rates ranging from 10% to 40% of its assessed deficiency taxes for
1998.  Meanwhile, with respect to the 1999 deficiency tax assessment, the BIR
favorably considered the administrative protest filed by Piltel.  Accordingly,
the BIR issued a revised FAN dated February 17, 2004, which was received by
Piltel on March 22, 2004.  Hence, as early as December 31, 2003, Piltel paid
and settled the 1999 expanded withholding tax assessment and the revised 1999
fringe benefit tax, or FBT, assessment amounting to Php26.1 million and Php5.6
million, respectively.  On May 28, 2004, Piltel also filed with the BIR an
application for compromise settlement for the 1999 deficiency tax assessments,
particularly the VAT and income tax assessments, similarly based on RR No.
30-2002 on the grounds of financial incapacity.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Moreover, on August 5, 2004, Piltel received a
Preliminary Assessment Notice, or PAN, dated July 19, 2004 in connection with Letter Notice, or LN, BOC-AID/LTS-1-41-01-02.  The said LN, which is similar
to a tax assessment notice, indicated a discrepancy between the importation
date per Bureau of Customs, or BOC, data and the importation per 2001 VAT
returns amounting to Php175.5 million, which resulted in VAT and income tax
deficiency assessments amounting to Php82.4 million and Php26.5 million,
respectively.  On August 20, 2004, Piltel filed an administrative protest in
connection with the assessments.  A supplemental protest letter was also filed
last October 5, 2004 to further support its position against the said tax
assessments after the informal conference held with the examiners last
September 21, 2004.  To date, Piltel has not received any response from the
BIR.  Piltel intends to apply for compromise settlement, based on the same
grounds of financial incapacity, in respect of any resulting deficiency tax
arising from this LN once the BIR has finalized the assessment.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0"><i>U.S.</i><i> Federal
Communications Commission, or FCC, Ruling versus Philippine Telecommunications
Companies</i></p>

<p style="margin-top:0;margin-bottom:0">Effective as at February 1, 2003, PLDT stopped terminating traffic sent directly by each of AT&amp;T and MCI, because PLDT&#146;s
termination rate agreements with AT&amp;T and MCI lapsed in December 2002
without either agreeing with PLDT on any provisional arrangement or final
agreement on new termination rates. In separate orders dated February 7 and 26,
2003, the National Telecommunications Commission, or NTC, confirmed that
&#147;absent any provisional or interim agreement&#148; with U.S. carriers, there would be
no provision of termination services between the parties &#147;who are thereby
encouraged to seek other routes or options to terminate traffic to the
Philippines.&#148; Upon petitions of AT&amp;T and MCI, on March 10, 2003, the
International Bureau of the U.S. FCC issued an Order which directed all
facilities-based carriers subject to U.S. FCC jurisdiction to suspend payments
for termination services to Philippine carriers, including PLDT, Smart and
Subic Telecom, until such time as the U.S. FCC issues a Public Notice that
AT&amp;T&#146;s and MCI&#146;s circuits on the U.S.&#150;Philippine route are fully restored.
The Order also removed the Philippines from the list of U.S.&#150;international
routes approved for the provision of International Simple Resale, or ISR. In
response to the International Bureau&#146;s Order, the NTC issued a Memorandum Order
dated March 12, 2003, directing all affected Philippine carriers &#147;(1) not to
accept terminating traffic via direct circuits from U.S. facilities-based
carriers who do not pay Philippine carriers for services rendered; and (2) to
take all measures necessary to collect payments for services rendered in order
to preserve the viability, efficiency, sustained growth and development and
continued competitiveness of the Philippine telecommunications industry.&#148;</p>

<p style="margin-top:0;margin-bottom:0">On October 17, 2003, based on negotiations
between the NTC and the U.S. FCC to resolve the issue regarding termination
rates, the NTC, in the expectation that the U.S. FCC would fully lift the March
10, 2003 Order, lifted its March 12, 2003 Order and directed all Philippine
carriers to immediately accept terminating traffic via direct circuits from
U.S. facilities-based carriers at mutually acceptable final or interim
termination rates and other terms and conditions agreed upon by the parties.</p>

<p style="margin-top:0;margin-bottom:0">On November 17, 2003, after Smart reached
interim agreements with each of AT&amp;T and MCI on September 30 and November
12, 2003, respectively, the International Bureau of the U.S. FCC lifted its
March 10, 2003 Order with respect to Smart and ordered the U.S. carriers to resume
making payments to Smart.</p>

<p style="margin-top:0;margin-bottom:0">On January 15, 2004, after PLDT reached interim
agreements with each of MCI and AT&amp;T and reopened its circuits with these
carriers on November 12, 2003 and January 9, 2004, respectively, the
International Bureau of the U.S. FCC lifted its March 10, 2003 Order also with
respect to PLDT and ordered the U.S. carriers to resume making payments to
PLDT.</p>

<p style="margin-top:0;margin-bottom:0">On May 13, 2004, the U.S. FCC partially
dismissed and partially denied applications by Philippine carriers, including
PLDT, and certain U.S. carriers for review of the March 10, 2003 Order of the
International Bureau of the U.S. FCC.  In particular, the U.S. FCC affirmed the
 March 10, 2003 Order&#146;s finding that &#147;Philippine carriers engaged in collective
action to &#147;whipsaw&#148; AT&amp;T and MCI.&#148; The U.S. FCC stated, however, that the
findings of the March 10, 2003 Order were not findings under the U.S.
anti-trust laws and that the U.S. Department of Justice independently
&#147;investigating the possibility of anticompetitive practices among Philippine
carriers under its authority pursuant to U.S. anti-trust laws.&#148;  The U.S. FCC
also upheld the March 10, 2003 Order in respect of the suspension of payments
for termination services to the Philippine carriers pending restoration of the
circuits.  In addition, the U.S. FCC denied a request to modify the March 10,
2003 Order of the International Bureau of the U.S. FCC to restore the
Philippines to the list of U.S.-international routes approved for the provision
of ISR.  The U.S. FCC stated that it was dismissing this request as moot
because of the U.S. FCC&#146;s recently adopted International Settlements Policy
Reform Order which eliminated ISR policies.  </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Although
not included in the initial list of countries exempted from the U.S. FCC&#146;s
International Settlements Policy, or ISP, the U.S. FCC identified the
U.S.&#150;Philippines route as eligible for being removed from the ISP in accordance
with its newly established procedures for doing so.  Under this procedure, the
U.S. FCC asked for public comment on the removal of the Philippines from the
ISP.  In comments filed in June and July 2004, removal was reported by several
Philippine and U.S. carriers, including AT&amp;T and MCI, and was opposed by
one U.S. carrier, International Access, Inc.  In November 2004, the U.S. FCC
exempted a number of additional countries from the ISP, but not the Philippines.
Instead, the U.S. FCC stated that it would rule separately regarding the Philippines
after reviewing the issues raised by International Access, Inc.  These issues
are still pending before the U.S. FCC.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">On
July 6, 2004, PLDT filed with the U.S. FCC a petition for reconsideration of
the U.S. FCC&#146;s May 13, 2004 Order on the grounds that the order should have
vacated as moot the International Bureau&#146;s March 10, 2003 Order.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Investigation by U.S. Department of Justice </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In January 2004, PLDT received a grand jury subpoena seeking documents
and a PLDT employee was subpoenaed to testify before the grand jury in
connection with a criminal investigation that was conducted by the U.S.
Department of Justice with respect to alleged antitrust violations relating to
the provision of international termination services in the Philippines.
The U.S. Department of Justice has also requested testimony and documents from Smart in connection with this investigation.
Further, in March 2004, PLDT (US) Ltd., a
subsidiary of PLDT Global, received a grand jury subpoena seeking documents, in
response to which PLDT (U.S.) Ltd. produced documents.  In February 2005, two former employees of PLDT U.S. Ltd.
testified before the grand jury in the U.S. Department
of Justice matter. A PLDT employee was
also scheduled to reappear for testimony in February, but his appearance has
been postponed.  On May 11, 2005, the
U.S. Department of Justice informed our legal counsel in Washington, D.C.,
Covington &amp; Burling, that the U.S. Department of Justice has terminated its
antitrust investigation relating to termination rate increases implemented in
early 2003 by certain Philippine long distance carriers including PLDT and that
no enforcement action will be taken.  See <i>Note 25 &#150; Other Matters(e)</i> to the accompanying
consolidated financial statements in Item 18.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0"><a name="_Toc75779239"></a><a
name="_DV_M2"></a><a name="_DV_M3"></a><a name="_DV_M4"></a><a name="_DV_M5"></a><a
name="_DV_M6"></a><a name="_DV_M7"></a><a name="_DV_M8"></a><a name="_DV_M9"></a><a
name="_DV_M10"></a><a name="_DV_M11"></a><a name="_DV_M12"></a><a name="_DV_M13"></a><a
name="_DV_M14"></a><a name="_DV_M15"></a><a name="_DV_M16"></a>Dividend Distribution Policy</p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">In
2004 and 2003, PLDT declared cash dividends of Php1,529 million and Php1,497 million,
respectively, solely for its preferred shareholders.  The most recent cash
dividend declaration made by PLDT on its common stock was on May 5, 2005 at Php21 per common share to holders of record as at June 3, 2005 payable on July 14, 2005.  On March 1, 2005, PLDT declared a cash dividend at Php14 per
common share to holders of record as at March 31, 2005 which was paid on May 12, 2005.  This was the first cash dividend declaration to common shareholders since
March 2001.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
current policy of PLDT is to thoroughly analyze its ability to declare and pay
dividends, regularly taking into consideration the interests of its
shareholders as well as PLDT&#146;s working capital, capital expenditure and debt
service requirements.  PLDT also takes into account the prohibitions and
restrictions under certain of its debt instruments with respect to the
declaration and payment of dividends as discussed in &#147;Item 5. Operating and
Financial Review and Prospects &#151; Liquidity and Capital Resources &#151; Financing
Activities &#151; Debt Financing &#151; Covenants&#148;, &#147;Item 10. Additional Information &#151;
Articles of Incorporation and By-Laws &#151; Dividends&#148; and in <i>Note 14 &#150;
Preferred Stock Subject to Mandatory Redemption</i> and <i>Note 15 &#150;
Stockholders&#146; Equity</i> to the accompanying consolidated financial statements
in Item 18.  The retention of earnings is still necessary to meet the funding
requirements of our business expansion, service improvement and development
programs.  Except for dividends on PLDT's Series III and Series VI Convertible
Preferred Stock, which are payable in U.S. dollars, and PLDT's Series VII
Convertible Preferred Stock, which are payable in Japanese yen, dividends are
generally paid in Philippine peso.  In the case of shareholders residing
outside the Philippines, PLDT's transfer agent in Manila, which
acts as the dividend disbursing agent, converts the peso dividends into U.S.
dollars at the prevailing exchange rates, and remits the dollar proceeds
abroad, net of withholding tax.</p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc75779240"></a><a
name="_Toc46082300">Item 9.        The Offer and
Listing</a></p>

<p style='line-height:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779241"></a><a name="_Toc46082301">Common Capital Stock and American
Depositary Receipts (&#147;ADRs&#148;)</a></p>

<p style='text-indent:0in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
common shares of PLDT are listed and traded on the PSE, and prior to October
19, 1994, were listed and traded on the American Stock Exchange and Archipelago
Exchange in the United States.  On October 19, 1994,
an ADR facility was established, pursuant to which Citibank, N.A., as the
depositary, issued ADRs evidencing ADSs, with each ADS representing one PLDT
common share with a par value of Php5 per share.  Effective February 10, 2003,
PLDT appointed JP Morgan Chase Bank as successor depositary of PLDT&#146;s ADR
facility.  The facility was established in accordance with a Common Stock
Deposit Agreement dated October 19, 1994, as amended on February 10, 2003
between the Depositary and the holders of the ADRs.  The ADSs have been listed
and are traded on the New York Stock Exchange, or NYSE, and the Archipelago
Exchange in the United States under the symbol &#147;PHI&#148; for both exchanges.  </p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">In 2004, a total of 39 million shares of PLDT's common
stock were traded on the PSE.  During the same year, the volume of trading was
49.6 million ADSs on the NYSE but none on the Archipelago Exchange.</p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">As at May 31,
 2005, there were 12,127 shareholders of
record who are Philippine persons and held approximately 40% of PLDT&#146;s common
stock.  As at December 31, 2004, there were 12,444 shareholders of record who are
Philippine persons and held approximately 43% of PLDT&#146;s common stock.  In
addition, there were a total of 25 million and 28 million ADSs outstanding,
substantially all of which PLDT believes were held in the United States
by 410 holders and 414 holders as at May 31, 2005
and December 31, 2004, respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">High
and low sales prices for PLDT's common shares on the PSE and ADSs on the NYSE
for each of the five most recent fiscal years, each full quarterly period
during the two most recent fiscal years, and each month in the most recent six
months were as follows:</p>

<p style='line-height:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:93.46%;border-collapse:collapse'>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>PSE</b></p>
 </div>
 </td>
 <td   colspan=4 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>NYSE</b>(1)</p>
 </div>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.7pt'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:11.7pt'>
 <p align=center style='margin-bottom:6.0pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:11.7pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-bottom:6.0pt;text-align:center;
 page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>High</b></p>
 </div>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:11.7pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-bottom:6.0pt;text-align:center;
 page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Low</b></p>
 </div>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:11.7pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-bottom:6.0pt;text-align:center;
 page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>High</b></p>
 </div>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:11.7pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-bottom:6.0pt;text-align:center;
 page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Low</b></p>
 </div>
 </td>
 </tr>

 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2000</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php 1,100.00</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php 660.00</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$28</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">1/4</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$14</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">7/8</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2001(1)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,060.00</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">332.50</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">20.75</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">6.55</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">565.00</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">209.00</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">11.30</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">3.85</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">990.00</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">265.00</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">17.79</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">4.85</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">First Quarter</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">337.50</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">265.00</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">6.18</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">4.85</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:27.0pt;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Second Quarter</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">565.00</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">312.50</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">11.15</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">5.80</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:27.0pt;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Third Quarter</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">670.00</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">482.50</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">12.48</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">8.78</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:27.0pt;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Fourth Quarter</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">990.00</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">635.00</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">17.79</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">11.70</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2004</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,505.00</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">810.00</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">27.03</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">14.38</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:27.0pt;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">First Quarter</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,050.00</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">810.00</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">18.60</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">14.38</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:27.0pt;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Second Quarter</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,165.00</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">960.00</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">21.20</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">16.97</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:27.0pt;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Third Quarter</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,450.00</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,150.00</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">25.72</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">20.90</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Fourth Quarter</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,505.00</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,215.00</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">27.03</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">21.83</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">December </p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,380.00</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,215.00</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">25.03</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">21.83</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:27.0pt;text-indent:-27.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">2005</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:27.0pt;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">First Quarter</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,495.00</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,310.00</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">27.75</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">23.50</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:27.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">January</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,460.00</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,310.00</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">26.34</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">23.50</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:27.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">February</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,440.00</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,350.00</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">26.45</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">24.64</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:27.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">March</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,495.00</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,350.00</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">27.75</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">25.05</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:27.0pt;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Second Quarter </p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:27.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">April</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,425.00</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,330.00</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">26.01</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">24.10</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:27.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">May</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,500.00</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,400.00</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">27.45</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">25.63</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
</table></center></div>

<p style='page-break-after:avoid;border:none' style="margin-top:0;margin-bottom:0">_____________</p>

<p style='line-height:50%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>(1)</i>   <i>Effective
</i><i>January 29, 2001</i><i>, PLDT converted from fractional to the decimal system
of pricing in compliance with the new trading standard required by the U.S.
SEC.</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779242"></a><a name="_Toc46082302">Series III Convertible Preferred Stock and
Global Depositary Receipts (&#147;GDRs&#148;)</a></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">On November 29,
 1994 and on December 12, 1994, PLDT issued an
aggregate of approximately 4.6 million shares of Series III Convertible
Preferred Stock, with a par value of Php10 per share.  In connection therewith,
a GDR facility was established, pursuant to which Citibank N.A., as Depositary,
issued GDRs evidencing Global Depositary Shares, or GDS, with each GDS
representing one share of Series III Convertible Preferred Stock of PLDT.  Each
share is convertible into shares of common stock at the option of the holder at
any time, at the conversion price of US$29.19 per share of common stock
(equivalent to a conversion ratio of 1.7129 shares of common stock for each
share of Series III Convertible Preferred Stock, each share of Series III
Convertible Preferred Stock being valued for this purpose at its reference
amount of US$50 per share), subject to adjustment in certain events, and are
not redeemable.  Moreover, PLDT may require the mandatory conversion of some or
all of the outstanding shares of Series III Convertible Preferred Stock into
shares of common stock at the above conversion price of US$29.19 per share of
common stock, if certain conditions are met.  For further details, see &#147;Item
10.  Additional information &#150; Articles of Incorporation and By-Laws &#150; Preferred
Stock&#148;.  Effective February 10, 2003, PLDT appointed JP Morgan Chase Bank as successor
depositary of PLDT&#146;s GDRs.  The facility was established in accordance with a
Preferred Stock Deposit Agreement dated November 29, 1994,
as amended on September 6, 1999 and February
 10, 2003 between the Depositary and the
holders of the GDRs.  The GDSs have been listed and are traded on the New York
Stock Exchange and the Archipelago Exchange in the United States under the
symbols &#147;PHI Pra&#148; and &#147;PHI-A&#148;, respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">High
and low sales prices for the series III convertible preferred shares and the
GDSs for each of the five most recent fiscal years, each full quarterly period
during the two most recent fiscal years, and each month in the most recent six
months were as follows:</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:94.18%;border-collapse:collapse;border-collapse:collapse !msorm'>

 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=5 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>NYSE</b>(1)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>High</b></p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Low</b></p>
 </td>
 </tr>

 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2000 </p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$50</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">1/2</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$31</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">1/4</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2001(1)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">39.875</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">16.000</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2002 </p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">26.000</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">13.000</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">47.600</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">20.500</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='text-indent:.25in' style="margin-top:0;margin-bottom:0">First
 Quarter</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">25.750</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">20.500</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='text-indent:.25in' style="margin-top:0;margin-bottom:0">Second
 Quarter</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">37.750</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">25.650</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Third
 Quarter</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">40.900</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">34.300</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Fourth
 Quarter</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">47.600</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">40.200</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">2004</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">US$50.850</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">US$42.500</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">First
 Quarter </p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">49.500</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">45.600</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:35.1pt;text-indent:-17.1pt' style="margin-top:0;margin-bottom:0">Second Quarter</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">48.250</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">42.500</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:35.1pt;text-indent:-17.1pt' style="margin-top:0;margin-bottom:0">Third Quarter</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">50.030</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">46.050</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Fourth
 Quarter </p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">50.850</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">46.850</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='text-indent:27.0pt' style="margin-top:0;margin-bottom:0">December</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">49.950</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">47.500</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">2005 </p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">First
 Quarter</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">US$51.000</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">US$48.900</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:.25in;text-indent:9.0pt' style="margin-top:0;margin-bottom:0">January</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">51.000</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">49.150</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:.25in;text-indent:9.0pt' style="margin-top:0;margin-bottom:0">February</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">50.950</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">49.500</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:.25in;text-indent:9.0pt' style="margin-top:0;margin-bottom:0">March</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">50.750</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">48.900</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Second
 Quarter</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:.25in;text-indent:9.0pt' style="margin-top:0;margin-bottom:0">April</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">US$49.250</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">US$48.000</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:.25in;text-indent:9.0pt' style="margin-top:0;margin-bottom:0">May</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">49.140</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">48.000</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
</table></center></div>

<p style='border:none' style="margin-top:0;margin-bottom:0">_____________</p>

<p style='line-height:50%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i>(1)   Effective </i><i>January 29, 2001</i><i>, PLDT converted from fractional to the decimal system of pricing in
compliance with the new trading standard required by the U.S. SEC.</i></p>

<p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As
at December 31, 2004, there were approximately 4.6 million GDSs
outstanding, which PLDT believes were substantially held in the United States.</p>

<p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc75779243"></a><a
name="_Toc46082303">Item 10.     Additional
Information</a></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779244"></a><a name="_Toc46082304">Articles of Incorporation and By-Laws</a></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following summarizes certain provisions of PLDT's
Articles of Incorporation and By-Laws and applicable Philippine law.  This
summary is qualified in its entirety by reference to the Corporation Code of
the Philippines (the &#147;Corporation Code&#148;) and PLDT's Articles of
Incorporation and By-Laws.  Information on where investors can obtain copies of
the Articles of Association and By-Laws is described under the heading
&#147;Documents Available.&#148;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i>Purpose of PLDT</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">PLDT's
Articles of Incorporation have been filed with the Philippine SEC and PLDT has
been issued Philippine SEC Reg. No. 55.  The Second Article of PLDT's Articles
of Incorporation provides that the purposes for which PLDT was formed are to
install, maintain, and operate any and all kinds of equipment for
communications; to install, maintain, operate or lease telephone lines and
systems, and to purchase, sell and deal in all kinds of products which may be
combined with the building, installing and operation of those systems and lines
and in general, to engage in any and all acts and business which may be
necessary or convenient, in the furtherance of such lines of communication and
business.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Directors</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">PLDT's Amended By-Laws provide that the Board of
Directors shall consist of thirteen members, each of whom must hold at least
one share of stock of PLDT in his own name and possess the minimum
qualifications and have none of the disqualifications provided in the By-Laws.
There are no provisions in PLDT's Amended Articles of Incorporation or Amended
By-laws with respect to (a) a director's power to vote on a proposal,
arrangement or contract in which the director is materially interested; (b) the
directors' power, in the absence of an independent quorum, to vote compensation
to themselves or any members of their body; (c) borrowing powers exercisable by
the directors and how such borrowing powers can be varied; or (d) retirement or
non-retirement of directors under an age limit requirement.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Description
of PLDT Capital Stock</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Authorized Capital Stock</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The
authorized capital stock of PLDT is Php9,395 million divided into two classes
consisting of 234 million shares of Common Capital Stock with a par value of
Php5 per share (the &#147;Common Stock&#148;) and 822.5 million shares of serial
Preferred Stock with a par value of Php10 per share (the &#147;Preferred Stock&#148;).</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i>Common Stock</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Set
out below is a statement of the dividend, voting, pre-emption and other rights
of the holders of Common Stock as set out in the Articles of Incorporation
and/or By-Laws of PLDT:</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">(a)&nbsp;&nbsp;&nbsp;&nbsp;
After the requirements with
respect to preferential dividends on the serial Preferred Stock shall have been
met and after PLDT shall have complied with all the requirements, if any, with
respect to the setting aside of sums as purchase, retirement or sinking funds,
the holders of the Common Stock shall be entitled to receive such dividends as
may be declared from time to time by the Board of Directors out of funds
legally available therefor.</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">(b)&nbsp;&nbsp;&nbsp;&nbsp;
After distribution in full of the
preferential amounts to be distributed to the holders of serial Preferred Stock
in the event of the voluntary or involuntary liquidation, dissolution,
distribution of assets or winding up of PLDT, the holders of Common Stock shall
be entitled to receive all the remaining assets of PLDT of whatever kind
available for distribution to stockholders ratably in proportion to the number
of Common Stock held by them, respectively.</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">(c)&nbsp;&nbsp;&nbsp;&nbsp;
Except as may be otherwise
required by law, or by the Articles of Incorporation of PLDT, each holder of
Common Stock shall have one vote in respect of each share of such stock held by
him on all matters to be voted upon by the stockholders, and the holders of
Common Stock shall have the exclusive right to vote for the election of
directors and for all other purposes.  At every election of directors, a holder
of Common Stock is entitled to vote such shares of Common Stock held by him for
as many persons as there are directors to be elected, or to cumulate said shares
and give one candidate as many votes as the number of directors to be elected
multiplied by the number of his shares shall equal, or to distribute such votes
on the same principle among as many candidates as he shall think fit.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">In
addition to the foregoing rights, the Corporation Code provides for other
stockholders' rights generally.  These include:</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">(a)&nbsp;&nbsp;&nbsp;&nbsp;
Appraisal right or the right of a
dissenting stockholder to demand payment of the fair value of his shares of
stock in the following instances:  (a) in case any amendment to the articles of
incorporation has the effect of changing or restricting the rights of any
stockholders or class of shares, or of authorizing preferences in any respect
superior to those of outstanding shares of any class, or of extending or
shortening the term of corporate existence; (b) in case of sale, lease,
exchange, transfer, mortgage, pledge or other disposition of all or
substantially all of the corporate property and assets of the corporation; and
(c) in case of merger or consolidation.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">(b)&nbsp;&nbsp;&nbsp;&nbsp;
The right to approve certain
corporate acts, such as:  (a) election of directors; (b) removal of directors;
(c) extension or shortening of the corporate term; (d) increase or decrease of
capital stock, and incurring, creating or increasing bonded indebtedness; (e)
sale or other disposition of all or substantially all of the corporate assets;
(f) investment of corporate funds in any other corporation or business or for
any purpose other than the primary purpose for which it was organized; (g)
declaration of stock dividend; (h) entering into a management contract with
another corporation; (i) plan of merger or consolidation; and (j) voluntary
dissolution of the corporation by shortening the corporate term.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">(c)&nbsp;&nbsp;&nbsp;&nbsp;
The right to inspect at reasonable
hours on business days the records of all business transactions of the
corporation and the minutes of any meeting; however, the stockholders' right to
inspect corporate records and books is not an absolute right so that the
corporation may deny said right on the basis of impropriety of the purpose or
motive of the stockholder.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">(d)&nbsp;&nbsp;&nbsp;&nbsp;
The right to be furnished the most
recent financial statements of the corporation, within ten days from receipt by
the corporation of a written request from a stockholder.  The same right exists
at the annual meeting of stockholders at which the Board of Directors must
present to the stockholders a financial report of the operations of the
corporation for the preceding year which shall include financial statements
duly signed and certified by an independent certified public accountant.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Restrictions on Foreign Ownership</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The Constitution of the Republic of the Philippines
(Section 11, Article XII) states that no franchise, certificate, or any other
form of authorization for the operation of a public utility shall be granted
except to citizens of the Philippines or to corporations or associations
organized under the laws of the Philippines at least 60% of whose capital is
owned by such citizens.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">While
the Articles of Incorporation and By-Laws of PLDT do not contain any specific
restriction on the sale, assignment or transfer of shares that would violate
the aforecited ownership requirement, the Articles of Incorporation of PLDT
provide that the Board of Directors shall have full power and authority to
authorize (whether by adoption of amendments to the By-Laws of PLDT or of
resolutions, the promulgation of rules or regulations or otherwise) the taking
by said corporation of all such actions as the Board of Directors may deem
necessary or appropriate to ensure compliance by said corporation with any
applicable provision of the Constitution of the Republic of the Philippines or
any other applicable law, treaty, rule or regulation relating to the ownership
of securities of said corporation by citizens of the Philippines, aliens or
other persons or group of persons.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>Meetings</i></p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
Corporation Code requires corporations to hold an annual meeting of
stockholders and to send notice thereof to stockholders.  Under PLDT's By-Laws,
the annual meeting of stockholders shall be held at the principal office of the
corporation, or at such other place designated by the Board of Directors in the
city or municipality where the principal office of the corporation is located,
on the second Tuesday in June of each year.  In the annual meeting, the Board
of Directors shall be elected and such other business may be transacted as
shall come before the meeting.  At least fifteen (15) business days written or
printed notice of the date, time and place of holding every annual stockholders'
meeting shall be given by the Secretary or by an Assistant Secretary by
personal delivery or by mail to each stockholder at his or her last known place
of residence or business.  Special meetings of stockholders may be called at
any time by the President or three (3) of the Directors or by a number of
stockholders representing two-thirds (2/3) of the subscribed capital stock.
Notice in writing of such meeting stating the date, time or place thereof,
shall be given to each stockholder by the Secretary or Assistant Secretary or,
in case of his absence, inability, refusal or neglect to act, then by the
President, Directors or stockholders calling said meeting, by personal delivery
or by mail to each stockholder at his or her last known place of residence, at
least fifteen (15) business days before the date fixed for the meeting.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
By-Laws of PLDT provide that each share of common stock which has voting rights
on any matter under consideration may be represented at any meeting of
stockholders by the holder thereof or by his attorney duly authorized by proxy
in writing on forms prescribed by the Board of Directors which shall be
furnished to a stockholder upon his request.  Unless otherwise provided in the
proxy, it shall be valid only for the meeting in respect of which such proxy
was issued.  Proxies must be filed with the Secretary, Assistant Secretary or
transfer agent of PLDT at least two (2) days before the day of the meeting.
Any proxy filed with the Secretary, Assistant Secretary or transfer agent of
the corporation may be revoked by the stockholder concerned either in an
instrument in writing duly presented to the Secretary, Assistant Secretary or
transfer agent of the corporation at least two (2) days before the day of the
meeting or by his personal presence at the meeting.  The decision of the
Secretary on the validity of proxies shall be final and binding until and
unless set aside by a court of competent jurisdiction.  As provided in the
Corporation Code, unless otherwise provided in the proxy, it shall be valid
only for the meeting for which it is intended and no proxy shall be valid and
effective for a period longer than five (5) years at any one time.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
By-Laws of PLDT also provide that at any meeting of the stockholders, persons
representing, in person or by proxy, a majority of the shares issued and
outstanding and entitled to vote at said meeting shall constitute a quorum for
the transaction of any business, except as otherwise provided by law, and
except that a lesser number may adjourn the meeting.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>Issues
of Shares</i></p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
Board of Directors of PLDT has the power to authorize the issue and sale of
authorized but unissued shares of Common Stock of said corporation for such
consideration as it shall determine, provided that such consideration shall not
be less than the par value of such shares and, provided further, that such
issue and sale is not otherwise prohibited under applicable laws.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Under
the Securities Regulation Code of the Philippines (R.A. No. 8799), or SRC, no
securities except of a class exempt under the provisions thereof or unless sold
in any transaction exempt under any of the provisions thereof, shall be sold or
offered for sale or distribution to the public unless such securities shall
have been registered and permitted to be sold pursuant to the SRC.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Transfer of Shares</i></p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The shares of Common Stock may be transferred by
delivery of certificate(s) endorsed by the shareholder named in the certificate
or his duly authorized attorney or representative.  No transfer, however, shall
be valid, except as between the parties, until the transfer is recorded in the
stock and transfer books of PLDT maintained by Hongkong and Shanghai Banking
Corporation, the stock transfer agent of PLDT for the Common Stock.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Philippine
law does not require transfers of Common Stock to be effected on PSE, but any
off-exchange transfers will subject the transferor to a capital gains tax that
may be significantly greater than the stock transfer tax applicable to
transfers effected on the PSE.  All transfers of shares of Common Stock on the
PSE must be effected through a licensed broker in the Philippines.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Share Certificates</i></p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Certificates representing fully paid shares of Common
Stock are issued in such denominations as stockholders may request, except that
certificates will not be issued for any fractional part of a share or any
undivided interest in any share.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Dividends</i></p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Under the Corporation Code, the Board of Directors may
declare dividends on the Common Stock out of the unrestricted retained earnings
which may be payable in cash, in property or in stock to all stockholders on
the basis of outstanding shares held by them.  The declaration of stock
dividends requires the approval of the stockholders of PLDT representing not
less than two-thirds of the outstanding capital stock of PLDT.  If a stock
dividend would require an increase in the authorized capital stock, Philippine
SEC approval would be required.  Common Stock issued as stock dividends should
be registered with and licensed by the Philippine SEC and listed on the PSE.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The Corporation Code requires a
Philippine corporation with retained earnings in excess of 100% of its paid-in
capital to declare and distribute as dividends the amount of such surplus.
Notwithstanding this general requirement, a Philippine corporation may retain
all or any portion of such surplus in the following cases:  (i) when justified
by definite corporate expansion projects or programs approved by the board of
directors; or (ii) when the corporation is prohibited under any loan agreement
with any financial institution or creditor, whether local or foreign, from
declaring dividends without its/his consent, and such consent has not yet been
secured; or (iii) when it can be clearly shown that such retention is necessary
under special circumstances relevant to the corporation, such as when there is
a need for special reserve for probable contingencies.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">PLDT
has entered into certain loan and credit agreements, which restrict the
declaration and payment of dividends by PLDT.  In particular, under the terms
of PLDT's JPY5,615 million syndicated
term loan facility agreement, PLDT is restricted from distributing dividends to
common stockholders unless (i) no default has occurred which is continuing, and
(ii) its debt to free cash flow ratio, after giving effect to the distribution
of such dividends and, under certain circumstances, other adjustments to PLDT&#146;s
closing cash balance, would be less than 4.0:1.  Under other loan agreements,
PLDT may not declare or pay dividends on any of its capital stock without the
prior written consent of the lenders (i) if PLDT is in default in the payment
of any amounts due and payable under such loan agreement or after the
occurrence and during the continuance of any other event of default or potential
event of default under such agreements, (ii) if after giving effect to such
action the current ratio would be less than 1.2:1 or (iii) in an amount greater
than PLDT&#146;s net income after taxes during the fiscal year to which such payment
or distribution relates.  For the year 2001, PLDT declared cash dividends on
outstanding shares of Common Stock in the amount of approximately Php202
million.  The most recent cash dividend declaration made by PLDT on its shares
of common stock was on March 1, 2005, which was paid on May 12, 2005 at Php14 per common
share to holders of record as at March
 31, 2005.  This is the first cash
dividend declaration to common shareholders in four years since March 2001.  On
May 5, 2005, PLDT declared another cash dividend of Php21 per share of common
stock payable on July 14, 2005 to holders of record as at June 3, 2005.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i>Preferred Stock</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Preferred Stock may be issued
from time to time in one or more series as the Board of Directors may
determine.  The Board of Directors is authorized to establish and designate the
title and number of shares of each series and to fix the terms thereof,
including dividend rate, redemption and sinking fund provisions, conversion
rights and the amount to be received upon liquidation, provided that the
amounts payable upon redemption or liquidation may not be more than 110%, nor
less than 100%, of par value, plus in each such case accrued and unpaid
dividends.  Except as otherwise provided by law, the holders of Preferred Stock
are not entitled to vote for the election of directors or for any other
purpose; provided, however, that PLDT may not change the rights of the holders
of any series of Preferred Stock in any manner prejudicial to the holders
thereof without the affirmative vote of the holders of a majority of the shares
of such series.  No such approval is needed to increase the number of shares of
Preferred Stock (up to the number from time to time authorized by the Articles)
or to authorize classes of shares ranking on a parity with the Preferred Stock.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Issued and Outstanding Preferred Stock</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The series of Preferred Stock and the number of shares
issued and outstanding under each series as at May 31, 2005 are as follows:<b> </b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:95.3%;border-collapse:collapse;width:95.3% !msorm;border-collapse:
 collapse !msorm'>
 <tr style='height:.2in' style='height:.2in !msorm'>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.2in'>
 <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:
 6.0pt;margin-left:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>Series</u></b></p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:.2in'>
 <p align=center style='margin-top:6.0pt;margin-right:0in;
 margin-bottom:6.0pt;margin-left:0in;text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>No. of Shares</u></b></p>
 </td>
 </tr>
 <tr style='height:.2in' style='height:.2in !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:.2in'>
 <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
 margin-left:0in;line-height:normal' style="margin-top:0;margin-bottom:0">Series
 A to EE 10% Cumulative Convertible</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:.2in'>
 <p align=right style='margin-top:6.0pt;margin-right:.5in;
 margin-bottom:6.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">408,353,953</p>
 </td>
 </tr>
 <tr style='height:.2in' style='height:.2in !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:.2in'>
 <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
 margin-left:0in;line-height:normal' style="margin-top:0;margin-bottom:0">Series
 III Convertible</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:.2in'>
 <p align=right style='margin-top:6.0pt;margin-right:.5in;
 margin-bottom:6.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">4,616,200</p>
 </td>
 </tr>
 <tr style='height:.2in' style='height:.2in !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:.2in'>
 <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:
 6.0pt;margin-left:0in' style="margin-top:0;margin-bottom:0">Series IV Cumulative
 Non-Convertible Redeemable</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:.2in'>
 <p align=right style='margin-top:6.0pt;margin-right:.5in;
 margin-bottom:6.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">36,000,000</p>
 </td>
 </tr>
 <tr style='height:.2in' style='height:.2in !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:.2in'>
 <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
 margin-left:0in;line-height:normal' style="margin-top:0;margin-bottom:0">Series
 V Cumulative Convertible Redeemable</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:.2in'>
 <p align=right style='margin-top:6.0pt;margin-right:.5in;
 margin-bottom:6.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">1,941,922</p>
 </td>
 </tr>
 <tr style='height:.2in' style='height:.2in !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:.2in'>
 <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:
 6.0pt;margin-left:0in' style="margin-top:0;margin-bottom:0">Series VI Cumulative
 Convertible Redeemable</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:.2in'>
 <p align=right style='margin-top:6.0pt;margin-right:.5in;
 margin-bottom:6.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">4,704,495</p>
 </td>
 </tr>
 <tr style='height:.2in' style='height:.2in !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:.2in'>
 <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:
 6.0pt;margin-left:0in' style="margin-top:0;margin-bottom:0">Series VII Cumulative
 Convertible Redeemable</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:.2in'>
 <p align=right style='margin-top:6.0pt;margin-right:.5in;
 margin-bottom:6.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">3,842,000</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
Series A to EE 10% Cumulative Convertible Preferred Stock are entitled to
receive cumulative dividends at the rate of 10% per annum; redeemable at the
option of PLDT, at par value plus accrued dividends, five years after the year
of issuance; convertible to shares of Common Stock a year after the year of
share issuance, at a price equivalent to 10% below the average market price of
the Common Stock at the PSE over a period of 30 consecutive trading days before
the conversion date; and entitled to be paid an amount equal to the par value
of the shares plus accrued and unpaid dividends thereon to the date fixed for
such payment in the event of a voluntary or involuntary liquidation,
dissolution, distribution of assets or winding up of the affairs of the
corporation.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
Series III Convertible Preferred Stock are entitled to receive annual fixed
cumulative dividends of US$3.50 per share; in the event of any voluntary or
involuntary liquidation, dissolution or winding up of PLDT, are entitled to
receive out of the assets of PLDT available for distribution to the
stockholders of PLDT, before any distribution of assets is made to holders of
shares of Common Stock or any other shares of stock of PLDT ranking as to such
a distribution junior to the Series III Convertible Preferred Stock,
liquidating distributions in the amount of Php11 per share plus accrued and
unpaid dividends; are convertible into shares of Common Stock at the holder's
option at any time, at the conversion price of US$29.19 per share of Common
Stock (equivalent to a conversion ratio of 1.7129 shares of Common Stock for
each share of Series III Convertible Preferred Stock, each share of Series III
Convertible Preferred Stock being valued for this purpose at its reference
amount of US$50 per share), subject to adjustment in certain events; and are
not redeemable.  Moreover, PLDT may require the mandatory conversion of some or
all of the outstanding shares of Series III Convertible Preferred Stock into
shares of common stock at the above conversion price of US$29.19 per share of
common stock, if certain conditions are met, including that (i) the average of
the closing prices of the ADSs reported on the NYSE on each trading day during
the period of 30 days ending on the seventh day prior to the date upon which
notice of the date of mandatory conversion is first given is greater than or
equal to the conversion price in effect on such seventh day, (ii) there are no
dividends in arrears on any shares of the Series III Convertible Preferred
Stock, and  (iii) PLDT has sufficient distributable reserves to pay the fixed
preferential dividends on the shares of Series III Convertible Preferred Stock,
calculated down to and including the mandatory conversion date.  Upon
liquidation of PLDT, holders of the Series III Convertible Preferred Stock will
be entitled to receive liquidating distributions equivalent to Php11 per share,
plus accrued and unpaid dividends to the date of distribution, subject to the
prior rights of creditors. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
Series IV Cumulative Non-Convertible Redeemable Preferred Stock are entitled to
receive cumulative dividends at the rate of 13.5% per annum based on the
paid-up subscription price.  It is redeemable at the option of PLDT one year at
any time after subscription at an amount equal to the par value of such shares
so redeemed or if such shares are not yet fully paid, the actual amount paid,
plus accrued and unpaid dividends thereon; and in the event of a voluntary or
involuntary liquidation, dissolution or winding up of affairs of PLDT, shall be
entitled to be paid an amount equal to the par value of such shares or if such
shares are not yet fully paid, the actual amount paid, plus an amount equal to
the dividends accrued thereon to the date fixed for payment.  The outstanding
shares of Series IV Cumulative Non-Convertible Redeemable Preferred Stock have
not been fully paid.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Shares
of Series V, VI and VII Convertible Preferred Stock are entitled to receive
annual dividends of Php18.70 per share, US$0.397 per share and JPY40.7189 per share, respectively.  Each share of
Series V, VI and VII PLDT Convertible Preferred Stock is convertible at any
time at the option of the holder into one share of PLDT Common Stock.  In the
event of any voluntary or involuntary liquidation, dissolution or winding up of
PLDT, the holders of the Series V, VI and VII Convertible Preferred Stock are
entitled to receive out of the assets of PLDT available for distribution to the
shareholders of PLDT, before any distribution of assets is made to holders of
shares of Common Stock or any other shares of stock of PLDT ranking as to such
distribution junior to the Series V, VI and VII Convertible Preferred Stock,
liquidating distributions in the amount of Php11 per share plus accrued and
unpaid dividends.  On the date immediately following the seventh anniversary of
the issue date of the Series V and Series VI Convertible Preferred Stock and on
the eighth anniversary of the issue date of the Series VII Convertible
Preferred Stock, the remaining outstanding shares under these series will be
mandatorily converted into shares of PLDT Common Stock at a conversion rate of
one share of Common Stock for each share of Series V, VI or VII Convertible
Preferred Stock subject to adjustments in certain events.  Under a put option exercisable
for 30 days, holders of shares of Common Stock received on mandatory conversion
will be able to require PLDT to purchase such shares of Common Stock for
Php1,700 per share, US$36.132 per share and JP&yen;4,071.89 per share, for Series
V, VI and VII Convertible Preferred Stock, respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As
at December 31, 2004, 515,818 shares of Series V Convertible Preferred
Stock and 545,122 shares of Series VI Convertible Preferred Stock had been
converted into shares of PLDT common stock.  The aggregate value of the put
option based on outstanding shares as at December 31, 2004 was Php22,016 million, of which Php13,419
million is payable on June 4, 2008 and Php8,597
million on June 4, 2009 if all of the outstanding shares of Series V, VI and
VII PLDT Convertible Preferred Stock were mandatorily converted and all the
underlying shares of common stock were put to PLDT.  The market value of the
underlying shares of common stock was Php14,685
million, based on the market price of PLDT shares of common stock of Php1,360
per share as at December 31, 2004.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i>Change in Control</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Article
V, Section 1 of PLDT's Amended By-Laws may have the effect of preventing a
change in control of PLDT.  This section provides that any person who is
engaged in any business that competes with or is antagonistic to that of PLDT
or its subsidiaries is ineligible for nomination or election to the Board of
Directors.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779245"></a><a name="_Toc46082305">Material Contracts</a></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">We did not enter into any
material contracts within the two years preceding the date of this annual
report. </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779246"></a><a name="_Toc46082306">Exchange Controls and Other Limitations
Affecting Securities Holders</a></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
Circular No. 1389 dated November 10, 1993, as amended by Circular No. 224 dated January 26, 2000, of
the BSP, foreign investments in the shares of stock of Philippine companies listed
in the PSE may be registered either with the BSP or with an investor&#146;s
designated custodian bank.  The foreign investments in listed shares of stock,
which are duly registered with the BSP or with a custodian bank duly designated
by the foreign investor, are entitled to full and immediate capital
repatriation and dividend and interest remittance privileges.  Without the need
to obtain prior BSP approval, commercial banks are authorized to sell and to
remit the equivalent foreign exchange (at the exchange rate prevailing at the
time of actual remittance) representing sales and divestment proceeds or
dividends of a duly registered foreign equity investment upon presentation of a
BSP Registration Document (&#147;BSRD&#148;) together with other supporting documents.  The
BSRD is issued by the BSP or the custodian bank upon registration of the
foreign investment and serves as the authority to repatriate such divestment
and sales proceeds or remittance of cash dividends.  Effective April 3, 2000, only
pre-numbered BSRD forms, printed on BSP security paper may be used and issued
as proof of registration of foreign investments in accordance with existing BSP
rules.  The remitting commercial bank must submit to the BSP a statement of
remittance together with the supporting documents within two banking days from
date of actual remittance.  Foreign investments not duly registered with the
BSP or with the investor's designated custodian bank are not entitled to
repatriation and remittance privileges through the banking system except
capital repatriation or dividend remittance of direct foreign equity
investments made prior to March 15, 1973 when BSP registration was not yet required.  The BSP
should be notified of the transfer of sale of foreign investments in equity or
securities already registered with the BSP, in order that the registration of
the foreign investment may be transferred in the name of the transferee or
purchaser.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Cash
dividends on PLDT's stock are paid in Philippine peso, except dividends on the
Series III and Series VI Convertible Preferred Stock, which are paid in U.S.
dollars and on the Series VII Convertible Preferred Stock, which are paid in
Japanese yen.  PLDT&#146;s Custodian for its Series III Convertible Preferred Stock,
Citibank, N.A. &#150; Manila and PLDT&#146;s Transfer Agent and Dividend Paying Agent for
its Series VI and VII Convertible Preferred Stock, Hongkong and Shanghai
Banking Corporation, converts and remits in the particular foreign currency, at
the prevailing exchange rate, cash dividends due to holders of the Series III,
Series VI and VII Convertible Preferred Stock.  PLDT's Transfer Agent for its
common stock, The Hongkong and Shanghai Banking Corporation, (which also acts
as dividend paying agent) converts and remits in U.S. dollars, at the
prevailing exchange rate, cash dividends due all common shareholders residing
outside the Philippines.  Under the above-mentioned regulations, PLDT has been
able to remit the cash dividends due to shareholders residing outside the Philippines.
As at December 31, 2004, approximately 87% of PLDT&#146;s outstanding shares of
common and preferred stock were held by Philippine persons.  For certain
restrictions on the declaration and payment of dividends by PLDT, see <i>Note
14 &#150; Preferred Stock Subject to Mandatory Redemption</i> and <i>Note 15 &#150;
Stockholders&#146; Equity</i> to the accompanying consolidated financial statements
in Item 18.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Principal
of and interest on PLDT's 9.875% Notes due 2005, 9.25% Notes due 2006, 7.85%
Notes due 2007, 8.35% Notes due 2017, 10.5% Notes due 2009, 10.625% Notes due
2007 and 11.375% Notes due 2012 are payable in U.S. dollars which may be
purchased from the local banking system either pursuant to the registration of
such Notes with the BSP or otherwise pursuant to specific BSP approval of such
payment.  Such principal and interest may also be paid utilizing PLDT's own
dollar resources without necessity of BSP approval.  The BSP, with the approval
of the President of the Philippines, may, however, restrict the availability of foreign
exchange during an exchange crisis, when an exchange crisis is imminent, or in
times of national emergency.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779247"></a><a name="_Toc46082307">Taxation</a></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following is a description of the material
Philippine and United States federal income tax consequences to United States
Holders (as defined below) of owning shares of Common Stock, Series III
Convertible Preferred Stock, ADSs and GDSs (collectively, the &#147;Equity
Securities&#148;).  It applies to you only if you hold your Equity Securities as
capital assets for tax purposes.  This section does not apply to you if you are
a member of a special class of holders subject to special rules, including a
dealer in securities, a trader in securities that elects to use a
mark-to-market method of accounting for securities holdings, a tax-exempt
organization, a life insurance company, a person liable for alternative minimum
tax, a person that actually or constructively owns 10% or more of PLDT&#146;s voting
stock, a person that holds Equity Securities as part of a straddle or a hedging
or conversion transaction, or a United States Holder (as defined below) whose
functional currency is not the U.S. dollar.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">This
section is based on the United States Internal Revenue Code of 1986, as amended
(the &#147;U.S. Tax Code&#148;), its legislative history, existing and proposed
regulations, published rulings and court decisions, and the laws of the
Philippines including the Philippine National Internal Revenue Code of 1997
(the &#147;Philippine Tax Code&#148;) all as currently in effect, as well as on the
Convention Between the Philippines and the United States (the &#147;Philippines-United
States Tax Treaty&#148;).  These laws are subject to change, possibly on a
retroactive basis.  In addition, this section is based in part on the
representations of the Depositary and the assumption that each obligation in
the Deposit Agreement and any related agreement will be performed according to
its terms.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in;
line-height:normal;page-break-after:avoid' style="margin-top:0;margin-bottom:0">You are a United States Holder if you are a beneficial owner of Equity
Securities and you are a citizen or resident of the United States, a domestic
corporation, an estate whose income is subject to United States federal income
tax regardless of its source, or a trust if a United States court can exercise
primary supervision over the trust&#146;s administration and one or more United
States persons are authorized to control all substantial decisions of the
trust.</p>

<p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style="margin-top:0;margin-bottom:0">This discussion addresses only United States
federal income taxation and Philippine income taxation, estate and donor&#146;s
taxation, stock transaction taxation and documentary stamp taxes.</p>

<p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Philippine Taxation</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Taxes on Exchange of ADSs for Common Stock and GDSs
for Series III Convertible Preferred Stock</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Philippine capital gains or stock transaction taxes
and documentary stamp taxes may be payable upon the transfer of shares of
Common Stock to a holder of ADRs or shares of Series III Convertible Preferred
Stock to a holder of GDRs.  See &#147;Capital Gains Tax and Stock Transaction Tax&#148;
and &#147;Documentary Stamp Taxes.&#148;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Taxation
of Dividends</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Under
the Philippine Tax Code, dividends paid by a Philippine corporation to citizens
of the Philippines and resident aliens in the Philippines are subject to a
final withholding tax of 10% while those paid to non-resident aliens engaged in
trade or business within the Philippines are subject to a final withholding tax
of 20%.  Dividends paid to non-resident aliens not engaged in trade or business
within the Philippines are subject to a final withholding tax of 25%.
Dividends paid by a Philippine corporation to other Philippine corporations or
to resident non-Philippine corporations are not subject to tax.  Dividends paid
to non-resident non-Philippine corporations not engaged in a trade or business
in the Philippines by Philippine corporations shall be subject to a final
withholding tax of 15%, subject to the condition that the country in which the
non-resident non-Philippine corporation is domiciled either <br>
(i) allows a credit against the tax due from the non-resident non-Philippine
corporation taxes deemed to have been paid in the Philippines equivalent to 20%
effective July 1, 2005 (which represents the difference between the regular
income tax on non-resident non-Philippine corporations of 35% effective July 1,
2005 and the 15% tax on dividends) (this condition is not satisfied in the case
of corporations domiciled in the United States if such corporations own less
than 10% of the voting stock of PLDT) or (ii) imposes no income taxes on
dividends received by such non-resident non-Philippine corporations from
Philippine corporations (this condition is not satisfied in the case of
corporations domiciled in the United States).  If neither of the foregoing
conditions are met, the dividends paid to the non-resident non-Philippine
corporation shall be subject to the regular income tax rate of 32% (35%
effective July 1, 2005).  Under rulings issued by Philippine tax authorities,
Hong Kong is viewed as falling within clause (ii) and, thus, companies that are
organized in Hong Kong that are not engaged in trade or business in the
Philippines may be entitled to the benefit of the 15% rate.  Such rulings,
however, were based upon the laws of Hong
 Kong as in effect at the time such
rulings were issued, and any subsequent changes in the relevant laws of Hong Kong may
affect the validity of such rulings.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As
further discussed below, in respect of regular quarterly cash dividends payable
on the shares of Series III Convertible Preferred Stock underlying the GDSs,
while such shares are on deposit with the Depositary, PLDT intends to make
payments of withholding tax pursuant to the terms of such Series III
Convertible Preferred Stock, at the rate of 15%, which is the rate applicable
to dividends payable to residents of the domicile of the registered
shareholder, which is a company organized in Hong Kong not engaged in trade or
business in the Philippines.  PLDT reserves the right to change the rate at
which it makes payments of withholding tax whenever it deems it appropriate
under applicable law.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Holders
will receive regular quarterly cash dividends paid in respect of the Series III
Convertible Preferred Stock, but not on the common stock issuable on conversion
of such Series III Convertible Preferred Stock, free and clear of withholding
tax, such withholding tax being an obligation of PLDT pursuant to the terms of
the Series III Convertible Preferred Stock.  Any other dividends will be
subject to withholding tax at the relevant applicable rate.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">If
the holder of Common Stock is a non-resident foreign partnership, which is
treated as a corporation for Philippine tax purposes, dividends on the Common
Stock should be subject to a final withholding tax of 32% (35% effective July
1, 2005).  Cede &amp; Co., the partnership nominee of Depository Trust Company
(&#147;DTC&#148;), should qualify as a non-resident foreign partnership that would be
treated as a corporation for Philippine tax purposes.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
certain circumstances where the holder holds Common Stock, a tax treaty rate
may be applicable with respect to the Philippine withholding tax.  For
instance, holders under such circumstances and as to which the
Philippines-United States Tax Treaty would be applicable would be eligible for
a treaty rate of 25% (or 20% in certain instances).  The 20% treaty rate is
generally not applicable in the case of non-resident non-Philippine
corporations domiciled in the United
 States which own less than 10% of the
voting stock of PLDT.  Holders are required, however, to establish to the
Philippine taxing authorities their eligibility for such treaty rate.
Philippine tax authorities have prescribed, through an administrative issuance,
procedures for availment of tax treaty relief.  PLDT intends to pay withholding
tax at the reduced treaty rate in respect of shares the registered holder of
which is Cede &amp; Co., on the basis that Cede &amp; Co. is a resident of the United States
for purposes of the Philippines-United States Tax Treaty.  PLDT reserves the
right to change the rate at which it makes payments of withholding tax whenever
it deems it appropriate under applicable law.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Capital Gains Tax and Stock Transaction Tax</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The Philippine Tax Code provides that gain from the
sale of shares of stock in a Philippine corporation shall be treated as derived
entirely from sources within the Philippines, regardless of where the shares are sold.  Subject to
applicable tax treaty rates, the rate of tax on such gain, where the share is
not disposed of through the Philippine Stock Exchange, is a final tax of 5% for
gains not exceeding Php100,000 and a final tax of 10% for gains in excess of
that amount.  The rate is the same for both non-resident individuals and
non-resident non-Philippine corporations.  While this tax is not collected
through withholding, the Philippine Tax Code prohibits a transfer from being
recorded on the books of the corporation unless the Philippine Commissioner of
Internal Revenue certifies that the tax has been paid or certain other
conditions are met.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The sale of shares which are
listed in and sold through the PSE are subject to the stock transaction tax
imposed at the rate of 1/2 of 1% of the gross selling price.  This tax is
required to be collected and paid to the government by the selling stockbroker
on behalf of his client.  Sales of shares other than through a Philippine stock
exchange will be subject to Philippine capital gains tax in the manner
described above.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Under
the Philippines-United States Tax Treaty, gains derived by a United States
resident from the sale of shares of stock of a Philippine corporation will not
be subject to Philippine tax, either capital gains tax or stock transaction
tax, unless the shares are those of a corporation over 50% of the assets of
which consist of real property interests located in the Philippines.&nbsp; PLDT
does not believe that it currently is such a corporation.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Conversion Feature</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">PLDT
believes that there would be no Philippine capital gains taxes upon the
conversion of shares of Series III Convertible Preferred Stock into shares of
Common Stock.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Documentary
Stamp Taxes</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The Philippines
imposes a documentary stamp tax upon transfers of shares of stock issued by a
Philippine corporation at a rate of Php1.50 on each Php200, or fractional part
thereof, of the par value of the shares.  The documentary stamp tax is
collectible wherever the document is made, signed, issued, accepted or
transferred, when the obligation or right arises from Philippine sources or the
property is situated in the Philippines.  Effective March 20, 2004,
the documentary stamp tax rate upon transfer of shares of stock issued by a
Philippine corporation is Php0.75 on each Php200, or fractional part thereof,
of the par value of the shares.  However, the imposition of documentary stamp
tax on secondary transfer of shares of stock of a Philippine Corporation which
is listed and traded through the facilities of the Philippine Stock Exchange is
suspended for a period of five years counted from the same effective date.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Estate and Donor's Taxes</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Shares of stock issued by a corporation organized or
constituted in accordance with Philippine law are deemed to have a Philippine
situs and their transfer by way of succession or donation is subject to
Philippine estate and gift taxes.  The transfer of shares of stock by a
deceased individual to his heirs by way of succession, whether such an
individual was a citizen of the Philippines or an alien, regardless of
residence, will be subject to Philippine estate tax at progressive rates
ranging from 5% to 20% if the net estate is over Php200,000.  Individual and
corporate shareholders, whether or not citizens or residents of the
Philippines, who transfer the Equity Securities by way of gift or donation will
be liable for Philippine donor&#146;s tax on such transfers at progressive rates
ranging from 2% to 15%, if the net gifts made during the calendar year exceed
Php100,000.  The rate of tax with respect to net gifts made to a stranger, who
is not a brother, sister, spouse, ancestor, lineal descendant or relative by
consanguinity in the collateral line within the fourth degree of relationship
of the donor, is a flat rate of 30%. Estate and gift taxes will not be
collected in respect of intangible personal property such as the Equity
Securities:</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
if the deceased at the time of
death, or the donor at the time of donation, was a citizen and resident of a
foreign country which at the time of his death or donation did not impose a
transfer tax of any character in respect of intangible personal property of
citizens of the Philippines not residing in that foreign country, or</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
if the laws of the foreign country
of which the deceased or the donor was a citizen and resident at the time of
his death or donation allow a similar exemption from transfer or death taxes of
every character or description in respect of intangible personal property owned
by citizens of the Philippines not residing in that foreign country.</p>

<p style='margin-left:.5in;text-indent:-.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Shares
of stock of a deceased shareholder or shares that have been donated may not be
transferred on the books of the corporation without a certificate from the
Philippine Commissioner of Internal Revenue that the applicable estate or
donor's taxes have been paid.  In the case of ADRs and GDRs, however, there is
no corresponding requirement, unless a transfer of the ADRs and GDRs would also
entail a change in the registration of the underlying shares.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>United States</i><i> Federal
Taxation </i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">For United
 States federal income tax purposes,
United States Holders of GDRs or ADRs will be treated as the owners of the
underlying shares of Series III Convertible Preferred Stock or Common Stock.
Deposits and withdrawals by United States Holders of shares of Series III
Convertible Preferred Stock or Common Stock in exchange for GDRs or ADRs will
not be subject to United States federal income tax.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Taxation of Dividends</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Under
the United States federal income tax laws, and subject to the passive foreign
investment company, or PFIC, rules discussed below, if you are a United States
Holder, the gross amount of any dividend we pay out of our current or
accumulated earnings and profits (as determined for United States federal
income tax purposes) is subject to United States federal income taxation.  If
you are a non-corporate United States Holder, dividends paid to you in taxable
years beginning before January 1, 2009 that constitute qualified dividend
income will be taxable to you at a maximum tax rate of 15% provided that, in
the case of Common Stock or ADSs, you hold the Common Stock or ADSs for more
than 60 days during the 121-day period beginning 60 days before the ex-dividend
date or, in the case of Series III Convertible Preferred Stock or GDSs, if the
dividend is attributable to a period or periods aggregating over 366 days,
provided that you hold the Series III Convertible Preferred Stock or GDSs for
more than 90 days during the 181-day period beginning 90 days before the
ex-dividend date and meet other holding period requirements.  Dividends we pay
with respect to the Equity Securities generally will be qualified dividend
income.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">You
must include any Philippine tax withheld from the dividend payment or, in the
case of Series III Convertible Preferred Stock or GDSs, paid on your behalf by
PLDT, in this gross amount even though you do not in fact receive it.  The
dividend is taxable to you when you, in the case of Common Stock or Series III
Convertible Preferred Stock, or the Depositary, in the case of ADSs or GDSs,
receive the dividend, actually or constructively.  The dividend will not be
eligible for the dividends-received deduction generally allowed to United States
corporations in respect of dividends received from other United States
corporations.  The amount of the dividend distribution that you must include in
your income as a United States Holder will be the U.S. dollar value of the
Philippine peso payments made, determined at the spot Philippine peso/U.S.
dollar rate on the date the dividend distribution is includible in your income,
regardless of whether the payment is in fact converted into U.S. dollars.
Generally, any gain or loss resulting from currency exchange fluctuations
during the period from the date you include the dividend payment in income to
the date you convert the payment into U.S. dollars will be treated as ordinary
income or loss and will not be eligible for the special tax rate applicable to
qualified dividend income.  The gain or loss generally will be income or loss
from sources within the United States for foreign tax credit limitation purposes.
Distributions in excess of current and accumulated earnings and profits, as
determined for United States federal income tax purposes, will be treated as a
non-taxable return of capital to the extent of your basis in the Equity
Securities and thereafter as capital gain. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Subject
to certain limitations, the Philippine tax withheld in accordance with the Philippines-United
States Tax Treaty and paid over to the Philippines will be creditable against your United States
federal income tax liability.  Special rules apply in determining the foreign
tax credit limitation with respect to dividends that are subject to the maximum
15% tax rate.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Dividends
will be income from sources outside the United
 States.  Dividends paid in taxable years beginning before January 1, 2007
generally will be &#147;passive&#148; or &#147;financial services&#148; income, and dividends paid
in taxable years beginning after December 31, 2006 will, depending on your
circumstances, be &#147;passive&#148; or &#147;general&#148; income which, in either case, is
treated separately from other types of income for purposes of computing the
foreign tax credit allowable to you.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Certain Withholding Tax Payments</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Holders
will receive regular quarterly cash dividends paid in respect of the Series III
Convertible Preferred Stock, but not on the Common Stock issuable on conversion
of such Series III Convertible Preferred Stock, free and clear of withholding
tax, such withholding tax being an obligation of PLDT pursuant to the terms of
the Series III Convertible Preferred Stock.  PLDT intends to make such payments
of withholding tax based on an applicable withholding tax rate of 15%.  A
United States Holder that receives dividends free and clear of withholding tax
will be treated for United States federal income tax purposes as having
received an additional distribution with respect to the Series III Convertible
Preferred Stock in the amount of the withholding tax which is paid to the
Philippine Bureau of Internal Revenue on behalf of such United States Holder.
Such a deemed additional distribution will generally be subject to the rules
described above under &#147;Taxation of Dividends.&#148;  The amount of additional income
deemed to have been received by the United States Holder will be equal to the
initial amount of tax paid by PLDT (based on the applicable withholding tax
rate) divided by the difference between one and the applicable withholding tax
rate.  For example, assuming a US$100 dividend received free and clear of a
withholding tax of 15% (the rate believed by PLDT to be the applicable
withholding tax rate; see &#147;Philippine Taxation &#151; Taxation of Dividends&#148;), the
United States Holder will be treated as having received additional income in
the amount of US$15/(1-.15), or US$17.65.  </p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Sale</i><i> or
Other Disposition of Equity Securities</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">A
United States Holder will recognize capital gain or loss upon the sale of
Equity Securities in an amount equal to the difference between such United
States Holder's basis in the Equity Securities and the amount realized upon the
sale.  Such gain or loss generally will be long-term capital gain or loss if,
at the time of sale, exchange or retirement, the Equity Securities have been
held for more than one year.  Capital gain of a non-corporate U.S. holder
that is recognized on or after May 6,
 2003 and before January 1, 2009 is
generally taxed at a maximum rate of 15% where the property is held for more
than one year.  Generally, any such gain or loss will be treated as realized
income or loss from sources within the United
 States for foreign tax credit
limitation purposes.  United States Holders may not be eligible to credit
against their United States federal income tax liability amounts paid in respect
of the Philippine stock transaction tax.  See &#147;&#151; Philippine Taxation &#151; Capital
Gains Tax and Stock Transaction Tax.&#148;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Conversion
Feature</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
general, no gain or loss will be recognized for United States federal income
tax purposes on a conversion of Series III Convertible Preferred Stock into
Common Stock except with respect to cash received in lieu of fractional shares
of stock.  The tax basis for Common Stock received upon conversion will be
equal to the basis of the Series III Convertible Preferred Stock converted and
the holding period of the common stock received upon conversion will include
the holding period of the Series III Convertible Preferred Stock.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
U.S. Tax Code does not authorize a comparable credit for foreign gift or
donor's taxes such as those imposed by the Philippines.  See &#147;&#151; Philippine Taxation &#151; Estate and Donor's
Taxes.&#148;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Passive
Foreign Investment Company Rules</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
believe that the Equity Securities should not be treated as stock of a PFIC for
United States federal income tax purposes, but this conclusion is a
factual determination that is made annually and thus may be subject to change.
If we were to be treated as a PFIC, unless the Equity Securities are
&#147;marketable stock&#148; and a United States Holder elects to be taxed annually on a
mark-to-market basis with respect to the Equity Securities, gain realized on
the sale or other disposition of your Equity Securities would in general not be
treated as capital gain.  Instead, if you are a United States Holder, you would
be treated as if you had realized such gain and certain &quot;excess
distributions&quot; ratably over your holding period for the Equity Securities
and would be taxed at the highest tax rate in effect for each such year to
which the gain was allocated, together with an interest charge in respect of
the tax attributable to each such year.  In addition, dividends that you
receive from us will not be eligible for the special tax rates applicable to
qualified dividend income if we are a PFIC either in the taxable year of the
distribution or the preceding taxable year, but instead will be taxable at
rates applicable to ordinary income.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779248"></a><a name="_Toc46082310">Documents on Display</a></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">We are subject to the informational requirements of
the Exchange Act, and file reports and other information with the Commission,
as required by this act.  Reports and other information filed by us with the
Commission may be inspected and copied at the Commission&#146;s Public Reference Room
at 100 F Street, N.E., Washington, D.C. 20549.  The public may obtain information on the operation
of the Commission&#146;s Public Reference Room by calling the Commission in the United States
at 1-800-SEC-0330.  The Commission also maintains a website that contains
reports, proxy statements and other information regarding registrants that file
electronically with the Commission.  Copies of this material may be obtained by
mail from the public reference section of the Commission, 100 F Street, N.E., Washington, D.C. 20549, at prescribed rates.  These reports and other
information may also be inspected at the offices of the New York Stock
Exchange, 20 Broad Street, New York, New York 10005 and the Archipelago Exchange, 301 Pine Street,
 San Francisco, California 94104, on which the American Depositary Shares representing
our Common Stock are listed.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc75779249"></a><a
name="_Toc46082311">Item 11.     Quantitative
and Qualitative Disclosures about Market Risks</a></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our operations are exposed to various risks, including
liquidity risk, foreign currency risk, interest rate risk and credit risk.  The
importance of managing these risks has significantly increased in light of
considerable change and continuing volatility in the Philippine and
international financial markets.  With a view to managing these risks, we have
incorporated financial risk management functions in our organization,
particularly in our treasury operations.  All of our risk management
initiatives are reviewed and approved by our board of directors. </p>

<p style='line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0"><a name="_Toc75779250"></a><a
name="_Toc46082312">Liquidity Risk
Management</a></p>

<p style='text-indent:.5in;line-height:10.0pt;border:none' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
seek to manage our liquidity profile to be able to finance our capital
expenditures and service our maturing debts.  To cover our financing
requirements, we intend to use internally generated funds and proceeds from
debt and equity issues and sales of certain assets.</p>

<p style='text-indent:.5in;line-height:10.0pt;border:none' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As
part of our liquidity risk management program, we regularly evaluate our
projected and actual cash flow information and continuously assess conditions
in the financial markets for opportunities to pursue fund-raising initiatives.
These initiatives may include bank loans, export credit agency-guaranteed
facilities, and debt capital and equity market issues.</p>

<p style='text-indent:.5in;line-height:10.0pt;border:none' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0"><a name="_Toc75779251"></a><a
name="_Toc46082313">Foreign Exchange
Risk Management</a></p>

<p style='text-indent:.5in;line-height:10.0pt;border:none' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">At
 December 31, 2004, the Philippine peso depreciated against the U.S. dollar to
Php56.341 to US$1.00 from Php55.586 to US$1.00 at December 31, 2003.</p>

<p style='line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table shows our consolidated foreign
currency-denominated monetary assets and liabilities and their peso equivalents
as at December 31, 2004 and 2003:</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:94.34%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:9.0pt'>
 <td   valign=top style=' padding:0in 4.5pt 0in 4.5pt;
 height:9.0pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=13 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt;height:9.0pt'>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Year
 Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt'>
 <td   valign=top style=' padding:0in 4.5pt 0in 4.5pt;
 height:9.0pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=5 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt;height:9.0pt'>
 <p align=center style=';text-align:
 center;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</b>(1)</p>
 </td>
 <td   colspan=2 valign=top style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt;height:9.0pt'>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=6 valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 4.5pt 0in 4.5pt;height:9.0pt'>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2003</b>(2)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt'>
 <td   valign=top style=' padding:0in 4.5pt 0in 4.5pt;
 height:9.0pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 4.5pt 0in 4.5pt;height:9.0pt'>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>US$</b></p>
 </td>
 <td   colspan=2 valign=top style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt;height:9.0pt'>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 4.5pt 0in 4.5pt;height:9.0pt'>
 <p align=center style=';text-align:
 center;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Php</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt;
 height:9.0pt'>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt;height:9.0pt'>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>US$</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt;
 height:9.0pt'>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 4.5pt 0in 4.5pt;height:9.0pt'>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Php</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt'>
 <td   valign=top style=' padding:0in 4.5pt 0in 4.5pt;
 height:9.0pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=13 valign=top style=' border:none;
 padding:0in 4.5pt 0in 4.5pt;height:9.0pt'>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in
 millions)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt'>
 <td   valign=top style=' padding:0in 4.5pt 0in 4.5pt;
 height:9.0pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Current Financial Assets</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt;
 height:9.0pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt;
 height:9.0pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt;
 height:9.0pt'>
 <p align=center style=';text-align:
 center;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt;
 height:9.0pt'>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt;
 height:9.0pt'>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt;
 height:9.0pt'>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 4.5pt 0in 4.5pt;
 height:9.0pt'>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='text-indent:4.5pt;line-height:93%;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Cash and cash
 equivalents</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$251</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';;text-align:right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php14,142</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$146</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php8,116</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.35pt'>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:10.35pt'>
 <p style='text-indent:4.5pt;line-height:93%;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Short-term investments</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:10.35pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">69</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:10.35pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:10.35pt'>
 <p align=right style='text-align:right;text-indent:4.5pt;
 line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,888</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:10.35pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:10.35pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">30</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:10.35pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:10.35pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,668</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.35pt'>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:10.35pt'>
 <p style='text-indent:4.5pt;line-height:93%;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Trade and other
 receivables</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:10.35pt'>
 <p align=right style='text-align:right;text-indent:4.5pt;
 line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">146</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:10.35pt'>
 <p align=right style='text-align:right;text-indent:4.5pt;
 line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:10.35pt'>
 <p align=right style='text-align:right;text-indent:4.5pt;
 line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,226</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:10.35pt'>
 <p align=right style='text-align:right;text-indent:4.5pt;
 line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:10.35pt'>
 <p align=right style='text-align:right;text-indent:4.5pt;
 line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">195</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:10.35pt'>
 <p align=right style='text-align:right;text-indent:4.5pt;
 line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:10.35pt'>
 <p align=right style='text-align:right;text-indent:4.5pt;
 line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,839</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.7pt'>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:3.7pt'>
 <p style='text-indent:4.5pt;line-height:93%;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Derivative assets</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt;height:3.7pt'>
 <p align=right style='text-align:right;text-indent:4.5pt;
 line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:3.7pt'>
 <p align=right style='text-align:right;text-indent:4.5pt;
 line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt;height:3.7pt'>
 <p align=right style='text-align:right;text-indent:4.5pt;
 line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">335</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:3.7pt'>
 <p align=right style='text-align:right;text-indent:4.5pt;
 line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt;height:3.7pt'>
 <p align=right style='text-align:right;text-indent:4.5pt;
 line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:3.7pt'>
 <p align=right style='text-align:right;text-indent:4.5pt;
 line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt;height:3.7pt'>
 <p align=right style='text-align:right;text-indent:4.5pt;
 line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">262</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='text-indent:9.0pt;line-height:93%;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Total current financial
 assets</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">472</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';;text-align:right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">26,591</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">376</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">20,885</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Noncurrent Financial Assets</b></p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';;text-align:right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='text-indent:4.5pt;line-height:93%;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Derivative assets </p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">73</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';;text-align:right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,116</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">24</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,361</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='text-indent:9.0pt;line-height:93%;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Total non-current
 financial assets</p>
 </td>
 <td   colspan=2 valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">73</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';text-align:right;
 line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,116</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">24</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,361</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.75pt'>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:10.75pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Total Financial Assets</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;padding:0in 4.5pt 0in 4.5pt;height:
 10.75pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>US$545</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:10.75pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;padding:0in 4.5pt 0in 4.5pt;height:
 10.75pt'>
 <p align=right style=';text-align:right;
 line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Php30,707</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:10.75pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;padding:0in 4.5pt 0in 4.5pt;height:
 10.75pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>US$400</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:10.75pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 4.5pt 0in 4.5pt;height:10.75pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Php22,246</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Current Financial Liabilities</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='text-indent:4.5pt;line-height:93%;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Accounts payable</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$46</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php2,592</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$71</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php3,947</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt'>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:9.0pt'>
 <p style='margin-left:9.0pt;text-indent:-4.5pt;line-height:
 93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Accrued
 expenses and other current liabilities</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:9.0pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">77</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:9.0pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:9.0pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,338</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:9.0pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:9.0pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">71</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:9.0pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:9.0pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,947</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:4.5pt;margin-bottom:.0001pt;line-height:93%;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Derivative
 liabilities</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">473</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">91</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='margin-left:4.5pt;line-height:93%;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Interest-bearing
 financial liabilities</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">483</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">27,203</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">405</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">22,512</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='text-indent:9.0pt;line-height:93%;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Total current financial
 liabilities</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">614</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">34,606</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">549</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">30,497</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Noncurrent Financial Liabilities</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='text-indent:4.5pt;line-height:93%;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Interest-bearing
 financial liabilities</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,126</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">119,733</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,772</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">156,177</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='text-indent:4.5pt;line-height:93%;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Derivative Liabilities</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">105</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,930</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">47</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,737</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='text-indent:4.5pt;line-height:93%;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Preferred stock subject
 to mandatory redemption</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">222</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,512</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">195</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,816</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='margin-right:9.8pt;text-indent:9.0pt;line-height:
 93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total
 noncurrent financial liabilities</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,453</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">139,175</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,014</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">170,730</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.75pt'>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:10.75pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Total Financial Liabilities</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;padding:0in 4.5pt 0in 4.5pt;height:
 10.75pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>US$3,067</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:10.75pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;padding:0in 4.5pt 0in 4.5pt;height:
 10.75pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Php173,781</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:10.75pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;padding:0in 4.5pt 0in 4.5pt;height:
 10.75pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>US$3,563</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt;
 height:10.75pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 4.5pt 0in 4.5pt;height:10.75pt'>
 <p align=right style=';text-align:
 right;line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Php201,227</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.7pt'>
 <td   valign=top style=' padding:0in 4.5pt 0in 4.5pt;
 height:3.7pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">______________</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt;
 height:3.7pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt;
 height:3.7pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt;
 height:3.7pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt;
 height:3.7pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt;
 height:3.7pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt;
 height:3.7pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 4.5pt 0in 4.5pt;
 height:3.7pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=3 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=3 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>(1)  The exchange rate used was
 Php56.341 to US$1.00</i></p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style='text-align:right;line-height:93%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=3 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>(2)  The exchange rate used was
 Php55.586 to US$1.00.</i></p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=3 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   valign=top style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 </tr>
 <tr height=0>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 </tr>
</table></center></div>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">While a certain percentage of our revenues is either
linked to or denominated in U.S. dollars, substantially all of our indebtedness
and related interest expense, a substantial portion of our capital expenditures
and a portion of our operating expenses are denominated in foreign currencies,
mostly in U.S. dollars.</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style="margin-top:0;margin-bottom:0">As at December 31, 2004, approximately
98% of our total consolidated debts were denominated in foreign currencies,
principally in U.S. dollars.  Of our foreign currency-denominated debts 4% are
in Japanese yen, and the balance in U.S. dollars.  Thus, a weakening of the
Philippine peso against the U.S. dollar or Japanese yen will increase both the principal
amount of our unhedged foreign currency-denominated debts (representing 64% of
our consolidated foreign-currency debts), and interest expense on our debt in
peso terms.  In addition, many of our financial ratios and other financial
tests will be negatively affected.  If, among other things, the value of the
Philippine peso against the U.S. dollar drops from its current level, we may be
unable to maintain compliance with these ratios, which could result in
acceleration of some or all of our indebtedness.  For further information on
our loan covenants, see &#147;Item 5. Operating and Financial Review and Prospects &#151;
Liquidity and Capital Resources &#151; Financing Activities &#151; Debt Financing &#151;
Covenants&#148; above and <i>Note 12 &#150; Interest-bearing Financial Liabilities</i> to
the accompanying consolidated financial statements in Item 18.</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">To
manage foreign exchange risks, stabilize cash flows, and improve investment and
cash flow planning, we enter into forward foreign exchange contracts, foreign
currency swap contracts, currency options and other hedging products aimed at
reducing and/or managing the adverse impact of changes in foreign exchange
rates on our operating results and cash flows.  However, these hedges do not
cover all of our exposure to foreign exchange risks, and hedges to cover all of
our exposure are not currently readily available.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Specifically,
we use forward foreign exchange contracts, foreign currency swap contracts and
currency option contracts to manage the foreign exchange risk associated with
our foreign currency-denominated loans.  As at December 31, 2004, PLDT&#146;s
outstanding forward foreign exchange contracts, principal-only long-term
cross-currency swap contracts and currency option contracts amounted to US$87
million and JP&yen;14 million; US$550 million; and US$251 million, respectively.
Smart&#146;s outstanding forward foreign exchange contracts amounted to US$69
million as at December 31, 2004.  For further discussions of these contracts, see <i>Note
23 &#150; Financial Assets and Liabilities</i> to the accompanying consolidated
financial statements in Item 18.</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779252"></a><a name="_Toc46082314">Interest Rate Risk Management</a></p>

<p style='text-indent:.5in;line-height:9.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">On
a limited basis, we enter into interest rate swap agreements in order to manage
our exposure to interest rate fluctuations.  We make use of hedging instruments
and structures solely for reducing or managing financial risks associated with
our liabilities and not for trading or speculative purposes</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The
table below sets out the carrying amount, by maturity, of our financial
instruments that are exposed to interest rate risk for the years ended December 31, 2004 and
2003:</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Year
Ended December 31, 2004</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:99.62%;;border-collapse:collapse;border-collapse:
 collapse !msorm'>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='margin-left:9.0pt;text-align:center;
 text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style=';text-align:
 center' style="margin-top:0;margin-bottom:0"><b>Below 1 year</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style=';text-align:
 center' style="margin-top:0;margin-bottom:0"><b>1-2 years</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style=';;text-align:center' style="margin-top:0;margin-bottom:0"><b>2-3 years</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style=';;text-align:center' style="margin-top:0;margin-bottom:0"><b>3-4 years</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style=';;text-align:center' style="margin-top:0;margin-bottom:0"><b>4-5 years</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Over 5 years</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>In U.S. Dollar</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>In Php</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Fair Value</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=4 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>(in millions)</b></p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:99.62%;;border-collapse:collapse;border-collapse:
 collapse !msorm'>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><b>Liabilities:</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Long-term Debt</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:4.5pt' style="margin-top:0;margin-bottom:0"><i>Fixed
 Rate</i></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">US$
 Notes (in millions)</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">110</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">130</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .4pt;text-align:right' style="margin-top:0;margin-bottom:0">272</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .4pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .4pt;text-align:right' style="margin-top:0;margin-bottom:0">175</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .4pt;text-align:right' style="margin-top:0;margin-bottom:0">549</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">1,236</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">69,652</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">73,662</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Interest
 rate</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">9.875%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">9.250%</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .4pt;text-align:right' style="margin-top:0;margin-bottom:0">7.85% to 10.625%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .4pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .4pt;text-align:right' style="margin-top:0;margin-bottom:0">10.50%</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .4pt;text-align:right' style="margin-top:0;margin-bottom:0">8.35% to 11.375%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">US$
 Fixed Loans (in millions)</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">125</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">83</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">61</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">34</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">24</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">280</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"> 607</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">34,190</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">32,452</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">4.49% to 8.03%</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">4.49% to 7.95%</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">4.49% to 7.95%</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">4.49% to 7.58%</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">4.49% to 6.56%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">2.25% </p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Japanese
 Yen (in millions)</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">27</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">27</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">27</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">14</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">95</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">5,363</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">5,414</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">2.125%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">2.125%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">2.125%</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">2.125%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Philippine
 Peso (in millions)</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">14</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">14</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">14</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">42</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">2,371</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">2,537</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">11.18% to 14%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">11.6% to 24%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">15%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:4.5pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 <p style='margin-left:4.5pt' style="margin-top:0;margin-bottom:0"><i>Variable
 Rate</i></p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">U.S.
 Dollar (in millions)</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">212</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">198</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">154</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">65</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">52</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">132</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">813</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">45,832</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">45,832</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">GOVCO&#146;s cost <br>
 + 0.20%; 0.15% to 4.30% over LIBOR</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">GOVCO&#146;s cost <br>
 + 0.20%; 0.15% to 4.30% over LIBOR</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">GOVCO&#146;s cost <br>
 + 0.20%; 0.15% to 4.30% over LIBOR</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">0.15% to 4.30% over
 LIBOR</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">0.65% to 2.5% over LIBOR</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">0.5% to 2.5% over LIBOR</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Japanese
 Yen (in millions)</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">22</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">1,212</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">1,212</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">1.70% over JPY LIBOR</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">1.70% over JPY LIBOR</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">1.70% over JPY LIBOR</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">1.70% over JPY LIBOR</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Philippine Peso (in millions)</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">14</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">777</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">777</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">1.0% over 91-day T-bill rate to 11.25%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">1.0% over 91-day T-bill rate to 11.25%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">1.0% over 91-day T-bill
 rate to 11%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">1.0% over 91-day T-bill
 rate</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">1.0% over 91-day T-bill
 rate</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">1.0% over 91-day T-bill
 rate</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-left:13.5pt;text-align:right;
 text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>2,829</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>159,397</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0"><b>161,886</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:4.5pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 <p style='margin-left:4.5pt' style="margin-top:0;margin-bottom:0"><i>Interest
 rate swap (fixed to floating)</i></p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">U.S. Dollar (US$125 million)</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">(62)</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">(3,468)</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">(3,468)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Japanese Yen (JPY15,037
 million)</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Fixed Rate on US$ notional </p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">11.375%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">11.375%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">11.375%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">11.375%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">11.375%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;
 border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Variable Rate on JPY
 notional</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">8.11% over LIBOR</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">8.11% over LIBOR</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">8.11% over LIBOR</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">8.11% over LIBOR</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;
 border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;
 border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">8.11% over LIBOR</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Year
Ended December 31, 2003</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:99.62%;;border-collapse:collapse;border-collapse:
 collapse !msorm'>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='margin-left:9.0pt;text-align:center;
 text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style=';
 text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Below
 1 year</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style=';text-align:
 center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1-2 years</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style=';;text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2-3 years</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style=';;text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>3-4 years</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style=';;text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4-5 years</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style=';;text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Over 5 years</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>In U.S. Dollar</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>In Php</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style=';
 ;text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Fair Value</b></p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:99.62%;;border-collapse:collapse;border-collapse:
 collapse !msorm'>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   colspan=2 valign=bottom style=' border:none;
 border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;
 border-top:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;
 border-top:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-top:solid windowtext 1.0pt !msorm;
 padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-top:solid windowtext 1.0pt !msorm;
 padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-top:solid windowtext 1.0pt !msorm;
 padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-top:solid windowtext 1.0pt !msorm;
 padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;
 border-top:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;
 border-top:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><b>Liabilities:</b></p>
 </td>
 <td   colspan=3 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Long-term Debt</p>
 </td>
 <td   colspan=3 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:4.5pt' style="margin-top:0;margin-bottom:0"><i>Fixed
 Rate</i></p>
 </td>
 <td   colspan=3 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">US$
 Notes (in millions)</p>
 </td>
 <td   colspan=3 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">77</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">138</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .4pt;text-align:right' style="margin-top:0;margin-bottom:0">175</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .4pt;text-align:right' style="margin-top:0;margin-bottom:0">300</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .4pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .4pt;text-align:right' style="margin-top:0;margin-bottom:0">724</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">1,414</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">78,581</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">80,273</p>
 </td>
 </tr>
 <tr>
 <td   colspan=2 valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Interest
 rate</p>
 </td>
 <td   colspan=3 valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">10.625%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">9.875%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .4pt;text-align:right' style="margin-top:0;margin-bottom:0">9.25%</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .4pt;text-align:right' style="margin-top:0;margin-bottom:0">7.85% to 10.625%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .4pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .4pt;text-align:right' style="margin-top:0;margin-bottom:0">8.35% to 11.375%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">US$
 Fixed Loans (in millions)</p>
 </td>
 <td   colspan=3 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">114</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">104</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">62</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">40</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">13</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"> 336</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">18,722</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">19,974</p>
 </td>
 </tr>
 <tr>
 <td   colspan=2 valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   colspan=3 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">5.60% to 8.03%</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">5.60% to 8.03%</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">5.60% to 7.95%</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">5.60% to 7.95%</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">5.65% to 7.58%</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">5.65% to 6.56%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Japanese
 Yen (in millions)</p>
 </td>
 <td   colspan=3 valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">26</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">26</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">26</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">13</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">  91</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">5,068</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">5,120</p>
 </td>
 </tr>
 <tr>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   colspan=3 valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">2.125%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">2.125%</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">2.125%</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">2.125%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Philippine
 Peso (in millions)</p>
 </td>
 <td   colspan=3 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">25</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">19</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">14</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">15</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">  73</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">4,043</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">4,385</p>
 </td>
 </tr>
 <tr>
 <td   colspan=2 valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   colspan=3 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">11.18% to 17.5%</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">11.18% to 16.8%</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">15.816% to 16.8%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">15%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:4.5pt' style="margin-top:0;margin-bottom:0"><i>Variable
 Rate</i></p>
 </td>
 <td   colspan=3 valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style=';text-align:
 center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">U.S.
 Dollar (in millions)</p>
 </td>
 <td   colspan=3 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">226</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">220</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">204</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">145</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">66</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">205</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">1,066</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">59,337</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">59,337</p>
 </td>
 </tr>
 <tr>
 <td   colspan=2 valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   colspan=3 valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">GOVCO&#146;s cost <br>
 + 0.20%; 0.15% to 4.30% over LIBOR</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">GOVCO&#146;s cost <br>
 + 0.20%; 0.15% to 4.30% over LIBOR</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">GOVCO&#146;s cost <br>
 + 0.20%; 0.15% to 4.30% over LIBOR</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">GOVCO&#146;s cost <br>
 + 0.20%; 0.15% to 4.30% over LIBOR </p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">0.15% to 4.30% over
 LIBOR</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">0.65% to 2.5% over LIBOR</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Japanese
 Yen (in millions)</p>
 </td>
 <td   colspan=3 valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">34</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">34</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">35</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">130</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"> 248</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">13,792</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">13,792</p>
 </td>
 </tr>
 <tr>
 <td   colspan=2 valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   colspan=3 valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">1.0% to 3.85% over JPY LIBOR</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">1.0% to 3.85% over JPY LIBOR </p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">1.0% to 3.85% over JPY LIBOR</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">1.0% over JPY LIBOR</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">1.0% over JPY LIBOR</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">1.0% over JPY LIBOR</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Philippine Peso (in millions)</p>
 </td>
 <td   colspan=3 valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">74</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">85</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">4,731</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">4,731</p>
 </td>
 </tr>
 <tr>
 <td   colspan=2 valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   colspan=3 valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">1.0% over 91-day T-bill rate to 11%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">1.0% over 91-day T-bill rate to 11%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">1.0% over 91-day T-bill
 rate</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">1.0% over 91-day T-bill
 rate</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">1.0% over 91-day T-bill
 rate</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">1.0% over 91-day T-bill
 rate</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-left:13.5pt;text-align:right;
 text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>3,313</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>184,</b><b>274</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>187,612</b></p>
 </td>
 </tr>
 <tr>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   colspan=4 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:4.5pt' style="margin-top:0;margin-bottom:0"><i>Interest
 rate swap (fixed to floating)</i></p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   colspan=4 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Japanese Yen (JPY15,037
 million)</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">(46)</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">(2,582)</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">(2,582)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Fixed Rate on US$ notional </p>
 </td>
 <td   colspan=4 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">11.375%</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">11.375%</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">11.375%</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">11.375%</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">11.375%</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='height:13.05pt' style='height:13.05pt !msorm'>
 <td   colspan=3 valign=top style=' border:none;
 border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;border:
 none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:13.05pt'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Variable Rate on JPY
 notional</p>
 </td>
 <td   colspan=2 valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;
 border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:13.05pt'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">8.16% over LIBOR</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 padding:0in 5.4pt 0in 5.4pt !msorm;height:13.05pt'>
 <p align=right style=';text-align:
 right' style="margin-top:0;margin-bottom:0">8.16% over<br>
  LIBOR</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 padding:0in 5.4pt 0in 5.4pt !msorm;height:13.05pt'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">8.16% over LIBOR</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 padding:0in 5.4pt 0in 5.4pt !msorm;height:13.05pt'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">8.16% over LIBOR</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 padding:0in 5.4pt 0in 5.4pt !msorm;height:13.05pt'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;
 border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:13.05pt'>
 <p align=right style=';margin-right:
 .6pt;text-align:right' style="margin-top:0;margin-bottom:0">8.16% over LIBOR</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 padding:0in 5.4pt 0in 5.4pt !msorm;height:13.05pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 padding:0in 5.4pt 0in 5.4pt !msorm;height:13.05pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 padding:0in 5.4pt 0in 5.4pt !msorm;height:13.05pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr height=0>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 </tr>
</table></center></div>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779253"></a><a name="_Toc46082315">Item 12.     Description of Securities Other than
Equity Securities</a></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Not Applicable.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779254"></a><a name="_Toc46082316">PART II</a></p>

<p align=center style='text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc75779255"></a><a
name="_Toc46082317">Item 13.     Defaults,
Dividend Arrearages and Delinquencies</a></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Piltel has experienced significant financial
difficulties in recent years.  It has restructured substantially all of its
debts in accordance with its debt restructuring plan, which was signed on June 4, 2001.  In June and October 2002, more creditors of Piltel agreed to participate in
its restructuring plan on the same terms.  See &#147;Item 3. Key Information &#151; Risks
Factors &#151; Risks Relating to Us &#151; Piltel has experienced financial difficulties
and we cannot assure you that it will be able to discharge any of its debts or
other obligations.&quot;  As at December 31, 2004, total restructured long-term
debt of Piltel amounted to Php7,184 million, with maturities of up to June 14, 2016.  As at December 31, 2004, Piltel had an aggregate principal amount of Php52
million of unrestructured debt.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">Piltel is currently not in
compliance with the terms of convertible bonds with principal amount of US$0.7
million (approximately US$0.9 million redemption price at the option of the
holders).  See <i>Note 12 &#150; Interest-bearing Financial Liabilities</i> to the
accompanying consolidated financial statements in Item 18.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
Series C, Class I Preferred Stock of Piltel, is entitled to annual cumulative
cash dividends of Php0.20 per share (10% on the par value per share).  Piltel
is in arrears with payments of dividends with respect to the Series C, Class I
Preferred Stock in the amount of Php1 million for the years ended December 31, 2004,
2003, 2002 and 2001.  As at the date of this annual report on Form 20-F, the
total arrearage with respect to the Series C, Class I Preferred Stock of Piltel
amounted to approximately Php5 million.  See &#147;Item 3. Key Information &#151; Risk
Factors &#151; Risks Relating to Us &#151; Piltel has
experienced financial difficulties and we cannot assure you that it will be
able to discharge any of its debt or other obligations and that its creditors
will not take measures to enforce their claims.&#148;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">.<a
name="_Toc75779256"></a><a name="_Toc46082318">Item 14.    Material
Modifications to the Rights of Security Holders and Use of Proceeds</a></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">None.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc75779257"></a><a
name="_Toc46082319">Item 15.     Controls and
Procedures</a></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our
management, with the participation of our principal executive officer and
principal financial officer, carried out an evaluation of the effectiveness of
our disclosure controls and procedures (as defined in Rule 13a-15(e) and
15d-15(e) of the Securities Exchange Act of 1934, as amended) as at December
31, 2004.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Based on this evaluation, our
chief executive officer and principal financial officer concluded that our
disclosure controls and procedures were effective as at December 31, 2004.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">During 2004, no change to our
internal control over financial reporting occurred that has materially
affected, or is reasonably likely to materially affect, our internal control
over financial reporting.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779258"></a><a name="_Toc46082320">Item 16A. Audit Committee Financial Expert</a></p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
board of directors has determined that currently none of the members of the
Audit Committee is an audit committee financial expert as defined under the
applicable rules of the U.S. SEC issued pursuant to Section 407 of the
Sarbanes-Oxley Act of 2002.  Our board of directors believes that the audit
committee members along with its advisors, possess sufficient financial
knowledge and experience.  Our board of directors has appointed one of our
non-independent directors, Corazon de la Paz, as Audit Committee advisor to
render advice on complex financial reporting or accounting issues that may be
raised in our Audit Committee&#146;s evaluation of our financial statements and
other related matters.  Formerly the Chairman and a Senior Partner of Joaquin
Cunanan &amp; Company (a member firm of PricewaterhouseCoopers Worldwide),
Corazon de la Paz, is a certified public accountant and possesses in depth knowledge
of accounting principles (including U.S. GAAP), internal controls and
procedures for financial reporting and audit committee functions, as well as
extensive experience in overseeing or actively supervising the preparation,
audit, analysis or evaluation of financial statements and in addressing complex
and general financial reporting, accounting and audit issues.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc75779259">Item 16B.  Code of Business Conduct and Ethics</a></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">On March 30,
 2004, our board of directors approved
and adopted our Code of Business Conduct and Ethics, or Code of Ethics, that
sets out our business principles and standards of behavior and business
relationships.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">It is our declared objective that
all our actions and those of our directors, officers and employees must, at all
times, be consistent with the principles of accountability, integrity, fairness
and transparency.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Our Code of Ethics provides
standards to foster honest and ethical behavior including the following:</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-align:justify;text-indent:
- -.25in' style="margin-top:0;margin-bottom:0">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Compliance with applicable laws,
rules and regulations;</p>

<p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Ethical handling of conflicts of
interest, corporate opportunities and confidential information;</p>

<p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-align:justify;text-indent:
- -.25in' style="margin-top:0;margin-bottom:0">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Protection and proper use of our
assets;</p>

<p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-align:justify;text-indent:
- -.25in' style="margin-top:0;margin-bottom:0">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Fair dealing with our employees,
customers, service providers, suppliers and competitors;</p>

<p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-align:justify;text-indent:
- -.25in' style="margin-top:0;margin-bottom:0">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Compliance with our reporting and
disclosure obligations to the relevant regulators and the investors;</p>

<p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-align:justify;text-indent:
- -.25in' style="margin-top:0;margin-bottom:0">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Compliance with our disclosure and
financial reporting controls and procedures;</p>

<p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-align:justify;text-indent:
- -.25in' style="margin-top:0;margin-bottom:0">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Assessment and management of risks
involved in our business endeavours; and</p>

<p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-align:justify;text-indent:
- -.25in' style="margin-top:0;margin-bottom:0">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Adoption of international best
practices of good corporate governance in the conduct of our business.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Corporate Governance</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our Code of Ethics has been adopted to strengthen the
implementation of our Corporate Governance Manual, or Governance Manual, which
was adopted and approved by our board of directors in September 2002.  Our
Governance Manual seeks to institutionalize the principles of good governance
which our board of directors and management believe to be a necessary component
of sound business management.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our
Governance Manual conforms with the requirements of the Code of Corporate
Governance, or Philippine SEC Governance Code, that was promulgated by the
Philippine Securities and Exchange Commission, or Philippine SEC, under the
Philippine SEC Memorandum Circular No. 2, Series of 2002, on April 5, 2002, in
line with the Philippine Government&#146;s policy to promote corporate governance
reform aimed to raise investor confidence, develop capital market and help
achieve sustained growth for the Philippine corporate sector and the economy.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">In compliance with the Philippine SEC Governance Code
and consistent with the relevant provisions of the Securities Regulation Code
and Corporation Code of the Philippines, our Governance Manual covers the following key
areas:</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-align:justify;text-indent:
- -.25in' style="margin-top:0;margin-bottom:0">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The qualifications and grounds for
disqualification for directorship;</p>

<p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The requirement that at least two
or twenty percent of the members of our board of directors, whichever is
lesser, must be independent directors and the standards/criteria for the
determination of independent directors;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The duties and responsibilities of
our board of directors and the individual directors;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our board committees,
specifically, the nomination committee, audit committee and executive
compensation committee, the composition and the principal duties and responsibilities
of such committees;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The role of our chairman in
ensuring compliance with the corporate governance principles;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The role of our president/chief
executive officer in ensuring that our organizational and procedural controls
are adequate and effective to ensure reliability and integrity of financial and
operational information, effectiveness and efficiency of operations,
safeguarding of assets and compliance with laws, rules, regulations and
contracts;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The duties and responsibilities of
our corporate secretary/assistant corporate secretary in terms of the support
services that they need to provide our board in upholding sound corporate
governance;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The duties and responsibilities of
the head of our internal audit organization that would provide our board of
directors, management and shareholders with reasonable assurance that our key
organizational and procedural controls are appropriate, adequate, effective and
reasonably complied with;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The functions of our independent
auditors that would reasonably ensure an environment of sound corporate
governance as reflected in our financial records and reports; the requirement
that non-audit work of the independent auditors should not conflict with their
function as independent auditors; the requirement to rotate, at least once
every five years, the independent auditors or the lead partner assigned to
handle the independent audit of our financial statements;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">10.&nbsp;&nbsp;&nbsp;&nbsp;
Our commitment to respect and
promote shareholders&#146; rights such as voting right, pre-emptive right, inspection
right, dividend right, appraisal right, and right to receive information about
the background, business experience, compensation and shareholdings of our
directors and officers and their transactions with us;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">11.&nbsp;&nbsp;&nbsp;&nbsp;
The requirement to appoint a
compliance officer and the duties and responsibilities of such compliance
officer including the establishment of an evaluation system to determine and
measure compliance with the provisions of our Governance Manual; and</p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">12.&nbsp;&nbsp;&nbsp;&nbsp;
The penalties for violations of
our Governance Manual.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">We
have summarized in our website the differences between our corporate government
practices and those required of U.S. listed companies under NYSE Section
303A.11.  Please refer to:</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='punctuation-wrap:hanging;text-autospace:
ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">http://www.pldt.com.ph/download/pldt-corpgov_manual.pdf</p>

<p style='punctuation-wrap:hanging;text-autospace:
ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">http://www.pldt.com.ph/download/pldt-code_ethics.pdf</p>

<p style='punctuation-wrap:hanging;text-autospace:
ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">http://www.pldt.com.ph/download/pldt-disclosure.pdf</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Chief Corporate Governance Officer</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our chief governance officer is responsible for
monitoring compliance with, interpreting and deciding any issues arising from,
investigating and determining violations and recommending the disciplinary
actions against violators of our Governance Manual and Code of Ethics.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i>Board Committees</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
have four board committees namely, the governance and nomination, audit, executive
compensation and finance committees.  Each committee has a board- approved
written charter that provides for such Committee&#146;s composition, membership
qualifications, functions and responsibilities, conduct of meetings, and
reporting procedure to the board.  See &#147;Item 6. Directors, Senior Management
and Employees &#150;&#150; Audit, Governance and Nomination, Executive Compensation and
Finance Committees&#148; for further details.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Internal Audit Organization</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">We have an internal audit organization that determines
whether our network or risk management, control and governance processes are
adequate and functioning to ensure that:</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Risks are appropriately identified
and managed;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Significant financial, managerial,
and operating information are accurate, reliable, and timely;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Employees&#146; actions are in
compliance with policies, standards, procedures, and applicable laws and
regulations;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Resources are acquired
economically, used efficiently, and adequately protected;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Programs, plans and objectives are
achieved;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Quality and continuous improvement
are fostered in our control process;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Significant legislative or
regulatory issues impacting us are recognized and addressed appropriately; and</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Interaction with various
governance groups occurs as needed.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">To ensure independence, the head
of our internal audit organization reports functionally to our audit committee
and administratively to our president and chief executive officer.  He is
accountable to management and our audit committee in the discharge of his
duties and is required to:</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Provide annually an assessment on
the adequacy and effectiveness of our processes for controlling our activities
and managing our risks;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Report significant issues related
to the processes of controlling our activities, including potential improvements
to those processes, and provide information concerning such issues;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Periodically provide information
on the status and results of the annual audit plan and the sufficiency of our
internal audit organization&#146;s resources; and</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Coordinate with and provide
oversight of other control and monitoring functions (risk management,
compliance, security, legal, ethics, environmental, external audit).</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Our internal audit organization
has a charter that has been approved by our audit committee.  It seeks to comply
with the Standards for the Professional Practice of Internal Auditing of The
Institute of Internal Auditors in the discharge of its scope of work and
responsibilities.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Policy on Employee Disclosure of Questionable Accounting or Auditing
Matters</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">We
have a written policy on the handling of employees&#146; complaints or disclosures
about irregularities regarding accounting, internal controls and auditing
matters and the protection against retaliation for those employees who make
such complaints or disclosures.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Any
employee may submit a complaint or disclosure of the above nature, in writing,
to the Audit Committee or, verbally, to the internal audit organization, in
either case, through the head of our internal audit organization.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The head of our internal audit
organization facilitates the investigation of these complaints or disclosures
and ensures the appropriate reporting to our audit committee on the results of
the investigations and the prompt referrals of findings to the appropriate
units concerned.  Our committee on employee discipline is responsible for
evaluating and approving the appropriate disciplinary action against erring
employees with the rank of assistant vice president or lower while our
corporate governance officer jointly with our corporate secretary are
responsible for evaluating and recommending to our president/chief executive
officer the appropriate disciplinary action against erring officers with the
rank of vice president or higher.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
public may obtain information on our Code of Ethics, Corporate Governance
Guidelines and Charters of our Board Committees.  We undertake to provide a
copy, without charge, to any person requesting for such copy from our Chief
Governance Officer, Rene G. Banez<i>, with e-mail address rgbanez@pldt.com.ph </i>or
telephone number +632-816-8917.  We also maintain a website at <i>www.pldt.com.ph
</i>wherein reports filed by us and other information may be accessed.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc75779260">Item 16C.  Principal Accountant Fees and Services</a></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table
summarizes the fees paid or accrued for services provided by our external
auditors for the fiscal years ended December 31, 2004 and 2003:</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='margin-left:77.4pt;border-collapse:collapse;border-collapse:collapse !msorm'>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">2004</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=4 valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=4 valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#DDDDDD;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Audit Fees</p>
 </td>
 <td  valign=bottom style=' background:#DDDDDD;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php31</p>
 </td>
 <td  colspan=2 valign=top style=' background:#DDDDDD;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#DDDDDD;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php24</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Tax Fees</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td  colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#DDDDDD;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">All Other Fees</p>
 </td>
 <td  valign=bottom style=' background:#DDDDDD;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p style='page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0">6</p>
 </div>
 </td>
 <td  colspan=2 valign=top style=' background:#DDDDDD;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#DDDDDD;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p style='page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0">13</p>
 </div>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-bottom:3.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <div style='border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 1.0pt 0in'>
 <p style='margin-bottom:3.0pt;page-break-after:avoid;
 border:none;padding:0in' style="margin-top:0;margin-bottom:0">Php37</p>
 </div>
 </td>
 <td  colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <div style='border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 1.0pt 0in'>
 <p style='margin-bottom:3.0pt;page-break-after:avoid;
 border:none;padding:0in' style="margin-top:0;margin-bottom:0">Php42</p>
 </div>
 </td>
 </tr>
 <tr height=0>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Audit Fees</i>.  This category includes the audit
of our annual financial statements, review of interim financial statements and
services that are normally provided by the independent auditors in connection
with statutory and regulatory filings or engagements for those fiscal years.
This category also includes advice on audit and accounting matters that arose
during, or as a result of, the audit or the review of interim financial
statements and statutory audits required by non-U.S. jurisdictions, including
statutory audits required.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Tax Services.</i>  This category includes tax
compliance, tax advice and tax planning services performed by our independent
auditors in respect of Smart in 2003.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>All Other Fees</i>.  This category consists primarily
of fees for consultation with respect to our IAS adoption in 2004, risk
management review in respect of Smart&#146;s information security infrastructure,
due diligence review for certain projects and specialized trainings for <i>IAS
39 &#150; Financial Instruments</i> in 2003.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The fees presented above includes out-of-pocket expenses incidental
to our independent auditors&#146; work, which amounts do not exceed 5% of the
agreed-upon engagement fees.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our Audit Committee pre-approves all audit and non-audit
services as these are proposed or endorsed before these services are performed
by our independent auditors.  </p>

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0"><a name="_Toc46082321">&nbsp;</a></p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779261">Item 16D.  Exemption
from the listing Standards for Audit Committees</a></p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.3in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Not applicable.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779262">Item 16E.   Purchases
of Equity Securities by the Issuer and Affiliated Purchaser</a></p>

<p style='line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.3in;margin-bottom:.0001pt;text-indent:-.3in;line-height:normal' style="margin-top:0;margin-bottom:0">Not applicable.</p>

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0"><a name="_Toc75779263">PART III</a></p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc46082322"></a><a name="_Toc75779264">Item 17.     Financial Statements</a> </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Not applicable.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779265">Item 18.     Financial
Statements</a></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Index to Financial Statements</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse'>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b><u>Page</u></b></p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;margin-right:.5in;margin-bottom:
 3.0pt;margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">PHILIPPINE
 LONG DISTANCE TELEPHONE COMPANY AUDITED ANNUAL FINANCIAL STATEMENTS</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-bottom:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:3.0pt' style="margin-top:0;margin-bottom:0">Report
 of Independent Auditors</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-bottom:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0">150</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:3.0pt;line-height:normal' style="margin-top:0;margin-bottom:0">Balance Sheets as at December 31, 2004 and 2003</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-bottom:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0">151</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:3.0pt' style="margin-top:0;margin-bottom:0">Statements
 of Income for the Years Ended December
 31, 2004, 2003 and 2002</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-bottom:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0">152</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:3.0pt;
 margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Statements
 of Changes in Stockholders' Equity for the Years Ended December 31, 2004, 2003
 and 2002</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-bottom:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0">153</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:3.0pt' style="margin-top:0;margin-bottom:0">Statements
 of Cash Flows for the Years Ended December 31, 2004, 2003 and 20022</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-bottom:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0">154</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:3.0pt' style="margin-top:0;margin-bottom:0">Notes
 to Financial Statements</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-bottom:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0">155</p>
 </td>
 </tr>
</table></center></div>

<p style='line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc75779266">Item 19.     Exhibits</a></p>

<p style='line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">See
Item 18 above for details of the financial statements filed as part of this
annual report.</p>

<p style='line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Exhibits
to this report:</p>

<p style='line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:99.66%;margin-left:5.4pt;border-collapse:collapse'>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1(a).</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Articles of Incorporation and By-laws</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1(b).</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">By-Laws (as amended January 25,
 2005)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2.</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">We have not included as exhibits certain instruments with respect to
 our long-term debt, the amount of debt authorized under each of which does
 not exceed 10% of out total assets, and we agree to furnish a copy of any
 such instrument to the Securities and Exchange Commission upon request.</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4.</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Material Contracts</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6.</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Computation of Earnings per Share</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7.</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Calculation of Ratio of Earnings to Fixed Charges</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8.</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Subsidiaries</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12.1</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Certification of Chief Executive Officer required by Rule 13a-14(a) of
 the Exchange Act </p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12.2</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Certification of the Principal Financial Officer required by Rule
 13a-14(a) of the Exchange Act</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">13.1</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Certification of Chief
 Executive Officer required by Rule 13a-14(b) of the Exchange Act</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">13.2</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Certification of the
 Principal Financial Officer required by Rule 13a-14(b) of the Exchange Act</p>
 </td>
 </tr>
</table></center></div>

<br clear=all
style='page-break-before:always'>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
normal' style="margin-top:0;margin-bottom:0">SIGNATURE</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;text-indent:.5in' style="margin-top:0;margin-bottom:0">The registrant hereby certifies that it meets all of
the requirements for filing on Form 20-F and that it has duly caused and
authorized the undersigned to sign this annual report on its behalf.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align=right>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse;border-collapse:collapse !msorm'>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  colspan=3 valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">PHILIPPINE LONG DISTANCE TELEPHONE COMPANY</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style=';margin-right:.8pt' style="margin-top:0;margin-bottom:0">By:</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">                /s/
 Ma. Lourdes C. Rausa-Chan</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style=';text-align:
 center' style="margin-top:0;margin-bottom:0">MA. LOURDES C. RAUSA-CHAN</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .1in;text-align:right' style="margin-top:0;margin-bottom:0">Senior Vice President,
 Corporate Affairs and Legal </p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style=';text-align:
 center' style="margin-top:0;margin-bottom:0">Services Head and Corporate Secretary</p>
 </td>
 </tr>
</table></center></div>

</div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Date:  June 30, 2005</p>

<b><br
clear=all style='page-break-before:always'>
</b>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779267"></a><a name="_Toc67395411">EXHIBIT INDEX</a></p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse'>

 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal;page-break-after:auto' style="margin-top:0;margin-bottom:0"><a name="_Toc46082326">Exhibit<br>
 Number</a></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:45.0pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Description of Exhibit</b></p>
 </td>
 </tr>

 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">1(a)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Articles of Incorporation
 (incorporated by reference to PLDT's Form 20-F as filed with the Securities
 and Exchange Commission in May 2001)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">1(b)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">By-Laws (as amended on January 25, 2005)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">We have not included as
 exhibits certain instruments with respect to our long-term debt, the amount
 of debt authorized under each of which does not exceed 10% of out total
 assets, and we agree to `furnish a copy of any such instrument to the
 Securities and Exchange Commission upon request.</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">4(a)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Stock Purchase and Strategic
 Investment Agreement, dated September 28, 1999, by and among PLDT, First
 Pacific Limited, Metro Pacific Corporation, Metro Pacific Asia Link Holdings,
 Inc., Metro Pacific Resources, Inc. and NTT Communications Corporation
 (incorporated by reference to PLDT's Form 6-K for the month of September 1999
 [2])</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">4(b)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Executive Stock Option Plan
 (incorporated by reference to PLDT's Form 20-F as filed with the Securities
 and Exchange Commission in May 2001)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">4(c)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Master Restructuring
 Agreement, dated June 21, 2000, as amended on December 12, 2000 and December
 19, 2000, between Piltel, Piltel (Cayman) Limited, PLDT, The Chase Manhattan
 Bank, as escrow agent, Metropolitan Bank and Trust Company, as administrative
 agent and the creditors named therein (incorporated by reference to PLDT's
 Form 20-F as filed with the Securities and Exchange Commission in May 2001)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Computation of Earnings per
 Share</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Calculation of Ratio of
 Earnings to Fixed Charges </p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Subsidiaries </p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">12.1</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Certification of Chief
 Executive Officer required by Rule 13a-14(a) of the Exchange Act </p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">12.2</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Certification of the
 Principal Financial Officer required by Rule 13a-14(a) of the Exchange Act</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">13.1</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Certification of Chief
 Executive Officer required by Rule 13a-14(b) of the Exchange Act</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">13.2</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Certification of the
 Principal Financial Officer required by Rule 13a-14(b) of the Exchange Act</p>
 </td>
 </tr>
</table></center></div>

<p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<b><br clear=all
style='page-break-before:always'>
</b>

<p align=right style='text-align:right;line-height:10.0pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>EXHIBIT 1(b)</b></p>

<p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">PHILIPPINE LONG DISTANCE
TELEPHONE COMPANY</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">By-Laws
(as amended on January 25, 2005)</p>

<p align=right style='text-align:right;line-height:10.0pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p align=right style='text-align:right;line-height:10.0pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse;border-collapse:collapse !msorm'>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 <p style="margin-top:0;margin-bottom:0">Adopted January</p>
 <p style="margin-top:0;margin-bottom:0">Amended April</p>
 <p style="margin-top:0;margin-bottom:0">Amended January</p>
 <p style="margin-top:0;margin-bottom:0">Amended April</p>
 <p style="margin-top:0;margin-bottom:0">Amended April</p>
 <p style="margin-top:0;margin-bottom:0">Amended July</p>
 <p style="margin-top:0;margin-bottom:0">Amended May</p>
 <p style="margin-top:0;margin-bottom:0">Amended January</p>
 <p style="margin-top:0;margin-bottom:0">Amended July</p>
 <p style="margin-top:0;margin-bottom:0">Amended January</p>
 <p style="margin-top:0;margin-bottom:0">Amended January</p>
 <p style="margin-top:0;margin-bottom:0">Amended June</p>
 <p style="margin-top:0;margin-bottom:0">Amended July</p>
 <p style="margin-top:0;margin-bottom:0">Amended April</p>
 <p style="margin-top:0;margin-bottom:0">Amended January</p>
 <p style="margin-top:0;margin-bottom:0">Amended March</p>
 <p style="margin-top:0;margin-bottom:0">Amended February</p>
 <p style="margin-top:0;margin-bottom:0">Amended February</p>
 <p style="margin-top:0;margin-bottom:0">Amended March</p>
 <p style="margin-top:0;margin-bottom:0">Amended February</p>
 <p style=';margin-left:0in;
 text-align:justify;text-indent:0in' style="margin-top:0;margin-bottom:0">Amended January</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 <p style="margin-top:0;margin-bottom:0">10,</p>
 <p style="margin-top:0;margin-bottom:0">26,</p>
 <p style="margin-top:0;margin-bottom:0">05,</p>
 <p style="margin-top:0;margin-bottom:0">16,</p>
 <p style="margin-top:0;margin-bottom:0">15,</p>
 <p style="margin-top:0;margin-bottom:0">26,</p>
 <p style="margin-top:0;margin-bottom:0">08,</p>
 <p style="margin-top:0;margin-bottom:0">27,</p>
 <p style="margin-top:0;margin-bottom:0">25,</p>
 <p style="margin-top:0;margin-bottom:0">10,</p>
 <p style="margin-top:0;margin-bottom:0">30,</p>
 <p style="margin-top:0;margin-bottom:0">25,</p>
 <p style="margin-top:0;margin-bottom:0">11,</p>
 <p style="margin-top:0;margin-bottom:0">18,</p>
 <p style="margin-top:0;margin-bottom:0">25,</p>
 <p style="margin-top:0;margin-bottom:0">29,</p>
 <p style="margin-top:0;margin-bottom:0">24,</p>
 <p style="margin-top:0;margin-bottom:0">29,</p>
 <p style="margin-top:0;margin-bottom:0">29,</p>
 <p style="margin-top:0;margin-bottom:0">26,</p>
 <p style="margin-top:0;margin-bottom:0"><b>25</b>,</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 <p style="margin-top:0;margin-bottom:0">1938</p>
 <p style="margin-top:0;margin-bottom:0">1939</p>
 <p style="margin-top:0;margin-bottom:0">1940</p>
 <p style="margin-top:0;margin-bottom:0">1947</p>
 <p style="margin-top:0;margin-bottom:0">1953</p>
 <p style="margin-top:0;margin-bottom:0">1955</p>
 <p style="margin-top:0;margin-bottom:0">1962</p>
 <p style="margin-top:0;margin-bottom:0">1964</p>
 <p style="margin-top:0;margin-bottom:0">1966</p>
 <p style="margin-top:0;margin-bottom:0">1968</p>
 <p style="margin-top:0;margin-bottom:0">1968</p>
 <p style="margin-top:0;margin-bottom:0">1968</p>
 <p style="margin-top:0;margin-bottom:0">1969</p>
 <p style="margin-top:0;margin-bottom:0">1979</p>
 <p style="margin-top:0;margin-bottom:0">1983</p>
 <p style="margin-top:0;margin-bottom:0">1983</p>
 <p style="margin-top:0;margin-bottom:0">1998</p>
 <p style="margin-top:0;margin-bottom:0">2000</p>
 <p style="margin-top:0;margin-bottom:0">2001</p>
 <p style="margin-top:0;margin-bottom:0">2003</p>
 <p style="margin-top:0;margin-bottom:0"><b>2005</b></p>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
</table></center></div>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<br
clear=all style='page-break-before:always'>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">PHILIPPINE
LONG DISTANCE TELEPHONE COMPANY</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">AMENDED
BY - LAWS</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">ARTICLE
I</p>

<p style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">OFFICE</h1>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
1.  The principal office of the corporation shall be in Metro Manila,
Philippines.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*Amended
on June 25, 1968 and February 29, 2000)</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">ARTICLE II</h1>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">MEETINGS</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
1.  The annual meeting of the stockholders shall be held at the principal
office of the corporation or at such other place designated by the Board of
Directors in the city or municipality where the principal office of the
corporation is located on the second Tuesday in June of each year, at 4 o&#146;clock P.M. The Board of Directors may, for good cause, postpone the annual meeting of
stockholders to a reasonable date. </p>

<p style='line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">         Written
or printed notice of every annual stockholders&#146; meeting, which notice shall
state the date, time and place of the meeting and the purpose or purposes for
which the meeting is called, shall be given by the Secretary or by the
Assistant Secretary to each stockholder.  Such notice may be delivered to the
stockholders personally, or enclosed in an envelope with the postage thereon
fully prepaid, addressed to each stockholder at his or her last known place of
residence or business, and posted at a Post Office in the Philippines or in the
 United States of America.  Such delivery or mailing of notice must be made at
least fifteen (15) business days before the date fixed for the meeting.  No
publication of notice of any regular or special meeting of stockholders in the
public newspapers shall be required.</p>

<p align=center style='margin-right:3.25pt;text-align:center;
line-height:150%' style="margin-top:0;margin-bottom:0">(*Amended on July 26, 1955, February 24, 1998 and March 29, 2001)</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
2.  Special meetings of the stockholders may be called at any time by the
President or three (3) of the Directors or by any number of stockholders representing
two-thirds (2/3) of the subscribed capital stock.  Notice in writing of such
meeting, stating the date, time and place thereof, and the purpose or purposes
for which such meeting is called shall be given to each stockholder by the
Secretary or Assistant Secretary or in case of his absence, inability, refusal
or neglect to act, then by the President, Directors or stockholders calling the
said meeting.  Such notice may be delivered to the stockholders personally or
enclosed in an envelope and addressed, with the postage thereon fully prepaid,
to each stockholder at his or her last known place of residence or business and
posted at a Post Office in the Philippines or the United States of America.
Such delivery or mailing of notice must be made at least fifteen (15) business
days before the date fixed for the meeting and the statement of service by such
delivery or mailing shall be entered upon the minutes of meeting and the said
minutes upon being read and approved at a subsequent meeting of the stockholders
shall be conclusive on the question of service.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*Amended
on July 26, 1955, February 24, 1998 and March 29, 2001)</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
3.  Every meeting of the stockholders shall be presided by the President or, in
his absence, by a chairman to be chosen by the stockholders representing a
majority of the shares of the corporation issued and outstanding and entitled
to vote present or duly represented at said meeting.  The Secretary or, in his
absence, the Assistant Secretary, shall act as secretary of every meeting but
if neither the Secretary nor the Assistant Secretary is present, the chairman
of the meeting shall appoint a secretary of the meeting.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*New
provision adopted on March 29, 2001)</p>

<p style='line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
4.  A meeting of the Board of Directors shall be held promptly after the
adjournment of the annual meeting of the stockholders; subsequent regular
meetings shall be held monthly on the last Tuesday of each month at 9:30 A. M.,
at the office of the corporation in Metro Manila, Philippines or such other
time and place in or outside the Philippines as the Board of Directors may from
time to time determine.  Special meetings may be called by the President
whenever he may think proper, and he shall forthwith call such meetings
whenever requested in writing to do so by any three (3) Directors.  Such
meetings shall be called for a date not later than seven (7) days from the date
of such request.  Notice in writing of every special meeting of the Board of
Directors, stating the date and place thereof and the purpose or purposes for
which the meeting is called, shall be given to each Director by the Secretary
or Assistant Secretary, or in case of his absence, inability, refusal or
neglect to act, by any person appointed for that purpose by the President or
three (3) of the Directors.  Such notice may be delivered to each Director
personally, by telegraph, facsimile, e-mail, or other means of written or
printed communication generally accepted and used by the business community as
at present available or be made available through technical advances or
innovations in the future, at least twenty-four (24) hours previous to the time
fixed for the meeting, or may be given by enclosing a notice in an envelope,
with the postage thereon fully prepaid, addressed to each Director at his last
known place of residence or business and posted at least three (3) days before
the date fixed for the meeting.  Service of notice, by delivery, telegraph,
facsimile, e-mail, or other means of written or printed communication generally
accepted and used by the business community as at present available or be made
available through technical advances or innovations in the future, shall be
entered upon the minutes of the meeting, and said minutes, upon being read and
approved at a subsequent meeting of the Board, shall be conclusive upon the
question of service.  Notice of regular meetings of the Board of Directors is
hereby dispensed with.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*Amended
on January 5, 1940, May 8, 1962, January 30, 1968,</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">July 11, 1969, February 24, 1998, February 29, 2000 and March 29, 2001)</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
5.   Every meeting of the Board of Directors shall be presided by the Chairman
of the Board or, in his absence, the President, or in his absence, by any
Director chosen by majority of the members of the Board present at such meeting
at which there is a quorum.  The Secretary or, in his absence, the Assistant
Secretary, shall act as secretary of every meeting but if neither the Secretary
nor the Assistant Secretary is present, the chairman of the meeting shall
appoint a secretary of the meeting.</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">(*New provision
adopted on March 29, 2001)</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
6.  If any regular meeting of stockholders or Board of Directors provided for
herein shall fall on a legal holiday, then such meeting shall be held on the
next succeeding business day at the same hour; but special meetings of the
stockholders or Directors may be held upon a holiday with the same force and
effect as if held upon a business day.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*Amended
on March 29, 2001)</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
7.  Meetings of the stockholders shall be held at the principal office of the
corporation or at such other place designated by the Board of Directors in the
city or municipality where the principal office of the corporation is located.
Meetings of the Board of Directors shall be held at the principal office of the
corporation or at such other place in or outside the Philippines as the Board,
from time to time, may determine.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*Amended
on May 8, 1962, July 11, 1969, February 29, 2000 and March 29, 2001)</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">ARTICLE
III</p>

<p style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">QUORUM AND
VOTING REQUIREMENTS</h1>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
1.  At any meeting of the stockholders, persons representing, in person or by
proxy, a majority of the shares of the corporation issued and outstanding and
entitled to vote at the said meeting shall constitute a quorum for the
transaction of any business, except as otherwise provided by law.  In the
absence of a quorum, the President or, in his absence, any person entitled to
preside or act as secretary of the meeting shall have the power to adjourn the
meeting from time to time until the requisite number of shares to constitute a
quorum is present or represented. When a meeting of the stockholders is
adjourned to another time or place, it shall not be necessary to give notice of
the adjourned meeting if the time and place to which the meeting is adjourned
are announced at the<u> </u>meeting at which the adjournment was taken.  At the
reconvened meeting, any business may be transacted that could have been
transacted on the original date of the meeting.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*Amended
on March 29, 1983 and March 29, 2001)</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
2.  At any meeting of the stockholders at which there is quorum, all matters
approved by the stockholders representing a majority of the issued and
outstanding shares of the corporation entitled to vote present in person or by
proxy at such meeting shall be valid as a corporate act, except for such
matters which require the vote of the stockholders representing a higher
percentage of the outstanding shares as prescribed by statute or these By-Laws.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*New
provision adopted on March 29, 2001)</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0"> </p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
3.  Each stockholder is entitled to one vote for each share of stock held by
him, where such stock has voting rights on the matter under consideration, and
such stock may be represented by the holder thereof or by his attorney duly
authorized by proxy executed in writing on forms prescribed by the Board of
Directors which shall be furnished to a stockholder upon his request.  Unless
otherwise provided in the proxy, it shall be valid only for the meeting in
respect of which such proxy was issued.  Proxies must be filed with the
Secretary, Assistant Secretary or transfer agent of the corporation at least
two (2) days before the day of the meeting.  Any proxy filed with the
Secretary, Assistant Secretary or transfer agent of the corporation may be
revoked by the stockholder concerned either in an instrument in writing duly
presented to the Secretary, Assistant Secretary or transfer agent of the
corporation at least two (2) days before the day of the meeting or by his
personal presence at the meeting.  The decision of the Secretary on the
validity of proxies shall be final and binding until and unless set aside by a
court of competent jurisdiction.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*Amended
on March 29, 1983, February 24, 1998 and March 29, 2001)</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
4.  At every election of Directors, each holder of stock which has voting
rights for the election of Directors is entitled to one vote for each share of
such stock held by him for as many persons as there are Directors to be
elected, or to cumulate said shares and give one (1) candidate as many votes as
the number of Directors multiplied by the number of his share shall equal, or
to distribute such votes on the same principle among as many candidates as he
shall think fit.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*
Amended on March 29, 1983, February 24, 1998 and March 29, 2001)</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
5.  The Board of Directors shall have the power to close the stock transfer
books of the corporation for the following periods:  (a) not exceeding sixty
(60) days preceding the date of any meeting of stockholders or the date for the
allotment of rights or the date when any change or conversion or exchange of
capital stock shall go into effect or a date in connection with obtaining the
consent of stockholders for any purpose; and (b) not exceeding forty five (45)
days preceding the date of payment of any dividend; provided, however, that in
lieu of closing the stock transfer books as aforesaid, the Board of Directors
may fix in advance a date as follows:  (a) not exceeding sixty (60) days
preceding the date for any meeting of stockholders or the date for the allotment
of rights, or the date when any change or conversion or exchange of capital
stock shall go into effect, or a date in connection with obtaining such
consent; and (b) not exceeding forty five (45) days preceding the date of
payment of any dividend; as a record date for the determination of the
stockholders entitled to notice of, and to vote at, any such meeting, and any
adjournment thereof, or to any such allotment of rights, or to exercise the
rights in respect of any such change, conversion or exchange of capital stock,
or to give such consent, or entitled to receive payment of any such dividend,
and in such case, such stockholders, and only such stockholders as shall be
stockholders of record on the date so fixed, shall be entitled to such notice
of, and to vote at, such meeting, and any adjournment thereof, or to receive
such allotment of rights, or to exercise such rights, or to give such consent,
or to receive payment of such dividend, as the case may be, notwithstanding any
transfer of any stock on the books of the corporation after any such record
date fixed as aforesaid.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*Amended
on July 26, 1955, February 24, 1998 and March 29, 2001)</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
6.  At any meeting of the Board of Directors, a majority of the number of the
Directors as specified in the Articles of Incorporation shall constitute a
quorum for the transaction of business.  In the absence of a quorum, a majority
of the Directors present may adjourn any meeting from time to time until a
quorum be had.  Notice of any adjourned meeting need not be given.</p>

<p align=center style='text-align:center;line-height:150%;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">(*New provision adopted on March 29, 2001)</p>

<p style='line-height:150%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;
line-height:150%' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">*   Section
7.  At any meeting of the Board of Directors
at which there is a quorum, all matters approved by at least a majority of the Directors
present at such meeting shall be valid as a corporate act, except for such
matters which require the vote of majority of all the members of the Board as
prescribed by statute or these By-Laws.  </h1>

<p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:150%;page-break-after:
auto' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">(*New Provision Adopted On March 29, 2001)</h1>

<p style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">ARTICLE IV</h1>

<p align=center style='text-align:center;line-height:150%;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">CAPITAL STOCK</p>

<p style='text-align:justify;line-height:150%;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">*       Section 1.  The certificate of stock shall be in such form and
device as may be prescribed by the Board of Directors from time to time.</p>

<p align=center style='text-align:center;line-height:150%;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">(*Amended on April 15, 1953)</p>

<p style='text-align:justify;line-height:150%;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
2.  The person, firm or corporation in whose name the stock stands on the books
of the corporation, whether individually or as trustee, pledgee, or otherwise,
may be recognized and treated by the corporation as the absolute owner of the
stock, and the corporation shall in no event be obliged to deal with or to
recognize the rights or interests of other persons in such stock or in any part
thereof.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*Amended
on April 15, 1953)</p>

<p style='line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
3.  Certificates shall be issued in the manner prescribed by law to each
stockholder, showing the number of shares to which he is entitled; and said
certificates, and the shares named therein shall be transferable only upon the
books of the corporation by the shareholder named in the certificate, or his
duly authorized attorney or representative.  The Board of Directors shall
appoint one or more registration agents of the corporation and no certificate
for any share of stock shall be delivered to any stockholder until there is
endorsed thereon a certificate of one of the registrars, showing such
certificate to have been duly registered.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*Amended
on April 15, 1953)</p>

<p style='line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
4.  No new certificates of any share shall be issued until the old certificate,
representing the same, has been surrendered and cancelled; provided, however,
that in case of lost, stolen or destroyed certificates of stock, the following
procedure shall be followed for the issuance by the corporation of new
certificates in lieu of those lost, stolen or destroyed:</p>

<p style='line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;text-indent:27.0pt;line-height:
150%' style="margin-top:0;margin-bottom:0">(a)  The registered owner of certificates of stock in this corporation or
his legal representative shall file an affidavit, in triplicate, with this
corporation setting forth, if possible, the circumstances as to how, when and
where said certificates were lost, stolen or destroyed, the number of shares
represented by each certificate and the serial number of the certificates.  He
shall submit such other information and evidence which he may deem necessary.</p>

<p style='line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-align:justify;
text-indent:27.0pt;line-height:150%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(b)  After verifying the affidavit
and other information and evidence with the books of this corporation, this
corporation shall publish a notice, in a newspaper of general circulation in
the Philippines published in the <b><u>place where this corporation has its
principal office</u></b>, once a week for three (3) consecutive weeks, at the
expense of the registered owner of the certificates of stock which have been
lost, stolen or destroyed.  The notice shall state the name of this corporation,
the name of the registered owner and the serial number of said certificates,
and the number of shares represented by each certificate, and that after the
expiration of one (1) year from the date of the last publication, if no contest
has been presented to this corporation regarding said certificates of stock,
the right to make such contest shall be barred and this corporation shall
cancel in its books the certificates of stock which have been lost, stolen or
destroyed and issue in lieu thereof new certificates of stock, unless the
registered owner files a bond or other security in lieu thereof as may be
required running for a period of one (1) year for a sum and in such forms and
with such sureties as may be satisfactory to the Board of Directors, in which
case a new certificate may be issued even before the expiration of the one (1)
year period provided herein:  Provided,  That if a contest has been presented
to this corporation or if an action is pending in court regarding the ownership
of said certificates of stock which have been lost, stolen or destroyed, the
issuance of the new certificates of stock in lieu thereof shall be suspended
until final decision by the court regarding the ownership of said certificates
of stock.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*Amended
on April 15, 1953 <b>and </b><b>January 25, 2005</b>)</p>

<p style='line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
5.  Certificates of stock shall be signed by the President or Vice President
and the Secretary or an Assistant Secretary of the corporation and sealed with
the corporate seal; provided, however, that where any such certificate is
signed by a transfer agent and by a registrar, the signatures of any such
President, Vice President, Secretary or Assistant Secretary and the seal of the
corporation upon such certificate may be facsimiles, engraved or printed.  In
case any officer or officers who have signed, or whose facsimile signature or
signatures have been used on, any such certificate or certificates shall cease
to be such officer or officers of the corporation, whether because of death,
resignation or otherwise, before such certificate or certificates have been
delivered by the corporation, such certificate or certificates may nevertheless
be adopted by the corporation and be issued and delivered as though the person
or persons who signed such certificate or certificates or whose facsimile
signature or signatures have been used thereon had not ceased to be such
officer or officers of the corporation.  A transfer agent of the corporation
may sign certificates of stock by facsimile signature provided the use thereof
is permitted by the stock exchange on which the corporation&#146;s stock is listed
and by the corporation&#146;s other transfer agents.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*Amended
on April 15, 1953, July 26, 1955 and July 11, 1969)</p>

<p style='line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
6.  The corporation shall not issue any stock certificate evidencing, either
singly, or with other shares, any fractional part of a share, or any undivided
interest in any share.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*Amended
on April 15, 1953)</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">ARTICLE
V</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">DIRECTORS</p>

<p style='line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
1.  The Board of Directors shall consist of thirteen (13) members, each of whom
must hold at least one (1) share of the stock of the corporation in his own
name on the books of the corporation.  Directors shall be elected from among
the stockholders at their annual meeting or at any meeting held in lieu thereof
for that purpose.  Each Director shall hold office until the annual meeting of
stockholders held next after his election and until his successor shall have
been elected and qualified, except in case of death, resignation,
disqualification or removal from office.</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">         There
shall be at least two (2) Independent Directors or such Independent Directors
as shall constitute at least twenty percent (20%) of the members of the Board
of Directors, whichever is lesser.  An &#147;Independent Director&#148; is a director
independent of management and who, apart from his fees and shareholdings, is
free from any business or other relationship with the corporation which could,
or could reasonably be perceived to, materially interfere with his exercise of
independent judgment in carrying out his responsibilities as a director of the
corporation and includes, among other persons, one who:</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-indent:-.5in;line-height:
150%' style="margin-top:0;margin-bottom:0">(a)        is not a director or officer
of the corporation or any of its related companies or any of its substantial
shareholders (other than as an Independent Director of any of the foregoing);</p>

<p style='margin-left:.5in;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-indent:-.5in;line-height:
150%' style="margin-top:0;margin-bottom:0">(b)        is not a substantial
shareholder of the corporation or any of its related companies or any of its
substantial shareholders;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in;line-height:150%' style="margin-top:0;margin-bottom:0">(c)        is not a relative of any director, officer
or substantial shareholder of the corporation, or any of its related companies
or any of its substantial shareholders.  For this purpose, &#147;relatives&#148; includes
spouse, parent, child, brother, sister, and the spouse of such child, brother
or sister;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>

<p style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in;line-height:150%' style="margin-top:0;margin-bottom:0">(d)        is not acting as a nominee or representative
of any director, or officer or substantial shareholder of the corporation, or
any of its related companies or any of its substantial shareholders;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in;line-height:150%' style="margin-top:0;margin-bottom:0">(e)        has not been employed in any executive
capacity by the corporation, or any of its related companies or any of its
substantial shareholders within the last five (5) years;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in;line-height:150%' style="margin-top:0;margin-bottom:0">(f)        is not retained, or within the last five (5)
years has not been retained, as a professional adviser by the corporation, or
any of its related companies or any of its substantial shareholders, either
personally or through his firm;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in;line-height:150%' style="margin-top:0;margin-bottom:0">(g)        has not engaged and does not engage in any
transaction with the corporation or with any of its related companies or with
any of its substantial shareholders, whether by himself or with other persons
or through a firm of which he is a partner or a company of which he is a
director or substantial shareholder, other than the transactions which are
conducted at arm&#146;s length and are immaterial;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>

<p style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in;line-height:150%' style="margin-top:0;margin-bottom:0">(h)        is not employed as an officer or executive
of another entity where any of the corporation&#146;s officers or executives serves
on that entity&#146;s Compensation Committee; or</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in;line-height:150%' style="margin-top:0;margin-bottom:0">(i)         is not affiliated with or employed by or,
within the last five (5) years, has not been affiliated with or employed by the
corporation&#146;s present or former external auditors or their affiliates.</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0"><u>&nbsp;</u></p>

<p style='text-align:justify;text-indent:27.0pt;line-height:
150%' style="margin-top:0;margin-bottom:0">When used in relation to a Company,
&#147;related company&#148; means another company which is: (i) its holding company, (ii)
its subsidiary, or (iii) a subsidiary of its holding company; and &#147;substantial
shareholder&#148; means any person who is directly or indirectly the beneficial
owner of more than ten percent (10%) of any class of its equity security.</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">         A
Director or any person nominated for election to the Board of Directors must
possess the following minimum qualifications as determined by the Nomination
Committee <b><u>or any other committee</u></b> constituted by the Board of
Directors <b><u>that, by its charter as approved by the Board of Directors, is
vested with the duties and responsibilities of a nomination committee</u>:</b></p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0"><u>&nbsp;</u></p>

<p style='margin-left:1.0in;text-indent:-.5in;line-height:
150%' style="margin-top:0;margin-bottom:0">(a)        at least a college graduate, or
in the absence of such college degree or formal education, sufficient
experience in managing a business;</p>

<p style='margin-left:.5in;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-indent:-.5in;line-height:
150%' style="margin-top:0;margin-bottom:0">(b)        at least twenty-one (21) years
old;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">(c)        proven
integrity and probity; and</p>

<p style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in;line-height:150%' style="margin-top:0;margin-bottom:0">(d)        assiduousness in the performance of duties. </p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>

<p style='margin-left:0in;text-align:justify;
text-indent:0in;line-height:150%' style="margin-top:0;margin-bottom:0">         No person shall qualify or be eligible for nomination or
election to the Board of Directors if he is engaged in any business that
competes with or is antagonistic to that of the corporation or its
subsidiaries.  Without limiting the generality of the foregoing, a person shall
be deemed to be so engaged:</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-align:justify;
text-indent:-.5in;line-height:150%;punctuation-wrap:hanging;text-autospace:
ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If he is an employee, officer, manager or controlling person, or the
owner (either of record or beneficially) of ten per cent (10%) or more of any
outstanding class of shares, of any corporation (other than one in which this
corporation owns at least thirty per cent (30%) of the capital stock) or entity
engaged in a business that the Board of Directors, by at least a majority vote,
determines to be competitive or antagonistic to that of this corporation or any
of its subsidiaries; or</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in;line-height:150%;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If he is an employee, officer, manager or controlling person, or the
owner (either of record or beneficially) of ten per cent (10%) or more of any
outstanding class of shares, of any corporation or entity engaged in any line
of business of this corporation or any of its subsidiaries, when in the<u> </u>judgment
of the Board of Directors, by at least a majority vote, the laws against
combinations and restraint of trade shall be violated by such person&#146;s
membership in the Board of Directors; or</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in;line-height:150%;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If the Board of Directors, in the exercise of its judgment in good
faith, determines, by at least a majority vote, that he is a nominee of any
person set forth in (i) and (ii) above.</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-indent:0in;line-height:150%' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">         In determining whether or not a person is a
controlling person, beneficial owner, or the nominee of another, the Board of
Directors may take into account such factors as business and family
relationships.</h3>

<p style='margin:0in;margin-bottom:.0001pt;text-indent:0in;line-height:150%' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">&nbsp;</h3>

<p style='margin:0in;margin-bottom:.0001pt;text-indent:0in;line-height:150%' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">         In addition, no person shall qualify or be
eligible for nomination or election to the Board of Directors if he is
suffering from any of the following grounds for disqualification:</h3>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-indent:-.5in;line-height:150%' style="margin-top:0;margin-bottom:0">(a)        conviction
by final judgment of an offense involving moral turpitude or similar fraudulent
acts or transgressions;</p>

<p style='line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-indent:-.5in;line-height:150%' style="margin-top:0;margin-bottom:0">(b)        conviction
by final judgment of an offense punishable by imprisonment for a period
exceeding six (6) years, or a violation of the Corporation Code committed
within five (5) years prior to the date of election as a director;</p>

<p style='margin-left:.5in;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;line-height:150%' style="margin-top:0;margin-bottom:0">(c)        judicial
declaration of bankruptcy or insolvency;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-indent:-.5in;line-height:150%' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
final finding by the Philippine
Securities and Exchange Commission (Commission) or a Philippine court or
administrative body or other regulatory authority of competent jurisdiction of
having willfully violated, or willfully aided, abetted, counseled, induced or
procured the violation of, any provision of the Securities Regulations Code,
the Corporation Code or any other laws administered by the Commission or Bangko
Sentral ng Pilipinas (BSP), or any rule, regulation or order of the Commission
or BSP; and</h3>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:99.0pt;
margin-bottom:.0001pt;text-indent:0in;line-height:150%' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">&nbsp;</h3>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-indent:-.5in;line-height:150%' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">(e)        final finding by a foreign court or
administrative body or other regulatory authority of competent jurisdiction of
having committed the acts listed in the preceding clause (d) in violation of
the applicable laws, rules or regulations of the relevant foreign jurisdiction.</h3>

<p style='margin-left:99.0pt;text-indent:0in' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">&nbsp;</h3>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">         Except
as otherwise provided in the preceding paragraphs, the Nomination Committee <b><u>or
any other committee</u></b> constituted by the Board of Directors <b><u>that,
by its charter as approved by the Board of Directors, is vested with the duties
and responsibilities of a nomination committee</u></b> shall have the power and
authority to evaluate and decide whether any person nominated for election as a
Director has all the qualifications and none of the disqualifications specified
in the preceding paragraphs.  The Nomination Committee <b><u>or any other
committee</u></b> constituted by the Board of Directors<b><u> that, by its
charter as approved by the Board of Directors, is vested with the duties and
responsibilities of a nomination committee</u></b> shall also have the power
and authority to determine such<b> </b>other criteria for qualification and
disqualification of Directors or persons nominated for election to the Board of
Directors, including grounds for temporary disqualification of Directors.</p>

<p style='margin:0in;margin-bottom:.0001pt;text-indent:0in;line-height:150%' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">&nbsp;</h3>

<p style='margin:0in;margin-bottom:.0001pt;text-indent:0in;line-height:150%' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">         For the proper implementation of this
provisions of this Section, all nominations for election of directors by the
stockholders shall be submitted in writing to the Board of Directors through
the President and the Secretary at this corporation&#146;s principal place of
business at least sixty (60) working days before the regular or special meeting
of stockholders for the purpose of electing directors.</h3>

<p align=center style='margin-left:.2in;text-align:center;text-indent:0in' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">(*Amended on May 8, 1962, February 29, 2000
and March 29, 2001,</h3>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">February 26, 2003 <b>and </b><b>January 25, 2005</b>)</p>

<p style='line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
2.  In case of any vacancy in the Board of Directors for any cause or reason
whatsoever, other than removal by the stockholders or by expiration of the term
of office, the vacancy may be filled by the vote of at least a majority of the
remaining Directors then in office, if still constituting a quorum.  A Director
so elected to fill a vacancy shall hold office for the unexpired term of his
predecessor in office.  Any vacancy in the Board of Directors resulting from
the removal of a director by the stockholders in the manner provided by law may
be filled by election at the same meeting at which the removal took place or at
any annual or special meeting of stockholders called for the purpose after
giving notice as prescribed in these By-Laws.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*Amended
on May 8, 1962, January 10, 1968 and March 29, 2001)</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
3.  The Board of Directors may create an Executive Committee to be composed of
not less than three (3) members of the Board of Directors to be appointed by
the Board of Directors.  Such committee shall, except as may otherwise be
provided by law, have and exercise all the powers of the Board of Directors
during the intervals between the meetings of the full Board.  Such committee
may prescribe rules for its governance; its meetings may be held at such place
within the Philippines as it may determine or authorize, and majority of the
members of said committee at any meeting shall constitute a quorum.  In
addition to taking action at a meeting, the Executive Committee may validly act
upon the written consent of a majority of its members.  At each meeting of the
Board of Directors, the acts and proceedings of the Executive Committee since
the preceding meeting of the Board of Directors shall be submitted for such
action thereon as the Board may deem proper.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*Amended
on May 8, 1962, January 10, 1968 and March 29, 2001)</p>

<p style='line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;line-height:150%;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">         Section 4.  The corporation will not speculate in
its own or constituent companies&#146; securities, or permit similar speculations by
any of its constituent companies.</p>

<p style='text-align:justify;line-height:150%;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">*       Section 5.  The Board of Directors may create committees and
other bodies it may deem necessary or advisable in respect of the affairs of
the corporation.  The membership, powers, duties, functions and
responsibilities of such committees and bodies shall be prescribed by the Board
of Directors.  The members of such committees and bodies shall be appointed by
the Board of Directors for a term co-terminus with that of the Board of
Directors that appoints them unless sooner terminated or removed.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*New
provision effective February 24, 1998)</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">ARTICLE
VI</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">OFFICERS</p>

<p style='line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
1.  The officers of the corporation shall be a President, a Senior Executive <b><u>Vice
</u></b>President, one or more Executive Vice Presidents, one or more Senior
Vice Presidents, one or more First Vice Presidents, one or more Vice
Presidents, a Treasurer, one or more Assistant Treasurers, a Secretary, one or
more Assistant Secretaries, a Controller, and one or more Assistant
Controllers, all of whom shall be elected by the Board of Directors. </p>

<p style='line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">         Immediately
after the election of the Directors at the annual or special meeting called for
such purpose, the Board of Directors shall elect the officers of the
corporation.  The Board may also, in its discretion, elect a Chairman of the
Board.  Any two (2) or more positions may be held concurrently by the same
person, except that no one shall act as Chairman or President and Treasurer or
Secretary at the same time.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*Amended
on May 8, 1962, January 27, 1964, July 25, 1966,</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">April 18, 1979, January 25, 1983, March 29, 2001 <b>and </b><b>January 25, 2005</b>)</p>

<p style='line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">         Section
2.  The Board of Directors may appoint or elect such other officers as it shall
deem advisable, who shall, respectively, have such authority and perform such
duties as may be prescribed from time to time by the Board of Directors.</p>

<p style='line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">*       Section
3.  The term of office of all officers shall be co-terminus with that of the
Board of Directors that elects or appoints them except in case of death,
resignation, disqualification or removal from office.  </p>

<p align=center style='text-align:center;line-height:150%;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">(*New provision adopted on March 29, 2001)</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
4.  If any of the officers becomes vacant by reason of death, resignation,
failure to qualify, disqualification, removal from office or for any other
cause, the Board of Directors may elect a successor who shall hold office for
the unexpired term of his predecessor in office.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*New
provision adopted on March 29, 2001)</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">ARTICLE
VII</p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">CHAIRMAN OF THE
BOARD, PRESIDENT, SENIOR EXECUTIVE VICE PRESIDENT, EXECUTIVE VICE PRESIDENTS,
SENIOR VICE PRESIDENTS, FIRST VICE PRESIDENTS, AND VICE PRESIDENTS</p>

<p style='line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
1.  <u>Chairman of the Board.</u>  The Chairman of the Board (if there be one)
shall preside at all meetings of the Board of Directors.  He shall also
exercise such powers and perform such duties as the Board of Directors may
assign to him.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*Amended
on April 26, 1939, April 16, 1947 and March 29, 2001)</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
2.  <u>President.</u>  The President, who must be a director, shall be the
chief executive officer of the corporation.  He shall have general care,
supervision and management of the business and affairs of the corporation,
subject to the control of the Board of Directors.  He shall exercise such functions
and perform all duties incident to the office of the President and such other
duties as may, from time to time, be assigned to him by the Board or as
prescribed in these By-Laws.  He shall see that all orders and resolutions of
the Board are carried into effect, subject, however, to the right of the Board
to delegate any specific powers, except such as may be by statute exclusively
conferred on the President, to any other officer or officers of the
corporation.  He shall preside at all the meetings of the stockholders and, in
the absence of the Chairman of the Board, preside at the meetings of the Board
of Directors.</p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(*Amended on April 26, 1939, April 16, 1947, April
 15, 1953 and March 29, 2001)</p>

<p style='line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
3.  <u>The Senior Executive Vice President, Executive Vice Presidents, Senior
Vice Presidents, First Vice Presidents, and Vice Presidents.</u>  In the case
of absence or disability of the President, the Senior Executive Vice President
shall act as President and in case of his absence or disability, the Board shall
designate any of the Executive Vice Presidents to act as President, and perform
the duties and exercise the powers of the President.  The Senior Executive Vice
President, Executive Vice Presidents, Senior Vice Presidents, First Vice
Presidents and Vice Presidents shall perform such duties as the Board shall,
from time to time, prescribe.</p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(*Amended on April 26, 1969, January 27, 1964,</p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">April 18, 1979 and January 25, 1983)</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">&nbsp;</h1>

<p style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">ARTICLE VIII</h1>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">SECRETARY
AND ASSISTANT SECRETARY</p>

<p style='line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
1.  The Secretary shall make full and faithful record of the proceedings of all
meetings of the stockholders, Board of Directors and Executive Committee in
books to be kept for that purpose.  He shall give or cause to be given all
necessary notice of and materials for all meetings, have custody of the
corporate seal and affix it when authorized, preserve and keep all material
contracts, papers and documents, and keep or cause to be kept a list of all
stockholders.  The Secretary shall act as inspector at the election of Directors
and, as such, determine the number of shares of stock outstanding and entitled
to vote, the shares of stock represented at the meeting, the existence of a
quorum, the validity and effect of proxies, and receive votes, ballots and
consents, hear and determine all challenges and questions arising in connection
with the right to vote, count and tabulate votes, ballots, consents, determine
the results and do such acts as are proper to conduct the election or vote.
The Secretary may assign the exercise or performance of any or all of the
foregoing duties, powers and functions to any other person or persons, subject
always to his supervision and control.  The Secretary shall generally perform
such services and duties as are incident to his office and as the Board of
Directors or the President may from time to time prescribe or assign to him.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*Amended
on March 29, 2001)</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
2.  In the absence or disability of the Secretary, the Assistant Secretary
shall act in his place and perform his duties.  The Assistant Secretary shall
also perform such other duties as may, from time to time, be delegated to him
by the Secretary and as the Board of Directors or the President may prescribe
or assign to him.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*New
provision adopted on March 29, 2001)</p>

<p style='line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=center style='text-align:center;line-height:150%;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">ARTICLE IX</p>

<p align=center style='text-align:center;line-height:150%;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">TREASURER AND ASSISTANT TREASURER</p>

<p align=center style='text-align:center;line-height:150%;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">*       Section 1.  The Treasurer shall be the chief fiscal officer of
the corporation.  He shall discharge such duties and have such powers as the
Board of Directors or the President may prescribe or assign to him.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*Amended
on March 29, 2001)</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;text-indent:0in;
line-height:150%' style="margin-top:0;margin-bottom:0">*       Section 2.  In the absence or disability of the
Treasurer, the Assistant Treasurer shall act in his place and perform his
duties.  The Assistant Treasurer shall also perform such other duties as may
from time to time be delegated to him by the Treasurer and as the Board of
Directors or the President may prescribe or assign to him.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*New
provision adopted on March 29, 2001)</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">ARTICLE
X</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">INDEMNIFICATION
OF DIRECTORS/OFFICERS</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;text-indent:0in;
line-height:150%' style="margin-top:0;margin-bottom:0">         This corporation shall indemnify every director or
officer, his heirs, executors and administrators against all costs and expenses
reasonably incurred by such person in connection with any civil, criminal,
administrative or investigative action, suit or proceeding (other than an
action by this corporation) to which he may be, or is made, a party by reason
of his being or having been a director or officer of this corporation, except
in relation to matters as to which he shall be finally adjudged in such action,
suit or proceeding, to be liable for gross negligence, misconduct, or breach of
fiduciary duty.</p>

<p style='text-align:justify;text-indent:.5in;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;text-indent:27.0pt;line-height:
150%' style="margin-top:0;margin-bottom:0">In the event of a settlement or compromise, indemnification shall be
provided only in connection with such matters covered by the settlement as to
which this corporation is advised by counsel that the person to be indemnified
did not commit a breach of duty as such director or officer.</p>

<p style='text-align:justify;text-indent:.5in;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;text-indent:27.0pt;line-height:
150%' style="margin-top:0;margin-bottom:0">The amount payable by way of indemnity shall be determined and paid only
pursuant to a resolution adopted by a majority of all of the members of the
Board of Directors.</p>

<p style='text-align:justify;text-indent:.5in;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;text-indent:0in;
line-height:150%' style="margin-top:0;margin-bottom:0">         The costs and expenses incurred in defending the
aforementioned action, suit or proceeding may be paid by this corporation in
advance of the final disposition of such action, suit or proceeding, as
authorized in the manner provided for in the preceding paragraph, upon receipt
of an undertaking by or on behalf of the director or officer to repay such
amount, unless it shall ultimately be determined that he is entitled to be
indemnified by this corporation as authorized in this Article.</p>

<p align=center style='text-align:center;text-indent:.5in;
line-height:150%' style="margin-top:0;margin-bottom:0">(*New provision adopted on March 29, 2001)</p>

<p align=center style='text-align:center;text-indent:.5in;
line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=center style='text-align:center;line-height:150%;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">ARTICLE XI</p>

<p align=center style='margin-left:.5in;text-align:center;text-indent:0in' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">INDEPENDENT AUDITOR</h4>

<p style='text-align:justify;line-height:150%;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section 1.  The Audit Committee constituted
by the Board of Directors shall select and recommend the Independent Auditor
for appointment by the Board of Directors.  The Audit Committee shall also have
the authority to recommend the removal of the Independent Auditor by the Board
of Directors.  In case of resignation or removal of the Independent Auditor,
the Audit Committee shall, as soon as practicable, select and recommend a
replacement for appointment by the Board of Directors.</p>

<p align=center style='text-align:center;line-height:150%;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">(*New provision adopted on February 26, 2003)</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section 2.
The Independent Auditor selected and recommended by the Audit Committee
pursuant to Section 1 of this Article shall be appointed by the Board of
Directors at their regular meeting immediately following the annual meeting of
the stockholders of the corporation.  In case of resignation or removal of the
Independent Auditor, the new Independent Auditor selected and recommended by
the Audit Committee shall be appointed by the Board of Directors at any regular
or special meeting.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*Amended
on May 8, 1962, March 29, 2001 and February 26, 2003)</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">*ARTICLE
XII</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">BANKING
AND CONTRACTS</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
1.  All moneys belonging to the corporation shall be deposited in such bank or
banks as may be, from time to time, designated by the Board of Directors and
shall be withdrawn only on checks of the corporation signed by such
officer/officers of the corporation or by such person/persons as may be, from
time to time, designated by the Board of Directors.  Promissory notes, bills of
exchange, trade acceptances, drafts and other negotiable instruments shall be
signed and/or drawn in the name of the corporation by such officer/officers <b><u>of
the corporation or such person/persons</u></b> as may be, from time to time,
designated by the Board of Directors.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0"><b>(*Amended
on </b><b>January 25, 2005</b><b>)</b></p>

<p style='text-align:justify;text-indent:.5in;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
2.  All contracts, instruments or documents pertaining to transactions or
corporate actions authorized by the Board of Directors shall be signed in the
name of the corporation by such officer/officers <b><u>of the corporation or by
such person/persons</u></b> as may be, from time to time, designated by the
Board of Directors.  In the absence of any specific designation by the Board of
Directors, such contracts, instruments or documents shall be signed in the name
of the corporation by the President, or by any officer/<b><u>officers or
executive/executives</u></b> of the corporation <b><u>or any person/persons
duly</u></b> authorized by the President.  Contracts, instruments or documents
to be entered into in the ordinary course of business of the corporation which
do not require the approval of the Board of Directors may be signed by the
President or by any officer/<b><u>officers or executive/executives</u></b> of
the corporation <b><u>or any person/persons duly</u></b> designated by the
President, or by such officer/officers <b><u>or executive/executives of the
corporation or any person/persons duly</u></b> authorized for such purpose
under administrative orders approved by the President <b><u>and</u></b> in
effect at the relevant time.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*Amended
on March 29, 2001 <b>and </b><b>January 25, 2005</b>)</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">* ARTICLE XIII</p>

<p style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">FISCAL YEAR</h6>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">         Section
1.  The fiscal year in the business of the corporation shall be the calendar
year, extending from January first to December thirty-first inclusive, in each
year.</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-align:justify;
text-indent:0in;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section 2.  The corporation shall submit to the stockholders at
least fifteen (15) business days prior to the annual meeting, <b><u>a financial
report of the operations of the corporation for the preceding year, which shall
include financial statements, duly signed and certified by the corporation&#146;s
Independent Auditor</u></b>. </p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*Amended
on February 24, 1998, March 29, 2001, July 16, 2002 <b>and </b><b>January 25, 2005</b>)</p>

<p style='text-align:justify;text-indent:.5in;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=center style='text-align:center;text-indent:.5in;
line-height:150%' style="margin-top:0;margin-bottom:0">*ARTICLE XIV</p>

<p align=center style='text-align:center;text-indent:.5in;
line-height:150%' style="margin-top:0;margin-bottom:0">SEAL</p>

<p align=center style='text-align:center;text-indent:.5in;
line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-align:justify;
text-indent:0in;line-height:150%' style="margin-top:0;margin-bottom:0">         Section 1.  The corporate seal of this corporation shall bear
upon its face, in a circle, the words &#147;PHILIPPINE LONG DISTANCE TELEPHONE
COMPANY&#148;, and within the circle a desk telephone instrument and the words and
figures, &#147;INCORPORATED 1928&#148;.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*Amended
on March 29, 2001)</p>

<p align=center style='text-align:center;text-indent:.5in;
line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=center style='text-align:center;text-indent:.5in;
line-height:150%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">*ARTICLE XV</p>

<p align=center style='text-align:center;text-indent:.5in;
line-height:150%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">AMENDMENTS</p>

<p style='text-align:justify;line-height:150%;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">*       Section 1.  The owners of the majority of the subscribed capital
stock may, at a regular or special meeting duly called for the purpose, amend
or repeal these By-Laws, or adopt new By-laws.  The owners of two-thirds of the
subscribed capital stock may delegate to the Board of Directors the power to
amend or repeal these By-Laws or to adopt new By-Laws; provided, however, that
any such power so delegated to the Board of Directors shall be considered as
revoked whenever a majority of the stockholders shall so vote at a regular or
special meeting called for the purpose.</p>

<p align=center style='text-align:center;text-indent:.5in;
line-height:150%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(* Amended on April 15, 1953)</p>

<p align=center style='text-align:center;text-indent:.5in;
line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">*       Section
2.  All By-Laws and amendments thereto adopted shall be certified by a majority
of the Directors and by the Secretary or Assistant Secretary, and entered in
the book of By-Laws.  Whenever any amendment or new By-Law is adopted, it shall
be entered in the book of By-Laws with the original By-Laws.  If any By-Law is
repealed, the fact of repeal with the date of the meeting at which the repeal
was enacted, or written assent was filed, shall be stated in said book.</p>

<p align=center style='text-align:center;line-height:150%' style="margin-top:0;margin-bottom:0">(*Amended
on March 29, 2001)</p>

<p style='text-align:justify;text-indent:.5in;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;text-indent:27.0pt;line-height:
150%' style="margin-top:0;margin-bottom:0">The following notation is <u>FOR GUIDANCE ONLY</u> and does not
constitute a part of the By-Laws of Philippine Long Distance Telephone Company.</p>

<p style='text-align:justify;text-indent:.5in;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">         NOTE:
Under the provisions of Section 1 of ARTICLE XV (formerly Article XIV) of the
By-Laws of Philippine Long Distance Telephone Company, the owners of two-thirds
of the subscribed capital stock may delegate to the Board of Directors the
power to amend, repeal or adopt new By-Laws.  Under the authority given by said
section of the By-Laws, the stockholders under date of April 15, 1953 <u>delegated to the Board</u> the power to amend, repeal or adopt new By-Laws.</p>

<p style='text-align:justify;line-height:150%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=right style='text-align:right;line-height:10.0pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>|</b></p>

<b><br clear=all
style='page-break-before:always'>
</b>

<p align=right style='text-align:right;line-height:10.0pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>EXHIBIT 6</b></p>

<p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">PHILIPPINE LONG DISTANCE
TELEPHONE COMPANY</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Computation
of Operating Income and Earnings Per Share</p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">For the years 2000
through 2004</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0 align=left
   style='width:100.06%;border-collapse:collapse;margin-left:6.75pt;
 margin-right:6.75pt;border-collapse:collapse !msorm;margin-left:6.75pt !msorm;
 margin-right:6.75pt !msorm'>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-top:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-top:
 solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-top:
 solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004(1)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-top:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-top:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-top:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2002</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-top:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-top:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2001</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-top:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-top:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2000</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=9 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(in millions, except
 net operating income (loss) per common share)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1. Operating income (loss) per share</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Basic</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:.3in;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Operating income (loss) </p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php48,539</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$862</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:3.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php33,379</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php12,029</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php7,994)</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .05in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php10,524</p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Deduct:  Dividends on preferred stock</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,764</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">31</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:3.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,739</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,645</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,503</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .05in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,249</p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:49.5pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Accretion of redemption value of
 preferred stock subject to mandatory conversion</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,503</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">27</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:3.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,309</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,004</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">542</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:4.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:.3in;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Operating income (loss) applicable to
 common shareholders</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php45,272</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$804</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:3.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php30,331</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php9,380</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php10,039)</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .05in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php9,275</p>
 </td>
 <td style='border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in'
  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Diluted</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:.3in;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Operating income (loss) </p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php48,539</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$862</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 3.15pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php33,379</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php12,029</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php7,994)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .05in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php10,524</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Deduct:  Dividends on preferred stock</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">49</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 3.15pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">49</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,036</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,503</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .05in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,249</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:45.0pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Accretion of redemption value of
 preferred stock subject to mandatory conversion</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 3.15pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,309</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,004</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">542</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:.3in;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Operating income (loss) applicable to
 common shareholders</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php48,490</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$861</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 3.15pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php32,021</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php9,989</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php10,039)</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .05in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php9,275</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:12.6pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Basic</p>
 </td>
 <td   valign=bottom style=' border:none;background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #D9D9D9;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 3.15pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:31.5pt;text-indent:-13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Weighted average number of common shares
 (in thousands)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 3.15pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:17.1pt;text-indent:9.9pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Outstanding common shares, beginning</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">169,476</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 3.15pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">169,361</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">168,895</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">168,498</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .05in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">121,173</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:.3in;text-indent:5.4pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Effect of issuance of common shares
 during the year</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">252</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 3.15pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">52</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">200</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">162</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .05in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">36,504</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">169,728</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 3.15pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">169,413</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">169,095</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">168,660</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .05in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">157,677</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:12.6pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Diluted</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 3.15pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:31.5pt;text-indent:-13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Weighted average number of common shares
 (in thousands)</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 3.15pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:17.1pt;text-indent:9.9pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Outstanding common shares, beginning</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">169,476</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 3.15pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">169,361</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">168,895</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">168,498</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .05in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">121,173</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:27.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Effect of issuance of common shares during the year</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">252</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 3.15pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">52</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">200</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">162</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .05in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">36,504</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:27.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Weighted average number of shares under ESOP during
 the year(3)</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">155</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 3.15pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .05in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:27.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Common share equivalent of preferred shares deemed
 dilutive</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">22,381</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 3.15pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">24,222</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">22,160</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .05in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">192,264</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 3.15pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">193,635</p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">191,255</p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">168,660</p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .05in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">157,677</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.75pt' style='page-break-inside:
 avoid !msorm;height:6.75pt !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:6.75pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:6.75pt'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:6.75pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:6.75pt'>
 <p align=right style=';margin-right:
 3.15pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:6.75pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:6.75pt'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:6.75pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.2pt' style='page-break-inside:
 avoid !msorm;height:6.2pt !msorm'>
 <td   valign=top style=' border:none;background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:6.2pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Operating income (loss) per share </p>
 </td>
 <td   valign=bottom style=' border:none;background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:6.2pt'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:6.2pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #D9D9D9;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:6.2pt'>
 <p align=right style=';margin-right:
 3.15pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm;height:6.2pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm;height:6.2pt'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm;height:6.2pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Basic</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php266.73</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$4.73</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 3.15pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php179.04</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php55.47</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php59.52)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .05in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php58.82</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Diluted</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">252.20</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">4.48</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 3.15pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">165.37</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">52.23</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(59.52)</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .05in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">58.82</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><u>&nbsp;</u></p>
 </td>
 <td   colspan=9 valign=top style=' border:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='margin-right:5.75pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><u>&nbsp;</u></p>
 </td>
 <td   colspan=9 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='margin-right:5.75pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(in millions, except
 earnings per common share)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2. Earnings per share(2)</b></p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Basic</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:31.5pt;text-indent:-.2in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Net income (loss) before cumulative
 effect of change in accounting policy</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php28,101</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$499</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php11,045</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php6,158)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php27,782)</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php29,258)</p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:17.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Deduct:  Dividends on preferred stock </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,764</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">31</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,739</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,645</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,503</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 1.45pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,249</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:40.5pt;text-indent:-22.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">               Accretion to redemption
 value of preferred stock<br>
 subject to mandatory conversion</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,503</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">27</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,309</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,004</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">542</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 5.75pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:17.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net income (loss) attributable  to common
 shareholders</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php24,834</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$441</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php7,997</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php8,807)</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php29,827)</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 1.45pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php30,507)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:12.6pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Diluted</p>
 </td>
 <td   valign=bottom style=' border:none;background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #D9D9D9;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:31.5pt;text-indent:-13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Net income (loss)  before cumulative
 effect of change in accounting policy</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php28,101</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$499</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php11,045</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php6,158)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php27,782)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php29,258)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:17.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Deduct:  Dividends on preferred stock </p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">285</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,485</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,645</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,503</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 1.45pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,249</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:40.5pt;text-indent:-22.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">               Accretion to redemption
 value of preferred stock<br>
 subject to mandatory conversion</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,503</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">27</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .7pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,309</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,004</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .05in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">542</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 5.75pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:12.6pt;text-indent:5.4pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Net income (loss) applicable to common
 shareholders</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php26,313</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$467</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php8,251</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php8,807)</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php29,827)</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php30,507)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:12.6pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Basic</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';margin-right:
 .05in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:31.5pt;text-indent:-13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Weighted average number of common shares
 (in thousands)</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:17.1pt;text-indent:9.9pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Outstanding common shares, beginning</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">169,476</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">169,361</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">168,895</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">168,498</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">121,173</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:.3in;text-indent:5.4pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Effect of issuance of common shares
 during the year</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">252</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">52</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">200</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">162</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">36,504</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='text-indent:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">169,728</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">169,413</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">169,095</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">168,660</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">157,677</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='text-indent:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Diluted</p>
 </td>
 <td   valign=bottom style=' border:none;background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #D9D9D9;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='text-indent:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Weighted average number of common shares (in
 thousands)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='text-indent:27.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Outstanding common shares, beginning</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">169,476</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">169,361</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">168,895</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">168,498</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">121,173</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='text-indent:27.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Effect of issuance of common shares during the year</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">252</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">52</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">200</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">162</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">36,504</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='text-indent:27.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Weighted average number of shares under ESOP during
 the year(3)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">155</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='text-indent:27.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Common share equivalent of preferred shares deemed
 dilutive:</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,213</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,069</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='text-indent:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">181,096</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">180,482</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">169,095</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">168,660</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">157,677</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Earnings per share(2) </p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.7pt' style='page-break-inside:
 avoid !msorm;height:11.7pt !msorm'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:11.7pt'>
 <p style='margin-left:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Basic</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:11.7pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php146.32</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:11.7pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$2.60</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:11.7pt'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php47.20</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:11.7pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php52.08)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:11.7pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php176.85)</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:11.7pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php193.48)</p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Diluted</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-bottom:
 double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">145.30</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-bottom:
 double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2.58</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">45.72</p>
 </td>
 <td   colspan=2 valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(52.08)</p>
 </td>
 <td   colspan=2 valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(176.85)</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-bottom:
 double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(193.48)</p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr height=0>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 </tr>
</table></center></div>

<div style='border:none;border-bottom:solid windowtext 1.5pt;padding:0in 0in 1.0pt 0in'>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:13.5pt;margin-bottom:.0001pt;text-indent:-13.5pt;line-height:normal;
page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>(1)    The PLDT Group maintains its accounts in Philippine
peso.  For convenience, the peso financial information as at and for the year
ended December 31, 2004 has been translated into U.S. dollars at the exchange
rate of Php56.341 to US$1.00, the peso-dollar rate as quoted through the
Philippine Dealing System as at December 31, 2004.</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:13.5pt;text-indent:-13.5pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>(2)    Our convertible preferred stocks
were deemed anti-dilutive for the years ended </i><i>December 31, 2002</i><i>, 2001
and 2000.  Since the amount of preferred dividends over the equivalent number
of common stocks were greater than the basic earnings per share, the amounts
reported for the years ended December 31, 2002, 2001 and 2000 basic and diluted
earnings per common share were the same.</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0"><i>(3)    The dilutive effect of the outstanding options
is reflected as additional share dilution in the computation of earnings per
common share, see Note 20 &#150; Earnings per Common Share.</i></p>

<p style='text-indent:5.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>EXHIBIT 7</b></p>

<p style='margin-left:13.5pt;text-indent:-13.5pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:13.5pt;text-indent:-13.5pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:13.5pt;text-indent:-13.5pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:13.5pt;text-indent:-13.5pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>PHILIPPINE LONG DISTANCE TELEPHONE COMPANY</b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Calculation of Ratio of Earnings to Fixed Charges</b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">For the years 2000 through
2004</p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:96.06%;border-collapse:collapse;border-collapse:collapse !msorm'>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:white;padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:white;padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0"><b><u>2004</u></b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:white;padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0"><b><u>2004</u></b><u>(1)</u></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:white;padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b><u>2003</u></b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:white;padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b><u>2002</u></b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:white;padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">2001</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:white;padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2000</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=6 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='margin-right:.05in;text-align:center' style="margin-top:0;margin-bottom:0"><b>(in millions, except ratio of earnings (loss) to
 fixed charges)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">Earnings
 (a)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php49,155</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">US$872</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php24,168</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php11,320</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">(Php13,117)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">(Php19,664)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Fixed charges &#150; (b)</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:8.1pt' style="margin-top:0;margin-bottom:0">Fixed
 charges excluding amortization of capitalized interest</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php12,805</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">US$227</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php12,747</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php14,177</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php15,839</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php14,154</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:.15in' style='page-break-inside:
 avoid !msorm;height:.15in !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p style='margin-left:8.1pt' style="margin-top:0;margin-bottom:0">Capitalized
 interest, net of amortization</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">(915)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">(16)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">(714)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(394)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,170</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:.15in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,691</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php11,890</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">US$211</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php12,033</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php13,783</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php17,009</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php15,845</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Ratio (a/b) (2)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">4.1</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">4.1</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">2.0</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">_____________</p>

<p style='line-height:50%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:-.25in;line-height:
9.0pt' style="margin-top:0;margin-bottom:0"><i>(1)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>PLDT maintains its accounts
in Philippine peso.  For convenience, the peso financial information as at and
for the year ended December 31, 2004 has been translated into U.S. dollars at
the exchange rate of Php56.341 to US$1.00, the peso-dollar rate as quoted
through the Philippine Dealing System as at December 31, 2004.</i></p>

<p style='line-height:50%' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.25in;text-indent:-.25in;line-height:
9.0pt' style="margin-top:0;margin-bottom:0"><i>(2)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>For purposes of this ratio,
&#147;Earnings&#148; consist of income before provision for income tax (excluding PLDT&#146;s
share in undistributed income of less than 50%-owned affiliates) and fixed
charges (excluding capitalized interest).  &#147;Fixed charges&#148; consist of interest
(including capitalized interest, discounts and other financing costs) on all
indebtedness, amortization of deferred financing costs and the estimated
financing component of rent expense (i.e., one-third of rent expense).</i></p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.25in;line-height:9.0pt' style="margin-top:0;margin-bottom:0"><i>Due to PLDT&#146;s net losses in 2002, 2001 and 2000, the
coverage ratio on a consolidated basis was less than 1.0x in all of these three
years.  In order to achieve a coverage ratio of 1.0x, we would have had to
generate additional consolidated earnings of Php2,463 million, Php30,126
million and Php35,509 million for the three years ended </i><i>December 31, 2002</i><i>, 2001 and 2000, respectively.</i></p>

<p style='line-height:50%' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<b><i><br
clear=all style='page-break-before:always'>
</i></b>

<p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>EXHIBIT 8</b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;page-break-after:auto' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">SUBSIDIARIES</h1>

<p style='margin-top:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:101.5%;margin-left:.9pt;border-collapse:collapse'>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal;page-break-after:auto' style="margin-top:0;margin-bottom:0">Name of
 Subsidiary</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Jurisdiction</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Principal Activity</b></p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Percentage of Ownership<br>
 (As at </b><b>December 31, 2004</b><b>)</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Wireless</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:17.1pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Smart Communications, Inc. and subsidiaries</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Cellular mobile
 services</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:17.1pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Pilipino Telephone Corporation and
 subsidiaries</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Cellular mobile
 services and telecommunications services</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">92.1</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:12.6pt' style="margin-top:0;margin-bottom:0">Telesat,
 Inc.</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Satellite
 communications services</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">94.4</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:17.1pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">ACeS Philippines Cellular Satellite
 Corporation</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Satellite phone services
 </p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:17.1pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Mabuhay Satellite Corporation (formerly
 Mabuhay Phiilippines Satellite Corporation)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Satellite
 communications services</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">67.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Fixed Line</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:12.6pt' style="margin-top:0;margin-bottom:0">PLDT
 Clark Telecom, Inc.</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Telecommunications services</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:.05in' style="margin-top:0;margin-bottom:0">Subic
 Telecommunications</p>
 <p style='margin-left:9.0pt;text-indent:8.1pt' style="margin-top:0;margin-bottom:0">Company, Inc.</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Telecommunications services</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:12.6pt' style="margin-top:0;margin-bottom:0">Smart-NTT
 Multimedia, Inc.</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Data and network services</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:17.1pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">PLDT Global and subsidiaries</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">British Virgin Islands</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Telecommunications services</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:17.1pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">PLDT-Maratel, Inc. (formerly Maranao Telephone
 Company, Inc.)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Telecommunications
 services</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">97.5</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:17.1pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Bonifacio Communications Corporation</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Telecommunications,
 infrastructure and related value-added services</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">75.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Information and Communications Technology</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:12.6pt' style="margin-top:0;margin-bottom:0">ePLDT,
 Inc. and subsidiaries</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Information and
 communications infrastructure for internet-based services, e-commerce, call
 centers and IT-related services</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:31.5pt;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<br
clear=all style='page-break-before:always'>

<p style='text-indent:387.0pt' style="margin-top:0;margin-bottom:0"><b>Exhibit
12.1</b></p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779268">CERTIFICATION</a></p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:normal' style="margin-top:0;margin-bottom:0">I, Napoleon L. Nazareno, certify that:</p>

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
I have reviewed this annual report
on Form 20-F of Philippine Long Distance Telephone Company;</p>

<p style='margin-left:.5in;text-indent:-.25in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Based on my knowledge, this report
does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with
respect to the period covered by this report;</p>

<p style='margin-left:.5in;text-indent:-.25in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Based on my knowledge, the
financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of
operations and cash flows of the Company as at, and for, the periods presented
in this report;</p>

<p style='margin-left:.5in;text-indent:-.25in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company&#146;s other certifying
officer(s) and I are responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) for the Company and have:</p>

<p style='margin-left:.5in;text-indent:-.25in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;margin-left:
..75in;text-indent:-.25in;page-break-after:auto' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the Company, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;</h2>

<p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;margin-left:
..75in;text-indent:-.25in;page-break-after:auto' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
[Omitted pursuant to the guidance of Release No. 33-8238 (June 5, 2003), Release No.
33-8392 (February 24, 2004) and Release No. 33-8545 (March 2, 2005)];</h2>

<p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;margin-left:
..75in;text-indent:-.25in;page-break-after:auto' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Evaluated the effectiveness of the Company's disclosure controls and
procedures and presented in this report our conclusions about the effectiveness
of the disclosure controls and procedures, as at the end of the period covered
by this report based on such evaluation; and</h2>

<p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;margin-left:
..75in;text-indent:-.25in;page-break-after:auto' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Disclosed in this report any change in the Company&#146;s internal control
over financial reporting that occurred during the period covered by the annual
report that has materially affected, or is reasonably likely to materially
affect, the Company&#146;s internal control over financial reporting; and</h2>

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company&#146;s other certifying
officers and I have disclosed, based on our most recent evaluation of internal
control over financial reporting, to the Company&#146;s auditors and the audit
committee of the Company&#146;s board of directors (or persons performing the
equivalent functions):</p>

<p style='margin-left:.5in;text-indent:-.25in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All significant deficiencies and
material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the
Company's ability to record, process, summarize and report financial
information; and</p>

<p style='margin-left:.5in;text-indent:-.25in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any fraud, whether or not
material, that involves management or other employees who have a significant
role in the Company&#146;s internal control over financial reporting.</p>

<p style='margin-left:.5in;text-indent:-.25in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Date:  June 30, 2005</p>

<p style='margin-left:.5in;text-indent:-.25in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:-.25in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='margin-left:288.9pt;border-collapse:collapse'>
 <tr>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:.05in;text-align:center' style="margin-top:0;margin-bottom:0">/s/   Napoleon L. Nazareno</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">Napoleon
 L. Nazareno</p>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">President and Chief Executive Officer</p>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(Principal Executive Officer)</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<b><br clear=all
style='page-break-before:always'>
</b>

<p style='margin-left:22.3pt;text-indent:355.7pt' style="margin-top:0;margin-bottom:0"><b>Exhibit 12.2</b></p>

<p align=center style='margin-left:22.3pt;text-align:center;
text-indent:-22.3pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p align=center style='margin-left:22.3pt;text-align:center;
text-indent:-22.3pt' style="margin-top:0;margin-bottom:0"><b>CERTIFICATION</b></p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-bottom:12.0pt' style="margin-top:0;margin-bottom:0">I,
Anabelle L. Chua, certify that:</p>

<p style='margin-left:.75in;text-indent:-.5in' style="margin-top:0;margin-bottom:0">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
I have reviewed this annual report
on Form 20-F of Philippine Long Distance Telephone Company;</p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Based on my knowledge, this report
does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with
respect to the period covered by this report;</p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Based on my knowledge, the
financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of
operations and cash flows of the Company as at, and for, the periods presented
in this report;</p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company&#146;s other certifying
officer(s) and I are responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) for the Company and have:</p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;margin-left:
..75in;text-indent:-.25in;page-break-after:auto' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">a)     Designed such disclosure
controls and procedures, or caused such disclosure controls and procedures to
be designed under our supervision, to ensure that material information relating
to the Company, including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in which this
report is being prepared;</h2>

<p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;margin-left:
..75in;text-indent:-.25in;page-break-after:auto' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">b)    [Omitted pursuant to the
guidance of Release No. 33-8238 (June 5, 2003), Release
No.33-8392 (February 24, 2004) and Release No. 33-8545 (March 2, 2005)];</h2>

<p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;margin-left:
..75in;text-indent:-.25in;page-break-after:auto' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">c)     Evaluated the effectiveness of
the Company's disclosure controls and procedures and presented in this report
our conclusions about the effectiveness of the disclosure controls and
procedures, as at the end of the period covered by this report based on such
evaluation; and</h2>

<p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;margin-left:
..75in;text-indent:-.25in;page-break-after:auto' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">d)    Disclosed in this report any
change in the Company&#146;s internal control over financial reporting that occurred
during the period covered by the annual report that has materially affected, or
is reasonably likely to materially affect, the Company&#146;s internal control over
financial reporting; and</h2>

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company&#146;s other certifying
officer(s) and I have disclosed, based on our most recent evaluation of
internal control over financial reporting, to the Company&#146;s auditors and the
audit committee of the Company&#146;s board of directors (or persons performing the
equivalent functions):</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">a)     All significant deficiencies and material
weaknesses in the design or operation of internal control over financial
reporting which are reasonably likely to adversely affect the Company's ability
to record, process, summarize and report financial information; and</p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">b)    Any fraud, whether or not material, that
involves management or other employees who have a significant role in the
Company&#146;s internal control over financial reporting.</p>

<p style='line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Date:  June 30, 2005</p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='margin-left:297.9pt;border-collapse:collapse'>
 <tr>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">/s/  Anabelle L. Chua</p>
 </td>
 </tr>
 <tr style='height:38.65pt'>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt;
 height:38.65pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">Anabelle
 L. Chua</p>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">Senior Vice President and Treasurer</p>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(Principal Financial Officer)</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:382.5pt' style="margin-top:0;margin-bottom:0"><a name=node35></a><b>&nbsp;</b></p>

<b><br clear=all
style='page-break-before:always'>
</b>

<p style='text-indent:5.25in' style="margin-top:0;margin-bottom:0"><b>Exhibit
13.1</b></p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p align=center style='margin-left:22.5pt;text-align:center;
text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><b>CERTIFICATION</b></p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p align=left style='margin-right:.25in;text-align:left;
text-indent:27.0pt' style="margin-top:0;margin-bottom:0">Pursuant to 18 U.S.C. &#167;
1350, I, Napoleon L. Nazareno, President and Chief Executive Officer of
Philippine Long Distance Telephone Company, hereby certify, to my knowledge,
that our annual report on Form 20-F for the year ended December 31, 2004 (the
&#147;Report&#148;) fully complies with the requirements of Section 13(a) or 15(d), as
applicable, of the Securities Exchange Act of 1934, and that the information
contained in the Report fairly presents, in all material respects, our
financial condition and results of operations.</p>

<p align=left style='text-align:left;text-indent:24.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:24.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left' style="margin-top:0;margin-bottom:0">Date:  June 30, 2005</p>

<p align=left style='text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='margin-left:31.9pt;border-collapse:collapse'>
 <tr>
 <td  valign=bottom style=' padding:2.9pt 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:2.9pt 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:2.9pt 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:2.9pt 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">/s/  Napoleon L. Nazareno</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:2.9pt 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:2.9pt 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:2.9pt 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;padding:2.9pt 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">Napoleon
 L. Nazareno</p>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">President and Chief Executive Officer</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:2.9pt 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:2.9pt 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:2.9pt 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:2.9pt 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(Principal Executive Officer)</p>
 </td>
 </tr>
</table></center></div>

<p align=left style='margin-top:24.0pt;text-align:left;
text-indent:27.0pt' style="margin-top:0;margin-bottom:0">The foregoing
certification is being furnished solely pursuant to 18 U.S.C. &#167; 1350 and is not
being filed as part of the Report or as a separate disclosure document.</p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<br
clear=all style='page-break-before:always'>

<p style='margin-left:22.5pt;text-indent:346.5pt' style="margin-top:0;margin-bottom:0"><b>Exhibit 13.2</b></p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p align=center style='margin-left:22.5pt;text-align:center;
text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><b>CERTIFICATION</b></p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p align=left style='margin-right:27.0pt;text-align:left;
text-indent:27.0pt' style="margin-top:0;margin-bottom:0">Pursuant to 18 U.S.C. &#167;
1350, I, Anabelle L. Chua, Senior Vice President and Treasurer of Philippine
Long Distance Telephone Company, hereby certify, to my knowledge, that our
annual report on Form 20-F for the year ended December 31, 2004 (the &#147;Report&#148;)
fully complies with the requirements of Section 13(a) or 15(d), as applicable,
of the Securities Exchange Act of 1934, and that the information contained in
the Report fairly presents, in all material respects, our financial condition
and results of operations.</p>

<p align=left style='text-align:left;text-indent:24.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:24.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left' style="margin-top:0;margin-bottom:0">Date:  June 30, 2005</p>

<p align=left style='text-align:left;text-indent:24.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:24.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
 <td  valign=bottom style=' padding:2.9pt 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:2.9pt 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:2.9pt 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:2.9pt 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">/s/  Anabelle L. Chua</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:2.9pt 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:2.9pt 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:2.9pt 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;padding:2.9pt 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">Anabelle
 L. Chua</p>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">Senior Vice President and Treasurer</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:2.9pt 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:2.9pt 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:2.9pt 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:2.9pt 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">(Principal Financial Officer)</p>
 </td>
 </tr>
</table></center></div>

<p align=left style='margin-top:24.0pt;text-align:left;
text-indent:27.0pt' style="margin-top:0;margin-bottom:0">The foregoing
certification is being furnished solely pursuant to 18 U.S.C. &#167; 1350 and is not
being filed as part of the Report or as a separate disclosure document.</p>

<br
clear=all style='page-break-before:always'>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b>Report of Independent
Registered Public Accounting Firm</b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The Board of Directors and
the Stockholders of</p>

<p style="margin-top:0;margin-bottom:0">Philippine Long Distance Telephone
Company</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">We have audited the
accompanying consolidated balance sheets of Philippine Long Distance Telephone
Company and subsidiaries as of December
 31, 2004 and 2003, and the related
consolidated statements of income, changes in stockholders&#146; equity, and cash
flows for each of the three years in the period ended December 31, 2004.
These financial statements are the responsibility of the Company&#146;s management.
Our responsibility is to express an opinion on these financial statements based
on our audits.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">We conducted our audits in
accordance with the standards of the Public Company Accounting Oversight Board
(United States).  Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement.  We were not engaged to perform an audit of
the Company&#146;s internal control over financial reporting.  Our audits included
consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the Company&#146;s
internal control over financial reporting.  Accordingly, we express no such
opinion. An audit also includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation.  We believe that our
audits provide a reasonable basis for our opinion.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">In our opinion, the
consolidated financial statements referred to above present fairly, in all
material respects, the consolidated financial position of Philippine Long
Distance Telephone Company and subsidiaries as of December 31, 2004 and 2003,
and the consolidated results of their operations and their cash flows for each
of the three years in the period ended December 31, 2004, in conformity with
United States generally accepted accounting principles.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">As discussed in Note 3 to the
consolidated financial statements, the Company changed its method of accounting
for asset retirement obligations in 2003, and goodwill and other intangible
assets in 2002.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">/s/ SyCip Gorres Velayo &amp;
Co.</p>

<p style="margin-top:0;margin-bottom:0">SYCIP GORRES VELAYO &amp; CO.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Makati City, Philippines</p>

<p style="margin-top:0;margin-bottom:0">June 24, 2005</p>

<br clear=all
style='page-break-before:always'>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>PHILIPPINE LONG
DISTANCE TELEPHONE COMPANY AND SUBSIDIARIES</b></p>

<p align=center style=';text-align:center;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=center style='text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>CONSOLIDATED
BALANCE SHEETS</b></p>

<p align=center style='text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>DECEMBER 31, 2004</b><b> AND 2003</b></p>

<p align=center style='text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(in
millions of pesos, except par value amounts)</b></p>

<p align=center style='text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.22%;border-collapse:collapse;border-collapse:collapse !msorm'>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid;height:10.0pt' style='page-break-inside:
 avoid !msorm;height:10.0pt !msorm'>
 <td   colspan=3 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:10.0pt'>
 <p align=center style='margin-top:6.0pt;;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>ASSETS</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:12.6pt' style='page-break-inside:
 avoid !msorm;height:12.6pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:12.6pt'>
 <p style='margin-top:4.0pt' style="margin-top:0;margin-bottom:0"><b>Current Assets</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:12.6pt'>
 <p align=right style='margin-top:4.0pt;margin-right:13.45pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:12.6pt'>
 <p align=right style='margin-top:4.0pt;margin-right:13.45pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Cash and cash equivalents (Notes 4 and 23)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>27,321</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">19,372</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Short-term investments (Note 23)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>3,873</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">1,661</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Trade and other receivables - net (Notes 5 and 23) </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>10,404</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">17,087</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Inventories and supplies - net (Note 6)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,140</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">2,676</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Deferred income tax assets - net (Note 19)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>11,111</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">7,932</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Derivative assets (Note 23)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>335</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">262</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><a
 name="OLE_LINK16">Prepaid expenses</a></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,229</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">821</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Other current assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,511</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">557</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Total Current Assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>57,924</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">50,368</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:13.2pt' style='page-break-inside:
 avoid !msorm;height:13.2pt !msorm'>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.2pt'>
 <p style='margin-top:4.0pt' style="margin-top:0;margin-bottom:0"><b>Noncurrent Assets</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.2pt'>
 <p align=right style='margin-top:4.0pt;margin-right:13.45pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.2pt'>
 <p align=right style='margin-top:4.0pt;margin-right:13.45pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.25pt' style='page-break-inside:
 avoid !msorm;height:11.25pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:11.25pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Property, plant and equipment - net (Note 7)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:11.25pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>186,093</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:11.25pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">190,217</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.75pt' style='page-break-inside:
 avoid !msorm;height:6.75pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:6.75pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Investments - net (Note 8)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:6.75pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>294</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:6.75pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">1,448</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.75pt' style='page-break-inside:
 avoid !msorm;height:6.75pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:6.75pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Investments-available-for-sale (Note 23)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:6.75pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>104</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:6.75pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">118</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Goodwill and other intangible assets - net (Note 9)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>16,561</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">15,464</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Deferred income tax assets - net (Note 19)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>8,916</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">12,780</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Derivative assets (Note 23)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>4,116</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">1,361</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Other noncurrent assets - net (Note 10)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>5,631</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">4,608</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Total Noncurrent Assets</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>221,715</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">225,996</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.0pt' style='page-break-inside:
 avoid !msorm;height:6.0pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm;height:6.0pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm;height:6.0pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>279,639</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm;height:6.0pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">276,364</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.1pt' style='page-break-inside:
 avoid !msorm;height:8.1pt !msorm'>
 <td   colspan=3 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:8.1pt'>
 <p align=center style='margin-top:6.0pt;margin-right:13.45pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>LIABILITIES AND STOCKHOLDERS&#146; EQUITY</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-top:4.0pt' style="margin-top:0;margin-bottom:0"><b>Current
 Liabilities</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-top:4.0pt;margin-right:13.45pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-top:4.0pt;margin-right:13.45pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Accounts payable (Note 23)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>7,029</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">5,977</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:18.4pt;text-indent:-18.4pt' style="margin-top:0;margin-bottom:0">Accrued expenses and other current liabilities (Notes
 11, 16 and 23)<br>
 (Due to related parties amounted to Php3,270 and Php2,260 as at December 31, 2004 <br>
 and 2003, respectively)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>16,574</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">13,513</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Unearned revenues</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>3,820</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">4,116</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Derivative liabilities (Note 23)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>473</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">91</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Current portion of
 interest-bearing financial liabilities (Notes 7, 12, 21 and 23)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>28,503</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">26,238</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.75pt' style='page-break-inside:
 avoid !msorm;height:6.75pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:6.75pt'>
 <p style="margin-top:0;margin-bottom:0">Dividends payable
 (Notes 20 and 23)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:6.75pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>652</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:6.75pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">577</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Income tax payable</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,976</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">840</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Total Current Liabilities</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>59,027</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">51,352</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.25pt' style='page-break-inside:
 avoid !msorm;height:8.25pt !msorm'>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:8.25pt'>
 <p style='margin-top:4.0pt' style="margin-top:0;margin-bottom:0"><b>Noncurrent Liabilities</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:8.25pt'>
 <p align=right style='margin-top:4.0pt;margin-right:13.45pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:8.25pt'>
 <p align=right style='margin-top:4.0pt;margin-right:13.45pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.75pt' style='page-break-inside:
 avoid !msorm;height:6.75pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:6.75pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Interest-bearing financial liabilities - net of
 current portion (Notes 7, 12, 21 and 23)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:6.75pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>131,978</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:6.75pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">161,193</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.55pt' style='page-break-inside:
 avoid !msorm;height:8.55pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:8.55pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Derivative
 liabilities (Note 23)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:8.55pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>6,930</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:8.55pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">3,737</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.45pt' style='page-break-inside:
 avoid !msorm;height:9.45pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.45pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Pension and other benefits (Note 17)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.45pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,640</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.45pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">3,585</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt' style='page-break-inside:
 avoid !msorm;height:9.0pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.0pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Customers&#146; deposits</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.0pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,174</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.0pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">2,177</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt' style='page-break-inside:
 avoid !msorm;height:9.0pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.0pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Remaining excess of debt forgiven over value of
 consideration given - net (Notes 12 and 14)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.0pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>5,834</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.0pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">8,784</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.0pt' style='page-break-inside:
 avoid !msorm;height:10.0pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.0pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Deferred credits and other noncurrent liabilities
 (Notes 13, 21 and 23)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.0pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>7,160</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.0pt'>
 <p align=right style='margin-right:13.3pt;text-align:right' style="margin-top:0;margin-bottom:0">5,805</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.0pt' style='page-break-inside:
 avoid !msorm;height:10.0pt !msorm'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm;height:10.0pt'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Total Noncurrent Liabilities</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm;height:10.0pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>156,716</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm;height:10.0pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">185,281</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.85pt' style='page-break-inside:
 avoid !msorm;height:11.85pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:11.85pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><b>Minority Interest in Consolidated Subsidiaries</b> </p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:11.85pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>861</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:11.85pt'>
 <p align=right style='margin-right:13.3pt;text-align:right' style="margin-top:0;margin-bottom:0">1,665</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.0pt' style='page-break-inside:
 avoid !msorm;height:10.0pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:10.0pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><b>Preferred Stock Subject to Mandatory Redemption </b>(Notes 14 and 23)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:10.0pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>14,956</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:10.0pt'>
 <p align=right style='margin-right:13.3pt;text-align:right' style="margin-top:0;margin-bottom:0">13,321</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.0pt' style='page-break-inside:
 avoid !msorm;height:10.0pt !msorm'>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:10.0pt'>
 <p style='margin-top:4.0pt;margin-right:0in;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><b>Stockholders&#146; Equity</b> (Notes 15 and 20)</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:10.0pt'>
 <p align=right style='margin-top:4.0pt;margin-right:13.45pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:10.0pt'>
 <p align=right style='margin-top:4.0pt;margin-right:13.45pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.0pt' style='page-break-inside:
 avoid !msorm;height:10.0pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.0pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Preferred stock, Php10 par value, authorized 822,500,000
 shares: </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.0pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.0pt'>
 <p align=right style='margin-right:13.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.0pt' style='page-break-inside:
 avoid !msorm;height:10.0pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.0pt'>
 <p style='margin-left:18.4pt' style="margin-top:0;margin-bottom:0">Series
 A to EE (issued and outstanding 409,065,857 shares as at December 31, 2004 and <br>
 409,876,226 shares as at December 31,
 2003)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.0pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>4,091</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.0pt'>
 <p align=right style='margin-right:13.3pt;text-align:right' style="margin-top:0;margin-bottom:0">4,099</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.0pt' style='page-break-inside:
 avoid !msorm;height:10.0pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.0pt'>
 <p style='margin-left:18.4pt' style="margin-top:0;margin-bottom:0">Series
 III (issued and outstanding 4,616,200 shares as at December 31, 2004 and
 2003)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.0pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>46</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.0pt'>
 <p align=right style='margin-right:13.3pt;text-align:right' style="margin-top:0;margin-bottom:0">46</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.0pt' style='page-break-inside:
 avoid !msorm;height:10.0pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.0pt'>
 <p style='margin-left:18.4pt' style="margin-top:0;margin-bottom:0">Series
 IV (issued and outstanding 36,000,000 shares as at December 31, 2004 and
 2003)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.0pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>360</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.0pt'>
 <p align=right style='margin-right:13.3pt;text-align:right' style="margin-top:0;margin-bottom:0">360</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.0pt' style='page-break-inside:
 avoid !msorm;height:10.0pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.0pt'>
 <p style='margin-left:18.4pt;text-indent:-18.4pt' style="margin-top:0;margin-bottom:0">Common stock, Php5 par value, authorized 234,000,000
 shares; issued and outstanding 170,213,722 <br>
 shares as at December 31, 2004 and 169,476,120 shares as at December 31, 2003</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.0pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>851</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.0pt'>
 <p align=right style='margin-right:13.3pt;text-align:right' style="margin-top:0;margin-bottom:0">847</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.0pt' style='page-break-inside:
 avoid !msorm;height:10.0pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.0pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Capital in excess of par value</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.0pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>75,396</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.0pt'>
 <p align=right style='margin-right:13.3pt;text-align:right' style="margin-top:0;margin-bottom:0">74,520</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.0pt' style='page-break-inside:
 avoid !msorm;height:10.0pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.0pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Accumulated deficit</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.0pt'>
 <p align=right style='margin-top:0in;margin-right:.15in;
 margin-bottom:0in;margin-left:12.95pt;margin-bottom:.0001pt;text-align:right;
 text-indent:-12.95pt' style="margin-top:0;margin-bottom:0"><b>(33,197)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.0pt'>
 <p align=right style='margin-top:0in;margin-right:.15in;
 margin-bottom:0in;margin-left:12.95pt;margin-bottom:.0001pt;text-align:right;
 text-indent:-12.95pt' style="margin-top:0;margin-bottom:0">(58,031)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.0pt' style='page-break-inside:
 avoid !msorm;height:10.0pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:10.0pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Accumulated other comprehensive income (Note 23)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:10.0pt'>
 <p align=right style='margin-right:13.7pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>532</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:10.0pt'>
 <p align=right style='margin-right:13.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2,904</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.0pt' style='page-break-inside:
 avoid !msorm;height:10.0pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:10.0pt'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Total
 Stockholders&#146; Equity</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:10.0pt'>
 <p align=right style='margin-right:13.7pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>48,079</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:10.0pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">24,745</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.0pt' style='page-break-inside:
 avoid !msorm;height:6.0pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm;height:6.0pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm;height:6.0pt'>
 <p align=right style='margin-right:13.7pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>279,639</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm;height:6.0pt'>
 <p align=right style='margin-right:13.45pt;text-align:right' style="margin-top:0;margin-bottom:0">276,364</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-top:3.0pt' style="margin-top:0;margin-bottom:0">See accompanying Notes to
Consolidated Financial Statements.</p>

<b><br clear=all
style='page-break-before:always'>
</b>

<p align=center style=';text-align:center;
page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>PHILIPPINE LONG
DISTANCE TELEPHONE COMPANY AND SUBSIDIARIES</b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">CONSOLIDATED STATEMENTS OF INCOME</h1>

<p align=center style='text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>FOR
THE YEARS ENDED </b><b>DECEMBER 31, 2004</b><b>, 2003 AND 2002</b></p>

<p align=center style='text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(in
millions of pesos, except per share amounts)</b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.36%;margin-left:.4pt;border-collapse:collapse;border-collapse:
 collapse !msorm'>
 <tr style='page-break-inside:avoid;height:9.75pt' style='page-break-inside:
 avoid !msorm;height:9.75pt !msorm'>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:9.75pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:9.75pt'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:9.75pt'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:9.75pt'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.1pt' style='page-break-inside:
 avoid !msorm;height:7.1pt !msorm'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:7.1pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>OPERATING REVENUES </b>(Notes 17,
 18 and 24)</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:7.1pt'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:7.1pt'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:7.1pt'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.75pt' style='page-break-inside:
 avoid !msorm;height:9.75pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.75pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Service revenues</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.75pt'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>114,952</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.75pt'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100,486</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.75pt'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">81,686</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.3pt' style='page-break-inside:
 avoid !msorm;height:6.3pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:6.3pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Non-service revenues</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:6.3pt'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>6,269</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:6.3pt'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,714</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:6.3pt'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,145</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.75pt' style='page-break-inside:
 avoid !msorm;height:9.75pt !msorm'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm;height:9.75pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm;height:9.75pt'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>121,221</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm;height:9.75pt'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">111,200</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm;height:9.75pt'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">93,831</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>OPERATING EXPENSES </b>(Note 18)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Depreciation
 and amortization (Notes 7 and 24)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>20,098</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">21,812</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">17,566</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Compensation and benefits (Notes 17 and 18)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>12,026</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13,304</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,893</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cost
 of cellular handsets and SIM-packs sold</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>10,599</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">15,790</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">17,232</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Selling and promotions (Note 16)<br>
 (Total transactions with related parties amounted to Php32, <br>
 Php26 and Php14 in 2004, 2003 and 2002, respectively)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>5,708</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,399</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,603</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.35pt' style='page-break-inside:
 avoid !msorm;height:10.35pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.35pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Maintenance (Note 16)<br>
 (Total transactions with related parties amounted to Php111, <br>
 Php68 and Php65 in 2004, 2003 and 2002, respectively)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.35pt'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>5,671</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.35pt'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,931</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.35pt'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,856</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Provision
 for doubtful accounts (Notes 5 and 24)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>3,948</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,092</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,160</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Rent (Note 16)<br>
 (Total transactions with related parties amounted to Php6, <br>
 Php7 and Php3 in 2004, 2003 and 2002, respectively)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,160</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,166</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,106</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Professional and other service fees
 (Note 16)<br>
 (Total transactions with related parties amounted to Php694, <br>
 Php616 and Php636 in 2004, 2003 and 2002, respectively)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,123</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,714</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,304</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Taxes and licenses (Note 22)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,055</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,147</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">980</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.0pt' style='page-break-inside:
 avoid !msorm;height:4.0pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:4.0pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Insurance and securities (Note 16)<br>
 (Total transactions with related parties amounted to Php534, <br>
 Php581 and Php367 in 2004, 2003 and 2002, respectively)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:4.0pt'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,644</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:4.0pt'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,528</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:4.0pt'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,354</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Asset impairment (Notes 7, 8, 18 and 24)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,412</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">675</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13,279</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Cost of satellite air time (All are
 transactions with related parties) (Notes 16 and 21) <br>
 (Total transactions with related parties amounted to Php1,299, Php1,919 and <br>
 Php50 in 2004, 2003 and 2002, respectively)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,299</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,919</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">50</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Provision
 for inventory obsolescence (Notes 6 and 24)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>577</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">251</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">476</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.35pt' style='page-break-inside:
 avoid !msorm;height:10.35pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Amortization of intangible assets (Note 9)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.35pt'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>93</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.35pt'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">766</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:10.35pt'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">766</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Other operating expenses </p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>3,269</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,327</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,177</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>72,682</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">77,821</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">81,802</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">OPERATING
 INCOME</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>48,539</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">33,379</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,029</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>FINANCING COSTS </b> (Notes 18
 and 24)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(17,097)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(24,783)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(18,351)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>INTEREST INCOME</b> (Note 24)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>942</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">513</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">473</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>EQUITY IN NET LOSSES OF ASSOCIATES</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(74)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(88)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(142)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>OTHER INCOME </b>- Net (Note 18)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,530</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">799</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,397</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.25pt' style='page-break-inside:
 avoid !msorm;height:3.25pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:3.25pt'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">INCOME
 (LOSS) BEFORE INCOME TAX, CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING POLICY
 AND MINORITY INTEREST IN NET (INCOME) LOSS OF CONSOLIDATED SUBSIDIARIES </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:3.25pt'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>34,840</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:3.25pt'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9,820</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:3.25pt'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(4,594)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>BENEFIT FROM (PROVISION FOR) INCOME TAX </b>(Notes 19 and 24)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(6,826)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,400</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,438)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:7.1pt;text-indent:-7.1pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>INCOME (LOSS) BEFORE CUMULATIVE
 EFFECT OF CHANGE IN ACCOUNTING POLICY <br>
 AND MINORITY INTEREST IN NET INCOME (LOSS) OF CONSOLIDATED SUBSIDIARIES</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>28,014</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,220</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(6,032)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:7.1pt;text-indent:-7.1pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>CUMULATIVE </b><b>EFFECT</b><b> </b><b>ON</b><b>
 PRIOR YEARS (UP TO </b><b>DECEMBER 31,
 2002</b><b>) OF ADOPTING <br>
 SFAS 143, &#147;ACCOUNTING FOR ASSET RETIREMENT OBLIGATIONS&#148;</b> - Net of tax effect <br>
 (Note 3)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(61)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:7.1pt;text-indent:-7.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>INCOME (LOSS) BEFORE MINORITY
 INTEREST IN NET LOSS (INCOME) OF CONSOLIDATED SUBSIDIARIES</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>28,014</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,159</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(6,032)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:7.1pt;text-indent:-7.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>MINORITY INTEREST IN NET LOSS
 (INCOME) OF CONSOLIDATED SUBSIDIARIES</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>87</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(114)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(126)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>NET INCOME (LOSS)</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>28,101</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,045</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(6,158)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>DIVIDENDS AND ACCRETION OF PREFERRED STOCK</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(3,267)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(3,048)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2,649)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS </b>(Note 20)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>24,834</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,997</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(8,807)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Earnings Per Common Share </b>(Note
 20)</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Basic earnings per common share before
 cumulative effect of change in accounting policy</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>146.32</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">47.56</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(52.08) </p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Cumulative effect of change in
 accounting policy</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(0.36)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Basic earnings per common share</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b> 146.32</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">  47.20</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(52.08)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Diluted earnings per common share before
 cumulative effect of change in accounting policy</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>145.30</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">46.06</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(52.08)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Cumulative effect of change in
 accounting policy</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(0.34)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Diluted earnings per common share</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right' style="margin-top:0;margin-bottom:0"><b> 145.30</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right' style="margin-top:0;margin-bottom:0">  45.72</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right' style="margin-top:0;margin-bottom:0">(52.08)</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-top:3.0pt' style="margin-top:0;margin-bottom:0"><i>See
accompanying Notes to Consolidated Financial Statements</i><i>.</i></p>

<i><br clear=all
style='page-break-before:always'>
</i>

<p align=center style='margin-top:3.0pt;text-align:center;
page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>PHILIPPINE LONG
DISTANCE TELEPHONE COMPANY AND SUBSIDIARIES</b></p>

<p align=center style=';margin-top:
3.0pt;margin-right:2.45pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;
text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>CONSOLIDATED
STATEMENTS OF CHANGES IN STOCKHOLDERS&#146; EQUITY</b></p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>FOR THE YEARS
ENDED </b><b>DECEMBER 31, 2004</b><b>, 2003 AND 2002</b></p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>(in millions of
pesos)</b></p>

<p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:101.22%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:12.75pt'>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:12.75pt'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:12.75pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Preferred<br>
 Stock</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:12.75pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Common<br>
 Stock</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:12.75pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Capital in <br>
 Excess of <br>
 Par Value</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:12.75pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Accumulated Deficit</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:12.75pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Accumulated Other Comprehensive Income</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:12.75pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Total</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.2pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 11.2pt'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Balances as at January 1, 2002</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 11.2pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,129</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 11.2pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">845</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 11.2pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">73,961</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 11.2pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(57,171)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 11.2pt'>
 <p align=right style='margin-right:.25in;text-align:right' style="margin-top:0;margin-bottom:0">2,708</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 11.2pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">24,472</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:12.3pt'>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;height:12.3pt'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Comprehensive loss:</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;height:12.3pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;height:12.3pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;height:12.3pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;height:12.3pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;height:12.3pt'>
 <p align=right style='margin-right:.25in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;height:12.3pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.45pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p style='margin-left:.25in;text-indent:-3.4pt' style="margin-top:0;margin-bottom:0">Net loss for the year</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(6,158)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:.25in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(6,158)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.35pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 10.35pt'>
 <p style='text-indent:14.6pt' style="margin-top:0;margin-bottom:0">Translation
 gains</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 10.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 10.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 10.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 10.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 10.35pt'>
 <p align=right style='margin-right:.25in;text-align:right' style="margin-top:0;margin-bottom:0">76</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 10.35pt'>
 <p align=right style='margin-right:2.6pt;text-align:right' style="margin-top:0;margin-bottom:0">  76</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.9pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 6.9pt'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Net comprehensive loss</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 6.9pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 6.9pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 6.9pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 6.9pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(6,158)</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:6.9pt'>
 <p align=right style='margin-right:.25in;text-align:right' style="margin-top:0;margin-bottom:0">  76</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 6.9pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(6,082)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:12.3pt'>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;height:12.3pt'>
 <p style='margin-left:14.6pt;text-indent:-14.6pt' style="margin-top:0;margin-bottom:0">Cash dividends (Note 20)</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;height:12.3pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;height:12.3pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;height:12.3pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;height:12.3pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,683)</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;height:12.3pt'>
 <p align=right style='margin-right:.25in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;height:12.3pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,683)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:13.95pt'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:13.95pt'>
 <p style='margin-left:14.6pt;text-indent:-14.6pt' style="margin-top:0;margin-bottom:0">Accretion to redemption value of preferred stock
 subject to mandatory redemption (Note 20)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:13.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:13.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:13.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:13.95pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,004)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:13.95pt'>
 <p align=right style='margin-right:.25in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:13.95pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,004)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:22.05pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:22.05pt'>
 <p style='margin-left:14.6pt;text-indent:-14.6pt' style="margin-top:0;margin-bottom:0">Partial redemption of Series IV Preferred Stock (Note
 14)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:22.05pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(72)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:22.05pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:22.05pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:22.05pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:22.05pt'>
 <p align=right style='margin-right:.25in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:22.05pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(72)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.25pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 11.25pt'>
 <p style='margin-left:14.6pt;text-indent:-14.6pt' style="margin-top:0;margin-bottom:0">Issuance of capital stock (Note 15)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 11.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">417</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 11.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 11.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">363</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 11.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 11.25pt'>
 <p align=right style='margin-right:.25in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 11.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 782</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.15pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:11.15pt'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Balances as at December 31, 2002</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:11.15pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,474</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:11.15pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 847</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:11.15pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">74,324</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:11.15pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(66,016)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:11.15pt'>
 <p align=right style='margin-right:.25in;text-align:right' style="margin-top:0;margin-bottom:0">2,784</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:11.15pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">16,413</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.55pt'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;height:11.55pt'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Comprehensive income:</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:11.55pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:11.55pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:11.55pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;height:11.55pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:11.55pt'>
 <p align=right style='margin-right:.25in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:11.55pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:13.05pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:13.05pt'>
 <p style='margin-left:.25in;text-indent:-3.4pt' style="margin-top:0;margin-bottom:0">Net income for the year</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:13.05pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:13.05pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:13.05pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:13.05pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">11,045</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:13.05pt'>
 <p align=right style='margin-right:.25in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:13.05pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">11,045</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:13.5pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 13.5pt'>
 <p style='margin-left:.25in;text-indent:-3.4pt' style="margin-top:0;margin-bottom:0">Translation gains</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 13.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 13.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 13.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 13.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 13.5pt'>
 <p align=right style='margin-right:.25in;text-align:right' style="margin-top:0;margin-bottom:0">120</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 13.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 120</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:12.75pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 12.75pt'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Net comprehensive income</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 12.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 12.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 12.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 12.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">11,045</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 12.75pt'>
 <p align=right style='margin-right:.25in;text-align:right' style="margin-top:0;margin-bottom:0"> 120</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 12.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">11,165</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:12.75pt'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;height:12.75pt'>
 <p style='margin-left:14.6pt;text-indent:-14.6pt' style="margin-top:0;margin-bottom:0">Cash dividends (Note 20)</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:12.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:12.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:12.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;height:12.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,751)</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:12.75pt'>
 <p align=right style='margin-right:.25in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:12.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,751)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:20.25pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:20.25pt'>
 <p style='margin-left:14.6pt;text-indent:-14.6pt' style="margin-top:0;margin-bottom:0">Accretion to redemption value of preferred stock
 subject to mandatory redemption (Note
 20)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:20.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:20.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:20.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:20.25pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,309)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:20.25pt'>
 <p align=right style='margin-right:.25in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:20.25pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,309)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.7pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 11.7pt'>
 <p style="margin-top:0;margin-bottom:0">Issuance of capital stock
 (Note 15)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 11.7pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">31</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 11.7pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 11.7pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">196</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 11.7pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 11.7pt'>
 <p align=right style='margin-right:.25in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 11.7pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 227</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:12.05pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:12.05pt'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Balances as at December 31, 2003</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:12.05pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,505</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:12.05pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 847</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:12.05pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">74,520</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:12.05pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(58,031)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:12.05pt'>
 <p align=right style='margin-right:.25in;text-align:right' style="margin-top:0;margin-bottom:0">2,904</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:12.05pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">24,745</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.7pt'>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;height:11.7pt'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Comprehensive income:</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;height:11.7pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;height:11.7pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;height:11.7pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;height:11.7pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;height:11.7pt'>
 <p align=right style='margin-right:.25in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;height:11.7pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:12.15pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:12.15pt'>
 <p style='margin-left:.25in;text-indent:-3.4pt' style="margin-top:0;margin-bottom:0">Net income for the year</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:12.15pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:12.15pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:12.15pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:12.15pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">28,101</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:12.15pt'>
 <p align=right style='margin-right:.25in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:12.15pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">28,101</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.45pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p style='margin-left:.25in;text-indent:-3.4pt' style="margin-top:0;margin-bottom:0">Translation loss</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:.2in;text-align:right' style="margin-top:0;margin-bottom:0">(2,168)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(2,168)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.45pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p style='margin-left:.25in;text-indent:-3.4pt' style="margin-top:0;margin-bottom:0">Net loss on available-for-sale financial assets</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:.2in;text-align:right' style="margin-top:0;margin-bottom:0">(5)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(5)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.45pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 9.45pt'>
 <p style='margin-left:.25in;text-indent:-3.4pt' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 9.45pt'>
 <p align=right style='margin-right:.2in;text-align:right' style="margin-top:0;margin-bottom:0">(199)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 9.45pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(199)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.6pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 9.6pt'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Net comprehensive income</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 9.6pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 9.6pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 9.6pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 9.6pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">28,101</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 9.6pt'>
 <p align=right style='margin-right:.2in;text-align:right' style="margin-top:0;margin-bottom:0">(2,372)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 9.6pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">25,729</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.5pt'>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;height:10.5pt'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Cash dividends
 (Note 20)</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;height:10.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,764)</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.5pt'>
 <p align=right style='margin-right:.25in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,764)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.25pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:11.25pt'>
 <p style='margin-left:13.9pt;text-indent:-13.9pt' style="margin-top:0;margin-bottom:0">Accretion to redemption value of preferred stock
 subject to mandatory redemption (Note
 20)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:11.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:11.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:11.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:11.25pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,503)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:11.25pt'>
 <p align=right style='margin-right:.25in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:11.25pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,503)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.65pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 7.65pt'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Issuance of capital stock (Note 15)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 7.65pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(8)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 7.65pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 7.65pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">876</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 7.65pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 7.65pt'>
 <p align=right style='margin-right:.25in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 7.65pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 872</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.8pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.8pt'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><b>Balances as at </b><b>December 31, 2004</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.8pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>4,497</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.8pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b> 851</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.8pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>75,396</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.8pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(33,197)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.8pt'>
 <p align=right style='margin-right:.25in;text-align:right' style="margin-top:0;margin-bottom:0"><b> 532</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.8pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>48,079</b></p>
 </td>
 </tr>
</table></center></div>

<p style='margin-top:3.0pt' style="margin-top:0;margin-bottom:0"><i>See
accompanying Notes to Consolidated Financial Statements.</i></p>

<p align=center style='text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<b><br clear=all
style='page-break-before:always'>
</b>

<p align=center style=';text-align:center;
page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>PHILIPPINE LONG
DISTANCE TELEPHONE COMPANY AND SUBSIDIARIES</b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">CONSOLIDATED STATEMENTS OF CASH FLOWS</h1>

<p align=center style='text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>FOR
THE YEARS ENDED </b><b>DECEMBER 31, 2004</b><b>, 2003 AND 2002</b></p>

<p align=center style='text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(in
millions of pesos)</b></p>

<p align=center style='text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.38%;border-collapse:collapse;border-collapse:collapse !msorm'>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>CASH FLOWS FROM OPERATING ACTIVITIES</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net income (loss)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>28,101</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,045</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(6,158)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Adjustments to reconcile net income
 (loss) from operations to net cash provided <br>
 by operating activities:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Depreciation and amortization</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>20,098</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">21,812</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">17,566</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Provision for doubtful accounts (Note 5)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>3,948</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,092</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,160</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Unrealized foreign exchange losses</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,882</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,527</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,301</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Asset impairment charges (Notes 7, 8 and
 18)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,412</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">675</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13,279</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Accretion on financial liabilities (Note
 18)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,185</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">729</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">643</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Loss (gain) on derivative instruments</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>617</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,616</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(522)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Provision for inventory obsolescence
 (Notes 6 and 24)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>577</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">251</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">476</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Loss (gain) on disposal of property and equipment</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>155</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(463)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(87)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Amortization of intangible assets (Note
 9)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>93</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">766</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">766</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Equity in net losses of associates</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>74</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">88</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">142</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Minority interest in net income (loss)
 of consolidated subsidiaries</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(87)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">114</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">126</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Provision for (benefit from) deferred
 income tax (Note 19)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(531)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(3,731)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">849</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Gain on debt exchange and debt
 restructuring transactions (Note 18)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(2,816)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>485</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,345)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">142</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Operating cash flows before working capital changes </p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>56,193</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="OLE_LINK3"></a>47,176</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">36,683</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Changes in assets and liabilities, net
 of effect from purchase of subsidiaries: </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.4pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Decrease (increase) in:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.4pt;text-indent:12.3pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Trade and other receivables</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,305</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(4,364)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,005</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.4pt;text-indent:12.3pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Inventories and supplies</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(9)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,576</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">353</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.4pt;text-indent:12.3pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Prepaid expenses and other current
 assets</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(1,279)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">306</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(186)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.4pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Increase (decrease) in:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.8pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.4pt;text-indent:12.3pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Accounts payable</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,848</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(3,231)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2,507)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.4pt;text-indent:12.3pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Accrued expenses and other current
 liabilities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,844</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,215</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,558</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.4pt;text-indent:12.3pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Unearned revenues on sale of prepaid
 cards</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(343)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">787</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.4pt;text-indent:12.3pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Income tax payable</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,367</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(280)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">627</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.4pt;text-indent:12.3pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Deferred credits and other noncurrent
 liabilities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(1,066)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2,603)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(813)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net cash provided by operating activities</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>62,860</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">42,582</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">39,722</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>CASH FLOWS FROM INVESTING ACTIVITIES</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Additions to property, plant and equipment</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(19,268)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(17,943)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(17,239)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Proceeds from disposal of property and equipment</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>112</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">226</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">252</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Payments for purchase of investments, net of cash acquired</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(1,276)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(197)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cash disbursements for lease deposits and other noncurrent assets</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(1,834)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(404)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(210)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Increase in short-term investments</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(2,212)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,661)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Investments in debt securities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(286)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cash of disposed subsidiary</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(93)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Proceeds from disposal of investments</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">51</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">30</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net cash used in investing activities</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(24,764)</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(20,021)</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(17,167)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>CASH FLOWS FROM FINANCING ACTIVITIES</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Payments of long-term borrowings</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(41,697)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(31,548)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(43,870)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Proceeds from long-term borrowings</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>15,187</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">17,507</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">36,011</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Repayments of notes payable</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(2,412)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,698)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(13,600)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Dividends paid</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(1,692)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,603)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,582)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Proceeds from notes payable</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>457</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,135</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,872</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Proceeds from issuance of capital stock</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>281</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">94</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">464</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Increase (decrease) in capital lease liabilities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(134)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">98</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">29</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Debt issuance costs paid</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(68)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(120)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,206)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Redemption of preferred stock</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(72)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Net cash used in financing activities</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(30,078)</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(14,135)</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(15,954)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-8.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>EFFECT OF EXCHANGE RATE CHANGES ON
 CASH AND <br>
 CASH EQUIVALENTS</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(69)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(28)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">97</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>NET INCREASE IN CASH AND CASH
 EQUIVALENTS</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>7,949</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,398</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,698</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>CASH AND CASH EQUIVALENTS AT
 BEGINNING OF YEAR</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>19,372</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,974</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,276</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   style=' border:none;border-bottom:double windowtext 2.25pt;
 background:#E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 2.25pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>CASH AND CASH EQUIVALENTS AT END OF
 YEAR</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>27,321</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">19,372</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,974</p>
 </td>
 </tr>
</table></center></div>

<p style='text-align:justify' style="margin-top:0;margin-bottom:0"><i>See
accompanying Notes to Consolidated Financial Statements.</i></p>

<br clear=all
style='page-break-before:always'>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>PHILIPPINE LONG DISTANCE TELEPHONE COMPANY AND
SUBSIDIARIES</b></p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div style='border:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 0in 0in'>

<p style='line-height:50%;border:none;padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='margin-left:.25in;text-align:justify;text-indent:
- -.25in;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0"><b>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</b><b>Corporate Information</b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
Philippine Long Distance Telephone Company, or PLDT, was incorporated under the
old Corporation Law of the Philippines (Act 1459, as amended) on November 28, 1928, following the
merger of four telephone companies under common United States ownership.  Under
its amended Articles of Incorporation, PLDT&#146;s corporate term is limited through
2028.  In 1967, effective control of PLDT was sold by General Telephone and
Electronics Corporation (a major stockholder since PLDT&#146;s incorporation) to a
group of Filipino businessmen.  In 1981, in furtherance of the then existing
policy of the Philippine government to integrate the Philippine
telecommunications industry, PLDT purchased substantially all of the assets and
liabilities of the Republic Telephone Company which at that time was the second
largest telephone company in the Philippines.  During 1998, First Pacific
through its Philippine and other affiliates, acquired a significant interest in
PLDT.  On March 24, 2000, NTT Communications, through NTTC-UK, became PLDT&#146;s
strategic partner with approximately 15% economic and voting interest in the
issued common capital stock of PLDT.  Simultaneous with NTT Communications&#146;
investment in PLDT, we acquired 100% of Smart.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
common shares of PLDT are listed and traded on the Philippine Stock Exchange,
or PSE, and prior to October 19, 1994, were listed and traded on the American Stock
Exchange and Archipelago Exchange in the United
 States of America.  On October 19, 1994, an
American Depositary Receipts, or ADRs, facility was established, pursuant to
which Citibank N.A., as the depositary, issued ADRs evidencing American
Depositary Shares, or ADSs, with each ADS representing one PLDT common share
with a par value of Php5 per share.  JP Morgan Chase Bank has been appointed as
successor depositary for PLDT&#146;s ADR facility effective February 10, 2003.
The ADSs are listed and traded on the New York Stock Exchange, or NYSE, and the
Archipelago Exchange in the United States.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">PLDT&#146;s
charter, like those of all other Philippine corporations, was initially limited
to a period of 50 years but has since been extended twice for 25 years each,
the last extension being for an additional 25-year period to 2028.  Under its
amended charter (Republic Act No. 7082), which became effective on August 24,
1991, PLDT is authorized to provide virtually every type of telecommunications
service, both within the Philippines and between the Philippines and other
countries.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">PLDT
operates under the jurisdiction of the Philippine National Telecommunications
Commission, or NTC, which jurisdiction extends, among other things, to
approving major services offered by PLDT and certain rates charged by PLDT. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">PLDT
has three employee unions. The three unions are in aggregate composed of 9,472
members as at December 31, 2004.  The union members represent 42% of the employees of
the PLDT Group on a consolidated basis as at December 31, 2004.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
registered office address of PLDT is Ramon Cojuangco Building, Makati Avenue, Makati City, Philippines.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div style='border:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 0in 0in'>

<p style='line-height:50%;border:none;padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='margin-left:.25in;text-align:justify;text-indent:
- -.25in;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0"><b>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</b><b>Basis of Consolidated Financial Statements Preparation</b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
consolidated financial statements have been prepared in conformity with
accounting principles generally accepted in the United States of America, or
U.S. GAAP.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
consolidated financial statements include the financial statements of PLDT and
those of the following subsidiaries (collectively, the PLDT Group), which were
all incorporated in the Philippines except for PLDT Global Corporation, or PLDT
Global, which was incorporated in the British Virgin Islands.</p>

<p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.36%;border-collapse:collapse;border-collapse:collapse !msorm'>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:1.45pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Percentage of
 Ownership</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Name of Subsidiary/Investee</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:1.45pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Principal Activity</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>

 <tr>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-top:6.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Wireless</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:
 0in;margin-left:.15in;margin-bottom:.0001pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-top:6.0pt;margin-right:9.0pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-top:6.0pt;margin-right:9.0pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-top:6.0pt;margin-right:9.0pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Smart Communications, Inc., or Smart, <br>
 and subsidiaries</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.15in;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Cellular mobile services</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>100.0</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Pilipino Telephone
 Corporation, or Piltel, <br>
 and subsidiaries </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.15in;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Cellular mobile and
 telecommunications services </p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>92.1</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">45.3</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">45.3</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Telesat, Inc., or Telesat</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.15in;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Satellite communications
 services</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>94.4</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">94.4</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">94.4</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">ACeS Philippines Cellular
 Satellite<br>
 Corporation, or ACeS Philippines</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.15in;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Satellite phone services </p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>100.0</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Mabuhay Satellite Corporation,
 or <br>
 Mabuhay Satellite</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.15in;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Satellite communications
 services </p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>67.0</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">67.0</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">67.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-top:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Fixed Line</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.15in;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">PLDT Clark Telecom, Inc., or <br>
 Clark Telecom</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.15in;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Telecommunications services</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>100.0</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Subic Telecommunications Company, Inc.,
 <br>
 or Subic Telecom</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.15in;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Telecommunications services</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>100.0</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Smart-NTT Multimedia, Inc., or SNMI</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.15in;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Data and network services</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>100.0</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">PLDT Global Corporation, or PLDT
 Global, and subsidiaries</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.15in;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Telecommunications services</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>100.0</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">PLDT-Maratel, Inc., or Maratel</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.15in;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Telecommunications services</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>97.5</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">97.5</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">97.5</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Bonifacio Communications Corporation, <br>
 or BCC</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.15in;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Telecommunications, infrastructure and
 related value-added services</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>75.0</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">75.0</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">37.5</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:
 0in;margin-left:9.4pt;margin-bottom:.0001pt;text-indent:-9.4pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Information and Communications <br>
 Technology </b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:
 0in;margin-left:.15in;margin-bottom:.0001pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-top:6.0pt;margin-right:9.0pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-top:6.0pt;margin-right:9.0pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-top:6.0pt;margin-right:9.0pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">ePLDT, Inc., or ePLDT, and subsidiaries</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:.15in;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Information and communications <br>
 infrastructure for internet-based <br>
 services, e-commerce, call centers and IT-related services</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>100.0</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 </tr>
</table></center></div>

<p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The method of accounting applied to investments, whether
consolidated, equity or cost, involves an evaluation of all significant terms
of the investments that explicitly grant or suggest evidence of control or
significant influence over the operations of the investee.  The consolidated
financial statements include our controlled subsidiaries. Investments in
businesses which we do not control, but we have the ability to exercise
significant influence over operating and financial policies, are accounted for
using the equity method.  Investments in which we do not have the ability to
exercise significant influence over operating and financial policies are
accounted for using the cost method.  Equity and cost method investments are
included in the &#147;Investments&#148; account in our consolidated balance sheets.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
consolidated financial statements are prepared using uniform accounting
policies for like transactions and events with similar circumstances.
Intercompany balances and transactions, including intercompany profits and
unrealized profits and losses, are eliminated.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Minority
interests represent the equity interests in Wolfpac Communications, Inc., or
Wolfpac, Meridian Telekoms, Inc., or Meridian, Telesat, Mabuhay Satellite,
Maratel, BCC, Digipar Thailand Ltd., netGames, Inc., or netGames, and Infocom
Technologies, Inc. not held by the PLDT Group.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b><i>Changes
in Piltel&#146;s Shareholding</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">To
integrate the PLDT Group&#146;s wireless holdings, on July 2, 2004, Smart entered into a sale and purchase agreement with PLDT to acquire PLDT&#146;s 59.3 million shares
of Piltel Series K Class I Convertible Preferred Stock for a purchase price of
Php2,066 million.  The payment was settled through an offset of amounts owed to
Smart by PLDT arising from interconnection charges.  On July 9, 2004 and December 28, 2004, Smart converted a total of 4.8 million and 54.5 million shares,
respectively, of Piltel Series K Class I Convertible Preferred Stock into
10,080 million shares of common stock of Piltel, equivalent to 85.6% of the
resulting total outstanding shares of common stock after such conversion.  On April 25, 2005, PLDT and Smart entered into a subscription and assignment agreement
covering the transfer and assignment to Smart of 767 million shares of Piltel
common stock owned by PLDT.  As a result, Smart now owns 92.1% of the total
outstanding common stock of Piltel, thereby consolidating the PLDT Group&#146;s
wireless business under Smart.  Transactions of entities under common control
were accounted for at historical cost.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>ePLDT </i></b><b><i>investments in ePLDT Ventus, Inc., or Ventus and netGames</i></b></p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">In the second half of 2004, ePLDT made investments in
Ventus and netGames, which are newly incorporated companies.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Ventus
is a wholly-owned call center subsidiary of ePLDT which was incorporated and
registered with the Philippine Securities and Exchange Commission, or SEC, on October 5, 2004.
ePLDT subscribed to 70 million shares at a total par value of Php70 million.
Ventus has a 400-seat call center facility located in Iloilo
province and commenced full commercial operations in March 2005.  We currently
expect that Ventus will be expanding in Metro Manila with a 678-seat call
center facility to accommodate current and new client requirements.  This
facility is expected to be completed by November 2005.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">ePLDT
owns 60% of netGames, a publisher for Massively Multi-player Online Game in the
 Philippines.  netGames is the Philippine licensee of Khan Online, the
country&#146;s first full 3D online game.  netGames was incorporated on June 21, 2004 and commenced full commercial operations in February 2005.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b><i>Acquisition
of </i></b><b><i>Meridian</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On July 5, 2004, Smart
entered into a sale and purchase agreement, as amended and supplemented on August 11, 2004, to
acquire 100% of Meridian, a company primarily engaged in providing wireless
broadband and data services to small and medium-scale enterprises in the Philippines,
for a total consideration of US$45 million.  Payments of US$11 million and US$7
million for an equity interest of 40% in Meridian were made in 2004 and
payments of US$4 million for an additional equity interest of 9% in Meridian
was made in January 2005.  The balance of US$23 million is payable on or before
December 31, 2005 in respect of the remaining 51% equity interest in Meridian.  The
acquisition aims to strengthen Smart&#146;s position in the wireless data segment
and is in line with Smart&#146;s overall strategy of providing the widest range of
innovative wireless services.  As at December 31, 2004, the net cash outflow on
acquisition was Php1,051 million, representing cash payments of Php1,004
million, cash acquired from Meridian of Php4 million and cost directly related
to business combination of Php51 million.  See <i>Note 9 &#150; Goodwill and Other
Intangible Assets </i>for further discussion.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b><i>Acquisition
of Wolfpac</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style="margin-top:0;margin-bottom:0">On October 31, 2003, Smart acquired
an 80% interest in Wolfpac for a total consideration of Php180 million, of
which Php90 million was paid in 2003 and the balance was paid in April 2004.
Prior to the acquisition, Wolfpac was one of Smart&#146;s leading content
providers.  The acquisition provides Smart with the opportunity to have a
direct link to the content development community, an important factor in
wireless communication services.  The purchase consideration has been allocated
to assets and liabilities on the basis of fair values at the date of
acquisition.  See <i>Note 9 &#150; Goodwill and Other Intangible Assets </i>for
further discussion.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<div style='border:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 0in 0in'>

<p style='line-height:50%;page-break-after:avoid;border:none;
padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='margin-left:.5in;text-indent:-.5in;page-break-after:
avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0"><b>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</b><b>Summary of Significant
Accounting Policies and Practices</b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our significant accounting policies and practices are
discussed below to facilitate the understanding of our consolidated financial
statements:</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>Revenue Recognition</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Revenue
for services is stated at amounts invoiced to customers and excludes
value-added tax.  We provide wireless communication services, fixed line
communication services, and information and communications technology
services.  We provide such services to business, residential, payphone and
mobile customers.  Revenue represents the value of fixed consideration that has
been received or is receivable.  Revenue is recognized when there is evidence
of an arrangement, collectibility is reasonably assured, and the delivery of
the product or service has occurred.  In certain circumstances, revenue is
split into separately identifiable components and recognized when the related
components are delivered in order to reflect the substance of the transaction.
The value of components is determined using verifiable objective evidence.  We
do not provide our customers with the right to a refund.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.25in' style="margin-top:0;margin-bottom:0"><i>Service
revenues</i></p>

<p style='text-indent:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Subscriptions.
</i>We provide telephone and data
communication services under postpaid and prepaid payment arrangements.
Revenue includes fees for installation and activation.  Installation and
activation-related fees and the corresponding costs, not exceeding the
activation revenue, are deferred and recognized over the expected average
periods of customer relationship of seven years and three years for fixed line
and cellular service, respectively.  Postpaid service arrangements include
subscription fees, typically fixed monthly fees, which are recognized over the subscription
period on a pro rata basis. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Air time, traffic and value-added services.  </i>Prepaid service revenue collected in advance is
deferred and recognized based on the earlier of actual usage or upon expiration
of the usage period.  Payphone service revenue is recognized when the service
is provided.  Interconnection revenue for call termination, call transit, and
network usage are recognized in the period the traffic occurs.  Revenues
related to local, long distance, network-to-network, roaming and international
call connection services are recognized when the call is placed or the
connection is provided, net of amounts payable to other telecommunication
carriers for terminating calls in their territories.  Revenue related to
products and value-added services is recognized upon delivery of the product or
service.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Directory
services.  </i>Revenue related to
published directory services is recognized on a pro rata basis over the period
in which the publication expires, which is generally 12 months.  Telephone-based
directory service revenue is recognized when the service is provided.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Incentives.
</i>We record insignificant commission
expense based on the number of new subscriber connections initiated by certain
dealers.  All other cash incentives provided to dealers and customers are
recorded as a reduction from revenue.  Product-based incentives provided to
dealers and customers as part of a transaction are accounted for as multiple
element arrangements and recognized when earned.</p>

<p style='text-indent:.25in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.25in' style="margin-top:0;margin-bottom:0"><i>Non-service
revenues</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Handset
and equipment sales.  </i>Sales of
cellular handsets and communication equipment are recognized upon delivery to
the customer.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.25in' style="margin-top:0;margin-bottom:0"><i>Other
income</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Others.
</i>Interest income from cash deposits is
recognized on a time proportion basis taking into account the principal amount
outstanding and the effective interest rate.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><b><i>Cash and Cash Equivalents</i></b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cash includes cash on hand and in banks.  Cash
equivalents are short-term, highly liquid investments that are readily
convertible to known amounts of cash with original maturities of three months
or less and that are subject to an insignificant risk of change in value.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><b><i>Accounts Receivable </i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Accounts
receivable are stated at face value, net of allowance for doubtful accounts.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><b><i>Allowance for Doubtful Accounts</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style="margin-top:0;margin-bottom:0">Allowance for doubtful accounts
is maintained at a level considered adequate to provide for uncollectible
receivables.  The level of allowance is based on historical collections,
write-off experience, current economic trends, changes in our customer payment
terms and other factors that may affect our ability to collect payments.  An
evaluation of the receivables, designed to identify potential charges to the
allowance, is performed on a continuous basis during the year.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Subscribers</i>.
Full allowance is provided for receivables from permanently disconnected
subscribers.  Permanent disconnections are made after a series of collection
steps following non-payment by subscribers.  Such permanent disconnections
generally occur within 105 days from due date.  Partial allowance is provided
for active subscribers based on the aging profile of the receivable.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Traffic
settlement receivables &#150; net</i>.  Full
allowance is provided for carrier accounts which have been past due for over
360 days from transaction date and after a review of the status of settlement
with other carriers.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><b><i>Inventories and Supplies</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style="margin-top:0;margin-bottom:0">Inventories and supplies are
valued at the lower of cost or market value.  These are items of cellular phone
units, materials, spare parts, terminal units and accessories.  Cost is
determined using the moving average method.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><b><i>Property, Plant and Equipment</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Property, plant and equipment,
except for land, are stated at cost less accumulated depreciation and
amortization and any impairment in value.  Land is stated at cost less any
impairment in value.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The initial cost of property,
plant and equipment comprises its purchase price and any costs directly
attributable in bringing the asset to its working condition and location for
its intended use.  Expenditures incurred after the assets have been put into
operation, such as repairs and maintenance and overhaul costs, are normally
charged to income in the period the costs are incurred.  In situations where it
can be clearly demonstrated that the expenditures have resulted in an increase
in the future economic benefits expected to be obtained from the use of an item
of property, plant and equipment beyond its originally assessed standard of
performance, the expenditures are capitalized as additional costs of property,
plant and equipment.  Cost also includes interests on borrowed funds used
during the construction period.  When assets are sold or retired, their costs,
accumulated depreciation and amortization and any impairment in value are
eliminated from the accounts and any gain or loss resulting from their disposal
is included in the consolidated statement of income of such period.</p>

<p style='text-indent:35.3pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Depreciation
and amortization are calculated on a straight-line basis over the following
estimated useful lives of the assets:</p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:83.34%;margin-left:41.4pt;border-collapse:collapse'>

 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style=';;
 text-indent:.9pt' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>Estimated<u><br>
 Useful Lives</u></b></p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style=';;
 text-indent:.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>

 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style=';;
 text-indent:.9pt' style="margin-top:0;margin-bottom:0">Buildings</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">25 &#150; 40 years</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style=';;
 text-indent:.9pt' style="margin-top:0;margin-bottom:0">Cable and wire facilities </p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">20 &#150; 25 years</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style=';;
 text-indent:.9pt' style="margin-top:0;margin-bottom:0">Central office equipment</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">15 &#150; 20 years</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style=';;
 text-indent:.9pt' style="margin-top:0;margin-bottom:0">Communications
 satellite</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">15 years</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style=';;
 text-indent:.9pt' style="margin-top:0;margin-bottom:0">Information origination and
 termination equipment</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">5 &#150; 15 years</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style=';;
 text-indent:.9pt' style="margin-top:0;margin-bottom:0">Cellular facilities</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">10 years</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style=';;
 text-indent:.9pt' style="margin-top:0;margin-bottom:0">Land improvements</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">10 years</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style=';;
 text-indent:.9pt' style="margin-top:0;margin-bottom:0">Vehicles, furniture and
 other work equipment</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">3 &#150; 10 years</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
useful lives and depreciation and amortization method are reviewed periodically
to ensure that the periods and method of depreciation and amortization are
consistent with the expected pattern of economic benefits from items of
property, plant and equipment.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Property under construction is stated at cost.  This
includes cost of construction, plant and equipment and other direct costs.
Property under construction is not depreciated until such time that the
relevant assets are completed and put into operational use.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Interest
costs and other costs incurred in connection with the borrowing of funds are
capitalized during the construction of plant and equipment as part of the cost
of acquiring assets, see<i> Note 7 &#150; Property, Plant and Equipment.</i></p>

<br clear=all
style='page-break-before:always'>

<p style='text-indent:35.45pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='margin-left:.25in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><b><i>Impairment of Assets</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Effective
January 1, 2002, in conformity with Statement of Financial Accounting
Standards, or SFAS 144, &#147;Accounting for the Impairment or Disposal of
Long-Lived Assets&#148;, long-lived assets and identifiable intangible assets are
reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount of an asset may not be recoverable.  Assets, which are
held and used in operations, would be subjected to impairment test if the
carrying amount of the asset exceeded the undiscounted future net cash flows
without interest charges expected to result from the use of the asset.  If an
impairment exists, the amount of the impairment recorded is based on the fair
value of the assets.  Assets, which are to be disposed of, would be impaired to
the extent the carrying amount of the asset exceeds fair value less disposal
costs.  The PLDT Group considers relevant cash flows, estimated future
operating results, trends and other available information in assessing whether
the carrying values of assets are recoverable.</p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><b><i>Asset Retirement Obligations</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Under
SFAS 143, &#147;Accounting for Asset Retirement Obligations,&#148; the fair value of
legal obligations associated with the retirement of a tangible long-lived asset
that resulted from the acquisition, construction or development and the normal
operation of a long-lived asset is required to be recognized in the period in
which it is incurred.  This Statement is effective for fiscal years after June 15, 2002.  The PLDT Group adopted this Statement in 2003.  Previously, the PLDT Group
has not been recognizing amounts related to asset retirement obligations.
Under SFAS 143, the PLDT Group now recognizes asset retirement obligations in
the period in which they are incurred if a reasonable estimate of a fair value
can be made.  The related asset retirement costs are capitalized as part of the
carrying amount of the corresponding long-lived asset.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
PLDT Group is legally required under various lease agreements to dismantle the
installations and restore the leased sites at the end of the lease contract
term.  The PLDT Group recognized the fair value of the liability for these
obligations and capitalized the present value of these costs as part of the balance
of the related property and equipment accounts, which are being depreciated on
a straight-line basis over the useful lives of the related assets or the
contract periods, whichever is shorter.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
cumulative effect of the change on prior years resulted in a charge to income
of Php61 million (net of income taxes of Php29 million) (Php0.36 per share),
which is included in the consolidated net income for the year ended December 31, 2003.
The effect of the change for the year ended December 31, 2003 was to decrease
income before cumulative effect of the change in accounting policy by Php111
million (Php0.66 per share).  The pro forma effects of the application of SFAS
143 as if the Statement had been adopted on January 1, 2002
(rather than January 1, 2003) are presented below:</p>

<p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:98.58%;margin-left:5.4pt;border-collapse:collapse'>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style=';
 ;text-align:center' style="margin-top:0;margin-bottom:0">(in
 millions of pesos, except per share amounts)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">Net income (loss)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:1.45pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">As
 reported</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>28,101</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">11,045</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(6,158)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Pro
 forma</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>28,101</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">11,106</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(6,189)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">Earnings per common share &#150; basic</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">As
 reported</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>146.32</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">47.20</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(52.08)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Pro
 forma</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>146.32</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">47.56</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(52.27)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">Earnings per common share &#150; diluted</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">As
 reported</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>145.30</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">45.72</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(52.08)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Pro
 forma</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>145.30</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">46.05</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(52.27)</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
pro forma balances of asset retirement obligations as if SFAS 143 had been
adopted on January 1, 2002 (rather than January 1, 2003)
are as follows:</p>

<p align=right style='margin-left:.25in;text-align:right;
text-indent:-.25in' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:98.14%;margin-left:5.4pt;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">Pro forma amounts of liabilities for asset
 retirement obligations at beginning of year</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">360</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">338</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">Pro forma amounts of liabilities for asset
 retirement obligations at end of year</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">395</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">360</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.25in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
following table describes the changes to the liabilities on asset retirement
obligations for the years ended December
 31, 2004 and 2003, respectively:</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;margin-left:.4pt;border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:8.85pt'>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:8.85pt'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:8.85pt'>
 <p align=right style='margin-right:9.0pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:8.85pt'>
 <p align=right style='margin-right:8.95pt;text-align:right' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Balance at beginning of year</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:9.0pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>395</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.95pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Additional liability recognized during the year</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:9.0pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>177</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.95pt;text-align:right' style="margin-top:0;margin-bottom:0">360</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Accretion expense</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:9.0pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>66</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.95pt;text-align:right' style="margin-top:0;margin-bottom:0">35</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:12.1pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:12.1pt'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Balance at end of year (Note 13)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:12.1pt'>
 <p align=right style='margin-right:9.0pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>638</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:12.1pt'>
 <p align=right style='margin-right:8.95pt;text-align:right' style="margin-top:0;margin-bottom:0"> 395</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.25in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><b><i>Goodwill and Other Intangible
Assets</i></b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Goodwill is the excess of the acquisition cost of a
business, including investments accounted for using the equity method, over the
fair value of the identifiable net assets acquired.  Effective January 1, 2002, we adopted SFAS 142, &#147;Goodwill and Other Intangible Assets&#148; and, as
required, we no longer amortize goodwill (including goodwill recorded on our
equity method investments).  Goodwill is reviewed annually (or more frequently
under various conditions) for impairment using the fair value approach.
Intangible assets that do not have indefinite lives are amortized over their
useful lives and reviewed for impairment in conformity with SFAS 144.  We have
no indefinite-lived intangibles.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">We assessed the impairment of other
identifiable intangibles and goodwill related to our consolidated subsidiaries
under SFAS 121, &#147;Accounting for the Impairment of Long-lived Assets and for
Long-lived Assets to be Disposed of,&#148; whenever events or changes in
circumstances indicated that the carrying value of an asset may not be
recoverable. A determination of impairment (if any) was made based on estimates
of future cash flows.  In instances where goodwill was recorded for assets that
were subjected to an impairment loss, the carrying amount of the goodwill was
eliminated before any reduction was made to the carrying amounts of impaired
long-lived assets and identifiable intangibles.  On a quarterly basis, we
assessed the impairment of enterprise level goodwill under Accounting
Principles Board, or APB, Opinion No. 17, &#147;Intangible Assets&#148;.  A determination
of impairment (if any) was made based primarily on estimates of fair value.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><b><i>Debt Issuance Costs</i></b></p>

<p style='text-indent:40.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:40.5pt' style="margin-top:0;margin-bottom:0">Issuance
costs, underwriting fees and related expenses incurred in connection with the
issuance of debt instruments are deferred and amortized using the effective
interest rate method over the terms of the instruments.  Unamortized debt
issuance costs are charged to operations when the related debt is extinguished.</p>

<p style='text-indent:40.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><b><i>Borrowing Costs</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Borrowing
costs are generally expensed as incurred.  Borrowing costs are capitalized if they
are incurred during the acquisition, construction or production of a qualifying
asset and such costs could have been avoided if expenditures for the assets
have not been made.  Capitalization of borrowing costs commences when the
activities to prepare the asset are in progress and expenditures and borrowing
costs are being incurred.  Borrowing costs are capitalized until the assets are
ready for their intended use.  If the resulting carrying amount of the asset
exceeds its recoverable amount, an impairment loss is recognized.  Borrowing
costs include interest charges and other costs incurred in connection with the
borrowing of funds, excluding exchange differences arising from foreign
currency borrowings used to finance these projects.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><b><i>Retirement Costs</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">PLDT
and Smart have funded noncontributory retirement plans, administered by the
respective companies&#146; Trustee, covering regular employees.  Retirement costs
are actuarially determined using the projected unit credit of accrued benefit
valuation method.  This method reflects services rendered by employees to the
date of valuation and incorporates assumptions concerning employees&#146; projected
salaries.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="OLE_LINK5"><b><i>Stock-Based Compensation</i></b></a></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">We have historically accounted for stock-based
employee compensation plans under APB Opinion No. 25, &#147;Accounting for Stock
Issued to Employees,&#148; and related interpretations, and followed the
disclosure-only provisions of SFAS 123, &#147;Accounting for Stock-Based
Compensation&#148;.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Under
APB Opinion No. 25, compensation cost is measured at the intrinsic value, which
is the difference between market price and exercise price, if any, on the
measurement date.  Under SFAS 123, compensation cost is calculated based on the
fair value of the options granted.  Fair value is determined using an acceptable
option-pricing model based on certain management assumptions.  Compensation
expense is recognized over the performance period.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Pro
forma information regarding net income (loss) and earnings per share is
required by SFAS 123.  This information is required to be determined as if PLDT
had accounted for its employee stock options (including shares issued under the
Employee Stock Purchase Plan, or ESPP, and long-term incentive plan, or LTIP)
using the fair value method.  Under SFAS 123, employee stock options are valued
at the grant date using the Black-Scholes valuation model, and this
compensation cost is recognized ratably over the vesting period.  Had
compensation expense for PLDT&#146;s stock option plan, stock purchase plan and LTIP
been determined based on the fair value at the grant date of awards for years
2004, 2003 and 2002, consistent with the provision of SFAS 123, PLDT&#146;s net
income in 2004 and 2003 would have decreased whereas 2002 net loss would have
increased.  The pro forma amounts indicated below:</p>

<p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:101.2%;margin-left:.4pt;border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:7.1pt'>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in;height:7.1pt'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:7.1pt'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   colspan=2 valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:7.1pt'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   colspan=2 valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:7.1pt'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Basic</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Diluted</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Basic</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Diluted</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Basic</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Diluted</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=6 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in millions of pesos, except per share
 amounts)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net income (loss) attributable to common shareholders </p>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">   (Note 20)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>24,834</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>26,313</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,997</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,251</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(8,807)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(8,807)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:31.5pt;text-indent:-31.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Add:  Total stock-based employee
 compensation expense included in net income (loss)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>239</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>239</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">15</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">15</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:.5in;text-indent:-.5in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Deduct:  Total stock-based employee
 compensation expense determined under fair value based method</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(331)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(331)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(51)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(51)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(127)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(127)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Pro forma net income (loss)
 attributable to common shareholders</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>24,742</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>26,221</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,960</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,214</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(8,919)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(8,919)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Earnings per common share:</p>
 </td>
 <td   colspan=6 valign=bottom style=' border:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">As reported</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>146.32</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>145.30</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">47.20</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">45.72</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(52.08)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(52.08)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Pro forma</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>145.77</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>144.79</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">46.99</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">45.51</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(52.75)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(52.75)</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
dilutive effect of outstanding options is reflected as additional share
dilution in the computation of earnings per common share, see <i>Note 20 &#150;
Earnings Per Common Share</i>.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Leases</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Lease
obligations having provisions for bargain purchase options and ownership
transfer at the end of the lease term, with
a lease term equal to 75% or more of the estimated economic life of the leased
property, or lease obligations where the present value at the beginning of the
lease term of the minimum lease payments (excluding executory costs and taxes
to be paid or paid by the lessor and including any profit thereon) equals or
exceeds 90% of the excess of the fair value of the leased property to the
lessor, are capitalized.  The related
obligations are recognized as liabilities.  Minimum
lease payments are allocated between the
finance charges and reduction of the lease liability so as to achieve a
constant periodic rate of interest on the remaining balance of the
liability.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">A
capital lease gives rise to a depreciation expense for the asset as well as a
borrowing cost for each period.  Finance charges are charged directly to
current operations.  The depreciation policy for leased assets is consistent
with that for depreciable assets that are owned.  </p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Leases where the lessor retains substantially all the
risks and benefits of ownership of the asset are classified as operating
leases.  Initial direct costs incurred in negotiating an operating lease are
deferred and amortized on a straight-line method over the lease term on the
same bases as the lease income.  Operating lease payments are recognized as an
expense in the consolidated statements of income on a straight-line basis over
the lease term.  For income tax reporting purposes, expenses that should have
been incurred under lease agreement are considered as deductible expenses.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Operating
lease expense amounted to Php2,160 million, Php2,166 million and Php3,106
million in 2004, 2003 and 2002, respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><b><i>Advertising and Promotion Expenses</i></b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Advertising and promotions are expensed as incurred.
Advertising and promotion expenses amounted to Php5,002 million, Php2,982
million and Php1,940 million in 2004, 2003 and 2002, respectively. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>Foreign Currency
Transactions and Translations</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">For each entity in the PLDT
Group, transactions in foreign currencies are recorded in the functional
currency of the entity by applying to the foreign currency amount the spot
exchange rate prevailing at the transaction date.  Foreign exchange gains or
losses arising on the spot settlements or restatement of monetary items at
rates different from those at which they were initially recorded during the
period or presented in the previous consolidated financial statements are
recorded in the consolidated statement of income in the period in which they
arise.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Certain subsidiaries of our consolidated group have
functional currencies different from our reporting currency.  The assets and
liabilities of such entities are translated to our reporting currency using
exchange rates at the balance sheet date and the statement of income is
translated using the weighted average rate for the period.  The resulting
translation adjustments are recorded as a component of accumulated other
comprehensive income.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Derivatives and Hedging Instruments</i></b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The Company recognizes all derivatives on the
consolidated balance sheet at fair value.  Derivatives that are not designated
as hedges are recognized at fair value through earnings.  If the derivative is
a hedge, depending on the nature of the hedge, and to the extent of the hedge&#146;s
effectiveness, changes in the fair value of derivatives are either offset
against the change in fair value of hedged assets, liabilities, or firm
commitments through earnings or recognized in other comprehensive income until
the hedged item is recognized in earnings.  The ineffective portion of a
derivative&#146;s change in fair value will be immediately recognized in earnings.
The PLDT Group enters into derivatives that are meant to be economic hedges of
identified underlying instruments and are marked to market directly through
earnings.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><b><i>Income Taxes</i></b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Deferred income tax is provided using the liability
method.  Deferred tax assets and liabilities are recognized for the future tax
consequences attributable to: (a) temporary differences between the financial
reporting bases of assets and liabilities and their related tax bases and (b)
carryforward benefits of net operating loss carryover, or NOLCO, and minimum
corporate income tax, or MCIT.  Deferred tax assets and liabilities are
measured using the tax rates applicable to taxable income in the years in which
those temporary differences are expected to be recovered or settled, and the
carryforward benefits of NOLCO and MCIT are expected to be applied.  A
valuation allowance is provided for deferred tax assets when it is more likely
than not that some or all of the deferred tax assets will not be realized in
the future.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><b><i>Earnings Per Common Share, or EPS</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Basic
EPS is calculated by dividing the net income or loss for the year attributable
to common shareholders by the weighted average number of common shares
outstanding during the year, after giving retroactive effect to any stock
dividend declarations.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Diluted
EPS is calculated in the same manner assuming that, at the beginning of the
year or at the time of issuance during the year, all outstanding options are
exercised and convertible preferred shares are converted to common shares.
Outstanding stock options will have a dilutive effect under the treasury stock
method only when the average market price of the underlying common share during
the period exceeds the exercise price of the option.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Where
the effect of the assumed conversion of the preferred shares and the exercise
of all outstanding options is anti-dilutive, basic and diluted EPS are stated
at the same amounts.</p>

<p style='margin-left:.25in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Management&#146;s Use of Estimates</i></b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
preparation of our consolidated financial statements in conformity with U.S.
GAAP, requires us to make estimates and assumptions that affect the reported
amounts of our assets and liabilities and disclosure of contingent assets and
liabilities at the date of the consolidated financial statements, and the
reported amounts of revenues and expenses during the period reported.  Actual
results could differ from those estimates.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Examples of significant estimates include the
allowance for doubtful accounts, inventory obsolescence, depreciation rate,
impairment of intangibles, investments and other long-lived assets, valuation
allowance on deferred tax assets and pension benefit assumptions.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Concentrations</i></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:35.45pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The PLDT Group&#146;s results of operations and financial
performance and condition may be influenced by the general political situation
in the Philippines.  The Philippines experienced several <i>coup d&#146;&#233;tat</i> attempts
against the government administration between 1986 and 1989, and in July 2003.
Political conditions in the Philippines were generally stable during the 1990&#146;s.  In the past
four years, an increasing number of kidnappings, criminal and terrorist
activities have occurred in Mindanao, principally led by the extremist &#147;Abu Sayyaf&#148; group,
which reportedly has ties to the Al-Qaeda terrorist network.  There were series
of bombing incidents in key cities in Mindanao, including Davao City.  The armed conflict between the Philippine military
and the communist Moro Islamic Liberation Front also continues in Mindanao.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:35.45pt' style="margin-top:0;margin-bottom:0">The
PLDT Group&#146;s results of operations may be negatively affected by slow or
negative growth rates and economic instability in the Philippines
and in Asia.  In the past, the Philippines has experienced periods of slow or
negative growth, high inflation, significant devaluation of the peso, imposition
of exchange controls, debt restructuring and electricity shortages and
blackouts.  From mid-1997 to 1999, the economies of a number of Asian countries
experienced significant downturns.  The regional economic turbulence affected
the Philippine economy in a number of ways, including the depreciation of the
peso, increases in interest rates, increases in unemployment and inflation,
increased volatility and a decline in prices in the domestic stock market, the
downgrading of the Philippines&#146; local currency rating and the ratings outlook
for the Philippine banking sector and the reduction of foreign currency
reserves.  </p>

<p style='text-indent:35.45pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:35.45pt' style="margin-top:0;margin-bottom:0">As
at December 31, 2004, other than the concentration of our wireless
services on prepaid subscribers, we do not have any significant concentration
of business transacted with a particular supplier, lender or former affiliate
that could, if suddenly adversely impacted, severely impact our operations.  We
also do not have a concentration of available sources or other rights that
could, if suddenly eliminated, severely impact our operations.  We invest our
cash and cash equivalents with many high-quality financial institutions.</p>

<p style='text-indent:35.45pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:35.45pt' style="margin-top:0;margin-bottom:0"><b><i>Impact of Recently Issued Accounting Pronouncements</i></b></p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On December 16, 2004,
the Financial Accounting Standards Board, or FASB, issued SFAS 123 (revised
2004), or SFAS 123 (R), &#147;Share-Based Payment,&#148; which is a revision of SFAS
123.  SFAS 123 (R) supersedes APB Opinion No. 25 and related interpretations
amend SFAS 95, &#147;Statement of Cash Flows&#148;.  Generally, the approach in SFAS 123
(R) is similar to the approach described in SFAS 123.  However, SFAS 123 (R)
requires all share-based payments to employees, including grants of employee
stock options, to be recognized in the statement of income based on their fair
values on the date of grant.  Pro forma disclosure is no longer an alternative.
</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">SFAS
123 (R) must be adopted no later than the beginning of the fiscal year
beginning after June 15, 2005.  Early adoption is permitted in periods in which
financial statements have not yet been issued.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;line-height:12.0pt' style="margin-top:0;margin-bottom:0">SFAS
123 (R) permits public companies to adopt its requirements using one of two
methods:</p>

<p style='text-indent:.5in;line-height:12.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;line-height:12.0pt' style="margin-top:0;margin-bottom:0">1.  A &#147;modified prospective&#148; method in
which compensation cost is recognized beginning with the effective date (a)
based on the requirements of SFAS 123 (R) for all share-based payments granted
after the effective date and (b) based on the requirements of SFAS 123 for all
awards granted to employees prior to the effective date of SFAS
123 (R) that remain unvested on the effective date.</p>

<p style='text-indent:.5in;line-height:12.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">2.  A &#147;modified retrospective&#148; method which includes the
requirements of the modified prospective method described above, but also
permits entities to restate based on the amounts previously recognized under SFAS
123 for purposes of pro forma disclosures either (a) all prior periods
presented or (b) prior interim periods of the year of adoption.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We are currently in the process of evaluating any effect on the
adoption of SFAS 123 (R) will have on our consolidated financial statements.</p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
November 2004, the FASB issued SFAS 151, &#147;Inventory Costs,&#148; an amendment of
Accounting Research Bulletin, or ARB, No. 43, Chapter 4.  SFAS 151 amends the
guidance in ARB No. 43, Chapter 4, &#147;Inventory Pricing,&#148; to clarify the
accounting for abnormal amounts of idle facility expense, freight, handling
costs, and wasted materials (spoilage).  Among other provisions, the new rule
requires that items such as idle facility expense, excessive spoilage, double
freight, and rehandling costs be recognized as current-period charges regardless
of whether they meet the criterion of &#147;so abnormal&#148; as stated in ARB No. 43.
Additionally, SFAS 151 requires that the allocation of fixed production
overheads to the costs of conversion be based on the normal capacity of the
production facilities.  SFAS 151 is effective for fiscal years beginning after June 15, 2005.  The
PLDT Group does not expect the adoption of SFAS 151 to have a material effect
on its results of operations or financial condition.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">In
December 2004, the FASB issued SFAS 153, &#147;Exchanges of Nonmonetary Assets,&#148; an
amendment of APB Opinion No. 29, &#147;Accounting for Nonmonetary Transactions&#148;.
SFAS 153 eliminates the exception from fair value measurement for nonmonetary
exchanges of similar productive assets in paragraph 21(b) of APB Opinion No. 29
and replaces it with an exception for exchanges that do not have commercial
substance.  SFAS 153 specifies that a nonmonetary exchange has commercial
substance if the future cash flows of the entity are expected to change
significantly as a result of the exchange.  SFAS 153 is effective for the
fiscal periods beginning after June 15, 2005.  The PLDT Group does not expect
the adoption of SFAS 153 to have a material effect on its results of operations
or financial condition.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;punctuation-wrap:hanging' style="margin-top:0;margin-bottom:0">In May 2005, the FASB issued SFAS 154, &#147;Accounting
Changes and Error Corrections,&#148; a replacement of APB Opinion No. 20,
&#147;Accounting Changes,&#148; and SFAS 3, &#147;Reporting Accounting Changes in Interim
Financial Statements&#148;.  SFAS 154 applies to all voluntary changes in accounting
principles and changes the requirements for accounting for and reporting of a
change in accounting principle.  SFAS 154 carries forward many provisions of
APB Opinion No. 20 without change, including the provisions related to the
reporting of a change in accounting estimate, a change in reporting entity, and
the correction of an error.  SFAS 154 carries forward the provisions of SFAS 3
that govern reporting accounting changes in interim financial statements.  It
requires retrospective application to prior periods&#146; financial statements of a
voluntary change in accounting principle unless it is impracticable.  APB
Opinion No. 20 previously required that most voluntary changes in accounting
principle be recognized by including in net income of the period of the change the
cumulative effect of changing to the new accounting principle.  SFAS 154
requires that a change in method of depreciation, amortization or depletion for
long-lived, nonfinancial assets be accounted for as a change in accounting
estimate that is affected by a change in accounting principle.  APB Opinion No.
20 previously required that such a change be reported as a change in accounting
principle.</p>

<p style='text-indent:.5in;punctuation-wrap:hanging' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;punctuation-wrap:hanging' style="margin-top:0;margin-bottom:0">SFAS 154 is effective for accounting changes and
corrections of errors made in fiscal years beginning after December 15, 2005.
Earlier application is permitted for accounting changes and corrections of
errors made occurring in fiscal years beginning after June 1, 2005.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We are currently in the process of evaluating any effect on the
adoption of SFAS 154 will have on our consolidated financial statements.</p>

<br clear=all
style='page-break-before:always'>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div style='border:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 0in 0in'>

<p style='line-height:50%;page-break-after:avoid;border:none;
padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='margin-left:.5in;text-indent:-.5in;page-break-after:
avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0"><b>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</b><b>Cash
and Cash Equivalents</b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">This account consists of:</p>

<p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.78%;margin-left:.4pt;border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:13.0pt'>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:13.0pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:13.0pt'>
 <p align=right style='margin-right:4.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:13.0pt'>
 <p align=right style='margin-right:4.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cash on hand and in banks</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4,750</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,736</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Temporary investments</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>22,571</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16,636</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>27,321</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">19,372</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Cash
in banks earns interest at the prevailing bank deposit rates.  Temporary
investments are made for varying periods of up to one month depending on our
immediate cash requirements, and earn interest at the prevailing short-term
deposit rates.</p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div style='border:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 0in 0in'>

<p style='line-height:50%;page-break-after:avoid;border:none;
padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='margin-left:.5in;text-indent:-.5in;page-break-after:
avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0"><b>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</b><b>Trade and Other
Receivables</b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">This account
consists of receivables from:</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.78%;margin-left:.4pt;border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:13.0pt'>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:13.0pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:13.0pt'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:13.0pt'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Customers and carriers</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>27,280</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">30,422</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,192</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">879</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>28,472</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">31,301</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Less allowance for doubtful accounts</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>18,068</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14,214 </p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>10,404</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">17,087</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Movements in the allowance for
doubtful accounts are as follows:</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='margin-left:5.4pt;border-collapse:collapse'>
 <tr>
 <td  valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td  valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td  valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=top style=' border:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>
 <tr style='height:12.75pt'>
 <td  valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Balance
 at beginning of year</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>14,214</b></p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">10,750</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">7,697</p>
 </td>
 </tr>
 <tr style='height:12.75pt'>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
 <p style="margin-top:0;margin-bottom:0">Provision for the year</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>3,948</b></p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">4,092</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">4,160</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Write-offs</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(94)</b></p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(628)</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,107)</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Balance at end of year</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>18,068</b></p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">14,214</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">10,750</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Receivables
from carriers represent receivables arising from interconnection agreements
with other telecommunications carriers.  The aforementioned receivable balances
are shown net of related payables to the same telecommunications carriers
because an established right of offset exists.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Unbilled
receivables of Php557 million and Php974 million in 2004 and 2003,
respectively, represent recognized revenue for services rendered to fixed line
and wireless subscribers that have not been billed at the balance sheet dates.
The unbilled amounts are billed upon completion of the corresponding
subscribers&#146; billing cycles.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">On
 October 10, 2002, PLDT entered into a Receivables Purchase Deed, or RPD, with
a foreign financial institution, or the Purchaser, under which PLDT agreed (1)
to sell its receivables from certain eligible foreign carriers for an advance
payment of US$50 million and (2) to service, administer and collect the
receivables on behalf of the Purchaser.  The Purchaser has no recourse against
PLDT should the eligible carrier fail or refuse to settle the
assigned/purchased receivables, except when PLDT commits a breach of its
representations and warranties under the RPD.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">In 2004, 2003 and 2002, sale of receivables under the
RPD amounted to US$10 million (Php576 million), with resulting losses of US$1
million (Php78 million), US$11 million (Php616 million), with resulting losses
of US$1.5 million (Php84 million) and US$3 million (Php165 million), with resulting
losses of US$0.5 million (Php25 million), respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div style='border:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 0in 0in'>

<p style='line-height:50%;page-break-after:avoid;border:none;
padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='margin-left:.5in;text-indent:-.5in;page-break-after:
avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0"><b>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</b><b>Inventories
and Supplies</b></p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">This account consists of:</p>

<p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:101.1%;margin-left:.4pt;border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:8.85pt'>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:8.85pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:8.85pt'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:8.85pt'>
 <p align=right style='margin-right:8.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Terminal and cellular phone units </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,895</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,601</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Spare parts and supplies </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>984</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,318</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>395</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">486</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>3,274</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,405</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Less allowance for inventory
 obsolescence</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,134</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">729</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:9.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,140</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,676</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Movements in the allowance for inventory obsolescence
are as follows:</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0  style='width:472.5pt;margin-left:5.4pt;border-collapse:collapse'>
 <tr>
 <td  valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td  valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td  valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=top style=' border:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>
 <tr style='height:12.75pt'>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt;height:12.75pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Balance at beginning of year</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 height:12.75pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>729</b></p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 height:12.75pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">614</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt;height:12.75pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">286</p>
 </td>
 </tr>
 <tr style='height:12.75pt'>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:12.75pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Provision for the year</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:12.75pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>577</b></p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:12.75pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">251</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:12.75pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">476</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Write-offs</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(172)</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(136)</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(148)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Balance at end of year</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,134</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 729</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 614</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Spare
parts and supplies issued to various projects, included as part of property
under construction shown under <i>Note 7 &#150; Property, Plant and Equipment</i>,
amounted to Php2,277 million and Php3,018 million in 2004 and 2003,
respectively.  </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div style='border:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 0in 0in'>

<p style='line-height:50%;page-break-after:avoid;border:none;
padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='margin-left:.5in;text-indent:-.5in;page-break-after:
avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0"><b>7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</b><b>Property,
Plant and Equipment</b></p>

<p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">This account consists of:</p>

<p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:101.12%;border-collapse:collapse'>

 <tr style='page-break-inside:avoid;height:13.0pt'>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:13.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:13.0pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:13.0pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.2pt;text-align:right' style="margin-top:0;margin-bottom:0">        (in millions of pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Cable
 and wire facilities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>98,732</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">91,898</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Central
 office equipment</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>70,174</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">67,763</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Cellular
 facilities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>58,479</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">52,025</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Vehicles,
 furniture and other work equipment</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>27,492</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">22,968</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Buildings</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>18,974</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">18,590</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Communications
 satellite</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>11,185</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">13,108</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Information
 origination and termination equipment</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,705</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">3,327</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Land
 and land improvements</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,860</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">2,805</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>289,601</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">272,484</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Less accumulated
 depreciation and amortization</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>113,349</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">94,966</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>176,252</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">177,518</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Property under construction</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>9,841</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">12,699</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>186,093</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">190,217</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Interest
capitalized for the years ended December 31, 2004, 2003 and 2002 amounted to
Php595 million, Php887 million and Php1,343 million, respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Assets
impaired in 2004 and 2002 consist of assets of the wireless and fixed line
segments.  In 2003, assets impaired consist of assets of wireless and
information and communications technology segments.  When impairment charges
are recognized, a new cost basis for the assets is established.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
2004, certain assets with net book values aggregating Php365 million were
impaired.  These assets relate primarily to certain international facility
equipment of PLDT Global and Subic Telecom in relation to our strategic
direction to functionally integrate our international fixed line business.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">In
2003, ePLDT and certain of its subsidiaries recognized impairment losses
amounting to Php362 million representing the write-down of certain computer
equipment and peripherals following the abandonment of a reloadable chip-based
cash card project, and certain software and computer equipment following a
change in software platforms and applications.  The recoverable amounts were
based on value in use and were determined at the cash-generating unit level.
In determining value in use for the cash-generating unit, the cash flows were
discounted at a nominal rate of 11% on a pre-tax basis.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
December 2002, Piltel recognized impairment losses of Php13,204 million in
respect of its E.O. 109 limited mobility wireless local loop prepaid assets
with a carrying value of Php14,019 million.  The impairment of E.O. 109 assets
brought down the net book value of these assets to their recoverable value of
Php815 million, which was estimated using the discounted future cash flows from
the E.O. 109 assets.  Cash flows from the E.O. 109 prepaid or limited mobility
service were no longer considered in computing the recoverable value of the
E.O. 109 assets as Piltel terminated this service in February 2003.  Revenues
from the E.O. 109 prepaid or limited mobility service, which used N-AMPS
cellular technology, were unfavorably affected by the success of Piltel&#146;s and
other cellular operators&#146; prepaid GSM cellular service.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Certain
property, plant and equipment include the following amounts for capitalized
leases as at December 31, 2004 and 2003:</p>

<p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:101.04%;margin-left:.4pt;border-collapse:collapse;border-collapse:
 collapse !msorm'>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-top:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>December
 31, 2004</b></p>
 </td>
 <td   colspan=3 valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">December
 31, 2003</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.95pt' style='page-break-inside:
 avoid !msorm;height:3.95pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;height:3.95pt'>
 <p style='line-height:80%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;height:3.95pt'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 line-height:80%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Central office equipment</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:3.95pt'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 line-height:80%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Vehicles, furniture and other work equipment</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:3.95pt'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 line-height:80%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 <p align=center style='margin-right:2.9pt;text-align:center;
 line-height:80%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 <p align=center style='margin-right:2.9pt;text-align:center;
 line-height:80%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 <p align=center style=';text-align:center;
 line-height:80%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Total</b></p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.95pt'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 line-height:80%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;height:3.95pt'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 line-height:80%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Central office equipment</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;height:3.95pt'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 line-height:80%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Vehicles, furniture and other work equipment</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;height:3.95pt'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 line-height:80%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 <p align=center style='margin-right:2.9pt;text-align:center;
 line-height:80%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 <p align=center style='margin-right:2.9pt;text-align:center;
 line-height:80%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 <p align=center style=';text-align:center;
 line-height:80%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.95pt' style='page-break-inside:
 avoid !msorm;height:3.95pt !msorm'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:3.95pt'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=9 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.95pt'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in
 millions of pesos)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cost</p>
 </td>
 <td   style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style=';margin-right:
 13.45pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>361</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>863</b></p>
 </td>
 <td   colspan=2 valign=top style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,224</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style=';margin-right:
 13.45pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">354</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">574</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">928</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Less
 accumulated depreciation</p>
 </td>
 <td   style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style=';margin-right:
 13.45pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>269</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>410</b></p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>679</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style=';margin-right:
 13.45pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">244</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">153</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">397</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style=';margin-right:
 13.45pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>  92</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b> 453</b></p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b> 545</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style=';margin-right:
 13.45pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 110</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 421</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.2in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 531</p>
 </td>
 </tr>
 <tr height=0>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><a name="OLE_LINK2">Depreciation expense for assets reported under
capitalized leases amounted to Php282 million, Php110 million and Php69 million
in 2004, 2003 and 2002, respectively.</a></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
2004 and 2003, Smart changed the estimated useful lives of certain network
assets owing to continuing network expansion and upgrade.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Below
is the pro forma financial information assuming no changes in accounting
estimates were made during 2004 and 2003:</p>

<p align=right style='text-align:right;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:98.14%;margin-left:5.4pt;border-collapse:collapse'>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style=';;text-align:center' style="margin-top:0;margin-bottom:0">(in millions of
 pesos, except per share amounts)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">Net income</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">As
 reported</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>28,101</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">11,045</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Pro
 forma</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>30,319</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">12,346</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">Earnings per common share &#150; basic</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">As
 reported</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>146.32</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">47.20</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Pro
 forma</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>159.38</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">54.88</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">Earnings per common share &#150; diluted</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">As
 reported</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>145.30</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">45.72</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Pro
 forma</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>157.55</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">52.92</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Under
the terms of certain loan agreements, PLDT may not create, incur, assume,
permit or suffer to exist any mortgage, pledge, lien or other encumbrance or
security interest over the whole or any part of its assets or revenues or
suffer to exist any obligation as lessee for the rental or hire of real or
personal property in connection with any sale and leaseback transaction.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div style='border:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 0in 0in'>

<p style='line-height:50%;border:none;padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='margin-left:.5in;text-indent:-.5in;punctuation-wrap:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0"><b>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</b><b>Investments</b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">This
account consists of:</p>

<p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse'>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Investments in shares of
 stock:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt' style="margin-top:0;margin-bottom:0">Acquisition
 cost</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>3,412</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.65pt;text-align:right' style="margin-top:0;margin-bottom:0">3,278</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt' style="margin-top:0;margin-bottom:0">Less
 accumulated equity in net losses</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>3,404</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.65pt;text-align:right' style="margin-top:0;margin-bottom:0">1,830</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>   8</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.65pt;text-align:right' style="margin-top:0;margin-bottom:0">1,448</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt' style="margin-top:0;margin-bottom:0">At
 equity:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Mabuhay
 Space Holdings Limited, or MSHL</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.65pt;text-align:right' style="margin-top:0;margin-bottom:0">763</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>8</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.65pt;text-align:right' style="margin-top:0;margin-bottom:0">54</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>   8</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.65pt;text-align:right' style="margin-top:0;margin-bottom:0"> 817</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt' style="margin-top:0;margin-bottom:0">At
 cost:</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Stradcom
 International Holdings, Inc., or SIHI</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.65pt;text-align:right' style="margin-top:0;margin-bottom:0">629</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.65pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.65pt;text-align:right' style="margin-top:0;margin-bottom:0"> 631</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>   8</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.65pt;text-align:right' style="margin-top:0;margin-bottom:0">1,448</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Investments in debt
 security:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt' style="margin-top:0;margin-bottom:0">Acquisition
 cost</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>286</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt' style="margin-top:0;margin-bottom:0">Less
 accumulated impairment loss</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b> 286</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.65pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b> 294</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.65pt;text-align:right' style="margin-top:0;margin-bottom:0">1,448</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Investment of ACeS </i></b><b><i>Philippines</i></b><b><i> in ACeS International Limited, or AIL</i></b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">As at December
 31, 2004, ACeS Philippines had a 20.23%
investment in AIL, a company incorporated under the laws of Bermuda.  AIL
owns the Garuda I Satellite and the related system control equipment in Batam, Indonesia.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
December 1998, AIL and its 95% owned subsidiary, PT Asia Cellular Satellite,
entered into an Amended and Restated Credit Agreement, or Amended Agreement, to
amend the original Credit Agreement entered into by PT Asia Cellular Satellite
and its bank creditors in 1997.  Under the Amended Agreement, AIL has, among
others, assigned to the banks as collateral all of its intangible properties,
including the Garuda I Satellite, the system control facilities and system
control equipment.  On September 30, 2002, PT Asia Cellular Satellite, AIL, as
guarantor, P.T. Bank International Indonesia, as security agent, and various
banks signed the Rescheduling Agreement, which amended the terms of the Amended
and Restated Credit Agreement dated December 29, 1998, moving the principal
repayment dates to agreed periods with the final maturity date on January 31,
2012.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Investment of Mabuhay Satellite in MSHL</i></b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On July 18, 1996,
Mabuhay Satellite entered into a Joint Venture Agreement, or JVA, with Space
Systems/Loral Inc., or SS/L, to form MSHL for the purpose of providing
high-power Ku-Band satellite transmission services using the payload service
which was added by SS/L aboard Agila II.  Under the terms of the JVA SS/L is
required to convey title to the additional payload service to MSHL in
consideration for SS/L&#146;s 35% equity interest in MSHL and Mabuhay Satellite is
required to pay SS/L US$19 million for a 65% equity interest in MSHL.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
2000, SS/L filed a Notice of Default and Termination against Mabuhay Satellite
arising from the Mabuhay Satellite&#146;s alleged failure to amicably resolve its
alleged unpaid obligation to SS/L under the JVA.  In 2002, the arbitration
panel handed down its decision and provided for payment by Mabuhay Satellite to
SS/L of the principal amount of US$10 million plus accrued interest at 9% per
annum.  On June 30, 2003, Mabuhay Satellite and SS/L concluded a settlement
agreement whereby Mabuhay Satellite will lease two (2) transponders under a
transponder agreement on a full-time basis to SS/L and offset the lease charges
from Loral Skynet Network Services, Inc. (formerly Loral Cyberstar, Inc., an
affiliate of SS/L), among others, for a full and final settlement of the
arbitration decision.  The settlement agreement provides that notwithstanding
any provision therein to the contrary, the settlement agreement, and the
transponder agreement may terminate upon failure by Mabuhay Satellite, within
nine months from the execution of the settlement agreement or such other period
as the parties may agree upon, to secure the consent of the Philippine
creditors of Mabuhay Satellite pursuant to the Omnibus Credit and Security
Agreement, or Omnibus Agreement, dated December 14, 1995, as amended, between
Mabuhay Satellite and such creditors.  Under the Omnibus Agreement, approval of
creditors holding at least 51% of the outstanding principal amount of the loan
obligations of Mabuhay Satellite is required for purposes of transfer or
disposition of any collateral under the Omnibus Agreement.  As at December 31, 2003,
the consent of the said creditors had not been obtained, hence, the
transaction, which would have resulted in a net gain of Php175 million, was not
recognized by Mabuhay Satellite in 2003.  On March 18, 2004, the majority of
the creditors has given their consent to the settlement agreement and
therefore, the related gain was recognized in 2004.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Investment in SIHI</i></b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">ePLDT has a 22.5% interest in convertible securities
of SIHI, the parent company of Stradcom Corporation, which has an existing
concession agreement with the Philippine Government for the modernization of
the Philippine Land Transportation Office, including the computerization of
driver&#146;s license issuance, vehicle registration and traffic adjudication
systems.  SIHI has been incurring losses from the start of operations due to
Stradcom Corporation&#146;s continuous losses and consistent excess of current
liabilities over current assets.  In addition, Stradcom Corporation has
defaulted certain provisions of its loan covenants.  On this basis, we
recognized an impairment provision in respect of our investment in SIHI of
Php616 million in 2004.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-right:1.8pt' style="margin-top:0;margin-bottom:0"><b><i>Summarized Financial Information of Equity Investees</i></b></p>

<p style='margin-right:1.8pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-right:1.8pt;text-indent:35.45pt' style="margin-top:0;margin-bottom:0">The following table presents summarized financial
information in conformity with U.S. GAAP for equity investees for which we have
significant influence as at December 31,
 2004 and 2003 and for the years ended December 31, 2004,
2003 and 2002.</p>

<p style='margin-right:1.8pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0  style='width:472.9pt;;border-collapse:collapse;border-collapse:
 collapse !msorm'>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-left:.25in;text-align:right;
 text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td  valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=top style=' border:none;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style=';margin-right:
 3.05pt;text-align:right;text-indent:9.0pt' style="margin-top:0;margin-bottom:0">(in
 millions of pesos)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Current assets</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>638</b></p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0">754</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Noncurrent assets</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,648</b></p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0">1,672</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Current liabilities</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,444</b></p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0">1,082</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Noncurrent liabilities</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>12,100</b></p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0">12,583</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Capital deficiency</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:3.05pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(11,258)</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:3.05pt;text-align:right' style="margin-top:0;margin-bottom:0">(11,239)</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-right:1.8pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0  style='width:472.9pt;;border-collapse:collapse;border-collapse:
 collapse !msorm'>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:white;padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=left style='text-align:left;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:white;padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td  valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:white;padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td  valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:white;padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">
 (in millions of pesos)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=left style='text-align:left;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Revenues</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,299</b></p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,182</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">953</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Revenues less cost of revenues</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,013</b></p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">600</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">269</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Expenses</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>592</b></p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">758</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">23,163</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td  valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net loss</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>19</b></p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">926</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">20,214</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-right:1.8pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>Investment of ePLDT in
Debt Securities of Technology Support Services, Inc. (formerly First Advance
Multi-Media Entertainment Corp., or FAME)</i></b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">On June 1, 2004, ePLDT and FAME
entered an agreement whereby ePLDT granted a seven-year non-interest-bearing
loan to FAME amounting to US$3.1 million.  At the option of ePLDT, the loan is
convertible into 20% of the total outstanding capital stock of FAME at any time
during the life of the outstanding loan.  </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On August 20, 2004, FAME
changed its corporate name into Technology Support Services, Inc., or TSSI.</p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">On September 14, 2004, ePLDT entered into a second
agreement with TSSI whereby ePLDT granted another seven-year
non-interest-bearing loan to TSSI amounting up to US$3.1 million.  At the
option of ePLDT, the loan is convertible into another 20% of the outstanding
capital stock of TSSI at any time during the life of the outstanding loan.  As
at December 31, 2004, aggregate loans of ePLDT to TSSI amounted to US$5.1
million.  The remaining balance of the loans of US$1.1 million will be released
to TSSI subject to meeting certain conditions.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">ePLDT
had not converted its investment in debt securities to TSSI&#146;s shares of stock
as at <br>
 December 31, 2004.  TSSI is a systems integrator for the internet and mobile
telephone gaming project.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
fair value of the debt instrument was computed as the present value of
estimated future cash flows.  The cost of the instrument approximates the fair
value computed as at December 31, 2004.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div style='border:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 0in 0in'>

<p style='line-height:50%;page-break-after:avoid;border:none;
padding:0in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

</div>

<p style='margin-left:.5in;text-indent:-.5in;page-break-after:
avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0"><b>9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</b><b>Goodwill
and Other Intangible Assets</b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='text-indent:35.45pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">This account consists of:</p>

<p align=right style='text-align:right;text-indent:.5in;
page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.72%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Goodwill</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>24,736</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">23,800</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Other intangible assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,959</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,705</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>27,695</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">26,505</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Less accumulated amortization</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>11,134</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,041</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.6pt'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:7.6pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>16,561</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">15,464</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Movements
in accumulated amortization of goodwill and other intangible assets are as
follows:</p>

<p align=right style='text-align:right;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.84%;border-collapse:collapse;width:100.84% !msorm;border-collapse:
 collapse !msorm'>
 <tr style='page-break-inside:avoid;height:15.45pt' style='page-break-inside:
 avoid !msorm;height:15.45pt !msorm'>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:white;padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm;height:15.45pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:white;padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm;height:15.45pt'>
 <p align=right style='margin-right:6.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:white;padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm;height:15.45pt'>
 <p align=right style='margin-right:6.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:white;padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm;height:15.45pt'>
 <p align=right style='margin-right:6.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:12.45pt' style='page-break-inside:
 avoid !msorm;height:12.45pt !msorm'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:12.45pt'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:12.45pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">
 (in millions of pesos)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:12.0pt' style='page-break-inside:
 avoid !msorm;height:12.0pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:12.0pt'>
 <p style="margin-top:0;margin-bottom:0">Balance at beginning of
 year</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:12.0pt'>
 <p align=right style='margin-right:6.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>11,041</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:12.0pt'>
 <p align=right style='margin-right:6.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,275</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:12.0pt'>
 <p align=right style='margin-right:6.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9,509</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:12.0pt' style='page-break-inside:
 avoid !msorm;height:12.0pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:12.0pt'>
 <p style="margin-top:0;margin-bottom:0">Amortization</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:12.0pt'>
 <p align=right style='margin-right:6.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>93</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:12.0pt'>
 <p align=right style='margin-right:6.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">766</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:12.0pt'>
 <p align=right style='margin-right:6.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">766</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:13.15pt' style='page-break-inside:
 avoid !msorm;height:13.15pt !msorm'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm;height:13.15pt'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Balance
 at end of year</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm;height:13.15pt'>
 <p align=right style='margin-right:6.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>11,134</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm;height:13.15pt'>
 <p align=right style='margin-right:6.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,041</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm;height:13.15pt'>
 <p align=right style='margin-right:6.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,275</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
customers list was fully amortized as at December 31, 2003.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b><i>Goodwill</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Movements
in goodwill per reportable segments are as follows:</p>

<p align=right style='text-align:right;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.48%;margin-left:.4pt;border-collapse:collapse;border-collapse:
 collapse !msorm'>
 <tr>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Wireless</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Fixed Line</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p style='page-break-after:auto' style="margin-top:0;margin-bottom:0">Information
 and Communications Technology</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Total</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=4 valign=top style=' border:none;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:31.5pt;text-align:center;
 text-indent:49.45pt' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Balances
 as at December 31, 2001</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">14,768</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">426</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">97</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">15,291</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Addition during the year</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Amortization during the
 year</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Balances as at December 31, 2002</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">14,768</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0"> 426</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">  97</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">15,291</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Addition during the year</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">173</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0"> 173</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Amortization during the
 year</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Balances as at December 31, 2003</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">14,941</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0"> 426</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">  97</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">15,464</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Addition during the year</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">1,019</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">90</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">1,109</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Reclassification during the
 year</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">(173)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">(173)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Amortization during the
 year</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0"><b>Balances
 as at </b><b>December 31, 2004</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>15,787</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0"><b> 426</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0"><b> 187</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>16,400</b></p>
 </td>
 </tr>
</table></center></div>

<p align=right style='text-align:right;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
goodwill is almost entirely related to the wireless business segment due to our
acquisition of Smart and Meridian.  We completed our transitional and annual evaluation
of the goodwill value in conformity with SFAS 142 and consistent with our
increase in wireless subscribers and revenues, there is no impairment in the
goodwill value.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b><i>Other
Intangible Assets</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">On October 31, 2003, Smart acquired
an 80% interest in Wolfpac for a total consideration of Php180 million, of
which Php90 million was paid in 2003 and the balance was paid in April 2004.
Prior to the acquisition, Wolfpac was one of Smart&#146;s leading content
providers.  The acquisition provides Smart with the opportunity to have a
direct link to the content development community, an important factor in
wireless communication services.  The purchase consideration has been allocated
to identifiable assets and liabilities on the basis of fair values at the date
of acquisition.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
fair values of the identifiable acquired assets and liabilities of Wolfpac are
as follows:</p>

<p align=right style='text-align:right;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.72%;border-collapse:collapse'>
 <tr>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:4.65pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cash and cash equivalents</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:56.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Receivables</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:56.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Prepayments and other current assets</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:56.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Property, plant and equipment</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:56.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Intangible assets &#150; technology applications</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:56.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">254</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:56.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 265</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Accounts payable</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:53.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Due to related parties</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:53.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Deferred income tax liabilities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:53.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(81)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:53.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(85)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:56.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 180</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Fair
value of intangible assets was determined by discounting Wolfpac&#146;s cash flows
for the three years after the acquisition date at 8% per annum.  The net cash
outflow on acquisition was Php173 million, representing cash payment of Php180
million and cash acquired from Wolfpac of Php7 million.  Intangible assets
acquired from Wolfpac are amortized over their estimated useful life of three
years.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On July 5, 2004, Smart
entered into a sale and purchase agreement, as amended and supplemented on August 11, 2004, to
acquire 100% of Meridian, a company primarily engaged in providing wireless
broadband and data services to small and medium-scale enterprises in the Philippines,
for a total consideration of US$45 million.  Payments of US$11 million and US$7
million for an equity interest of 40% in Meridian were made in 2004 and
payments of US$4 million for an additional equity interest of 9% in Meridian
was made in January 2005.  The balance of US$23 million is payable on or before
December 31, 2005 in respect of the remaining 51% equity interest in Meridian.  The
acquisition aims to strengthen Smart&#146;s position in the wireless data segment
and is in line with Smart&#146;s overall strategy of providing the widest range of
innovative wireless services.  As at December 31, 2004, the net cash outflow on
acquisition was Php1,051 million, representing cash payments of Php1,004 million,
cash acquired from Meridian of Php4 million and cost directly related to
business combination of Php51 million.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
purchase consideration has been allocated to the assets and liabilities on the
basis of fair values at the date of acquisition.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
fair values of the identifiable acquired assets and liabilities of Meridian are
as follows:</p>

<p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.72%;border-collapse:collapse'>

 <tr>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:4.65pt;text-align:center' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Cash and cash
 equivalents</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:56.2pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Receivables</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:56.2pt;text-align:right' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Inventories and
 supplies</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:56.2pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Prepayments</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:56.2pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Other current assets</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:56.2pt;text-align:right' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Property, plant and
 equipment</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:56.2pt;text-align:right' style="margin-top:0;margin-bottom:0">69</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Goodwill</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:56.2pt;text-align:right' style="margin-top:0;margin-bottom:0">1,019</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:56.2pt;text-align:right' style="margin-top:0;margin-bottom:0">1,111</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Accrued and other
 current liabilities</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:53.3pt;text-align:right' style="margin-top:0;margin-bottom:0">(51)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Due to related parties</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:53.3pt;text-align:right' style="margin-top:0;margin-bottom:0">(5)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:53.3pt;text-align:right' style="margin-top:0;margin-bottom:0">(56)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Net assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:56.2pt;text-align:right' style="margin-top:0;margin-bottom:0">1,055</p>
 </td>
 </tr>
</table></center></div>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Meridian has been included in the 2004 consolidated financial
statements using the purchase method of accounting, which resulted in goodwill
amounting to Php1,019 million.  Smart is in the process of determining
valuations of certain intangible assets of Meridian.  Thus, the allocation of the purchase price is
subject to refinement.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following unaudited pro forma consolidated
financial information reflects the results of our operations for the years
ended December 31, 2004 and 2003, as if the acquisition of Meridian had
occurred on January 1, 2003.  These pro forma results have been prepared for
comparative purposes only and do not purport to be indicative of what the operating
results of Meridian would have been had the acquisition actually taken place on
January 1, 2003 and may not be indicative of future operating results.</p>

<p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:98.92%;margin-left:5.4pt;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-top:0in;;
 margin-bottom:0in;margin-left:12.55pt;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0">(in millions of pesos, <br>
 except per share amounts)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">Operating revenues</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">As
 reported</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>121,221</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">111,200</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Pro
 forma</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>121,319</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">111,319</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">Income before cumulative effect of change in accounting
 policy</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">As
 reported</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>28,101</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">11,106</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Pro
 forma</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>28,108</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">11,095</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">Net income</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">As
 reported</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>28,101</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">11,045</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Pro
 forma</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>28,108</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">11,034</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">Earnings per common share &#150; basic</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">As
 reported</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>146.32</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">47.20</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Pro
 forma</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>146.36</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">47.14</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">Earnings per common share &#150; diluted</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">As
 reported</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>145.30</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">45.72</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Pro
 forma</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>145.34</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.5pt;text-align:right' style="margin-top:0;margin-bottom:0">45.66</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">There is no related 2002 pro forma disclosure on
Wolfpac since it was only incorporated in October 2003.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Movements
in intangible assets per reportable segments are as follows:</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.78%;margin-left:.4pt;border-collapse:collapse;border-collapse:
 collapse !msorm'>
 <tr>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Wireless</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Fixed Line</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p style='page-break-after:auto' style="margin-top:0;margin-bottom:0">Information
 and Communications Technology</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Total</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=4 valign=top style=' border:none;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:31.5pt;text-align:center;
 text-indent:49.45pt' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Balances as at December 31, 2001</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">1,532</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">1,532</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Addition during the year</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Amortization during the year</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">(766)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">(766)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Balances as at December 31, 2002</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0"> 766</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0"> 766</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Addition during the year</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Amortization during the year</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">(766)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">(766)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Balances as at December 31, 2003</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Addition during the year</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">254</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0"> 254</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Amortization during the year</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">(93)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">(93)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0"><b>Balances as at </b><b>December 31, 2004</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0"> 161</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0"> 161</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The unamortized intangible assets
of Php161 million as at December 31, 2004 will be amortized in 2005 (Php84 million) and 2006
(Php77 million).</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div style='border:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 0in 0in'>

<p style='line-height:50%;border:none;padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0"><b>10.    Other Noncurrent Assets</b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">This
account consists of:</p>

<p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.72%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.45pt;text-align:right' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Telephone
 instruments - net</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>3,317</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0">1,438</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Debt
 issuance costs - net</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,122</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0">2,023</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Refundable
 deposits</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>490</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0">429</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>702</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0">718</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.2pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:11.2pt'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:11.2pt'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>5,631</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:11.2pt'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0">4,608</p>
 </td>
 </tr>
</table></center></div>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div style='border:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 0in 0in'>

<p style='line-height:50%;border:none;padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0"><b>11.    Accrued Expenses and
Other Current Liabilities</b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">This
account consists of:</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.72%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 </tr>
 <tr style='height:6.2pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:6.2pt'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;height:6.2pt'>
 <p align=right style='margin-right:2.45pt;text-align:right' style="margin-top:0;margin-bottom:0">           (in millions of pesos)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Accrued utilities and general expenses</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>4,457</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0">3,847</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Accrued
 taxes and other expenses</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>3,256</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0">2,520</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Accrued
 satellite air time cost and provisions (Notes 21 and 22)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,954</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0">1,992</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Accrued interests on various loans</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,235</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0">2,377</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Accrual for payment for unused sick leave and other
 employee benefits</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,624</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0">1,362</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,048</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0">1,415</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.55pt'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:7.55pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:7.55pt'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>16,574</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:7.55pt'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0">13,513</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Over the past years, PLDT has
been implementing its manpower rightsizing program, or MRP, in line with its
continuing effort to reduce the cost base of its fixed line business.  The MRP
cost charged to operations for the years ended December 31, 2004, 2003 and 2002
amounted to Php566 million, Php1,565 million, including a loss on settlement of
Php117 million, and Php324 million, primarily representing charges relating to
745, 1,862 and 374 PLDT employees affected by the program, respectively;
unrecognized past service costs, which are normally amortized over the
estimated remaining average working lives of employees, in respect of employees
who availed of the MRP are recognized as loss on settlement.  The decision to
implement the MRP was anchored on the challenges being faced by the fixed line
business as significant changes in technology, increasing competition, and
shifting market preferences to cellular use have reshaped the future of the
fixed line business.  The MRP was implemented under the Philippine New Labor
Code and is in compliance with all other relevant labor laws and regulations.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Movements
in the accrued MRP cost accounts, included under accrual for payment for unused
sick leave and other employee benefits during the years, are as follows:</p>

<p align=right style='text-align:right;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.84%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.45pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:8.45pt'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;height:8.45pt'>
 <p align=center style='margin-right:2.2pt;text-align:center' style="margin-top:0;margin-bottom:0">                   (in millions of pesos)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Balance at beginning of year</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>16</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0">87</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Cost
 for the year (Notes 18 and 24)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>566</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0">1,565</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0">324</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Payments</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(</b><b>534</b><b>)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">(1,636)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">(237)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Balance at end of year</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>48</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0">16</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right' style="margin-top:0;margin-bottom:0">87</p>
 </td>
 </tr>
</table></center></div>

<p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div style='border:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 0in 0in'>

<p style='line-height:50%;page-break-after:avoid;border:none;
padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
page-break-after:avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">12.    Interest-bearing Financial Liabilities</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">This account consists of the following:</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.72%;border-collapse:collapse'>

 <tr>
 <td   valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">          (in
 millions of pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Long-term portion of interest-bearing financial
 liabilities</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Long-term debt</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>131,377</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">160,464</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Obligations under capital lease (Note 7)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>601</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">729</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>131,978</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">161,193</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Interest-bearing financial liabilities maturing within one year</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Notes payable:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:22.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Bank loans</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>58</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">200</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:22.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Commercial paper</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,933</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Obligations under capital lease maturing within one
 year (Note 7)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>425</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">295</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Long-term debt maturing within one year</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>28,020</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">23,810</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>28,503</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">26,238</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.25in;text-align:justify;text-indent:
- -.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>Long-term Debt</i></b></p>

<p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Long-term
debt consists of:</p>

<p align=right style='margin-left:.25in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.78%;margin-left:.4pt;border-collapse:collapse;border-collapse:
 collapse !msorm'>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Description</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Interest Rates</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:.25in;text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=4 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0"><i>U.S.
 Dollars</i></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.35pt;text-align:justify' style="margin-top:0;margin-bottom:0">Export Credit Agencies-Supported Loans:</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Kreditanstalt
 f&#252;r Wiederaufbau, or KfW</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">5.65%
 - 8.03% and US$ LIBOR + 0.55% - 2.5%</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>US$351</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Php19,793</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">US$398</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php22,099</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Finnish
 Export Credit or Finnvera</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">6.36%
 - 7.75% and US$ LIBOR + 1.30% - 1.425%</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>162</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>9,128</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">257</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">14,296</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Nippon Export
 and Investment Insurance <br>
 of Japan, or NEXI</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">US$
 LIBOR +1%</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>75</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>4,226</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">60</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,335</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Japan Bank for International Cooperation, or <br>
 JBIC/Co-financing Banks</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">6.56%
 - 7.95% and US$ LIBOR + 0.65% - 1.55%</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>44</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,459</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">66</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,644</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">5.83%
 - 7.89% and US$ LIBOR + 0.15% - 4.30% and GOVCO&#146;s cost + 0.20%</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>104</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>5,878</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">146</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">8,144</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>736</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>41,484</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">927</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">51,518</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-align:justify' style="margin-top:0;margin-bottom:0">Fixed Rate Notes</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">7.85%
 - 11.375%</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,236</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>69,652</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,414</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">78,581</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-align:justify' style="margin-top:0;margin-bottom:0">Term Loans:</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Debt
 Exchange Facility</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">2.25%
 and US$ LIBOR + 1%</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>283</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>15,959</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">GSM
 Network Expansion Facilities</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">4.49%
 and US$ LIBOR + 3.25%</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>126</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>7,089</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">30</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,698</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:27.0pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Nederlandse Financierings-Maatschappij Voor</p>
 <p style='margin-left:26.6pt' style="margin-top:0;margin-bottom:0">Ontwikkelingslanden
 N.V., or FMO</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">US$
 LIBOR + 1.95% - 2.05%</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>51</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,862</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">75</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,161</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:27.0pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Multi-currency Term Loan</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">US$
 LIBOR + 3.65%</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">53</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,961</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">5.83%
 and LIBOR + 0.40% - 3.625%</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>33</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,863</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">43</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,368</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-align:justify' style="margin-top:0;margin-bottom:0">Restructured Loans</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">3M
 US$
 LIBOR + 1%</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>119</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>6,702</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">192</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">10,632</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-align:justify' style="margin-top:0;margin-bottom:0">Satellite Acquisition Loans</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">US$
 LIBOR + 1.75% and 5.6%</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>72</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>4,064</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">85</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,722</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>US$</b><b>2,656</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>149,675</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">US$2,819</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">156,641</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0"><i>Japanese
 Yen</i></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.25in;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">JBIC&#146;s Overseas Investment Loan, or OIL</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">2.125%</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>JP&yen;9,760</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>5,363</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">JP&yen;9,760</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">5,068</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:.25in;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Export Credit Agency-Supported Loan:  <br>
 NEXI Supported Loan</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">JP&yen;
 LIBOR + 1.70%</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,205</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,212</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:8.6pt;text-align:justify' style="margin-top:0;margin-bottom:0">Multi-currency Term Loan</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">JP&yen;
 LIBOR + 3.85%</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">10,914</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">5,668</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:8.6pt;text-align:justify' style="margin-top:0;margin-bottom:0">Restructured Loans</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">JP&yen;
 LIBOR + 1%</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">15,644</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">8,124</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>JP&yen;</b><b>11,965</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>6,575</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">JP&yen;36,318</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">18,860</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0"><i>Philippine
 Peso</i></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-align:justify' style="margin-top:0;margin-bottom:0">Peso Fixed Rate Corporate Notes</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">14%
 - 15.816%</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,680</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,180</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-align:justify' style="margin-top:0;margin-bottom:0">Term Loans:</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:17.6pt;text-align:justify' style="margin-top:0;margin-bottom:0">JBIC 4 Program</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">11.18%</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>680</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,284</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:17.6pt;text-align:justify' style="margin-top:0;margin-bottom:0">Secured Term Loans</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">11.6%
 - 24% and 91-day T-Bill + 4% and 90-day PHIBOR + 3%</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>305</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">130</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Other
 Unsecured Term Loans</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">12.81%
 - 17.5%</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">554</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-align:justify' style="margin-top:0;margin-bottom:0">Restructured Loans</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">90-day
 T-Bill + 1%</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>482</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,625</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>3,147</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">8,773</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>159,397</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">184,274</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Less
 portion maturing within one year</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>28,020</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">23,810</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;punctuation-wrap:
 hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">Long-term debt - net of
 current portion</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Php131,377</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php160,464</p>
 </td>
 </tr>
</table></center></div>

<p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
scheduled maturities of our outstanding consolidated long-term debt as at December 31, 2004 are as follows:</p>

<p align=right style='margin-left:.25in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.88%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:7.75pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>U.S. Dollar Loans</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:7.75pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>JP</b><b>Y</b><b> Loans</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:.25pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Php Loans</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:7.75pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Total</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:.05pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>In U.S. Dollar</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:4.65pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>In Php</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:4.65pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>In JP</b><b>Y</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:4.65pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>In Php</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:4.65pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>In Php</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:4.65pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>In Php</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=6 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:7.75pt;text-align:center' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b>Year</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.05pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.6pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.05pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:18.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:10.45pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">2005</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">448</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.05pt;text-align:right' style="margin-top:0;margin-bottom:0">25,272</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.6pt;text-align:right' style="margin-top:0;margin-bottom:0">3,420</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.05pt;text-align:right' style="margin-top:0;margin-bottom:0">1,879</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:18.25pt;text-align:right' style="margin-top:0;margin-bottom:0">869</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:10.45pt;text-align:right' style="margin-top:0;margin-bottom:0">28,020</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">410</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.05pt;text-align:right' style="margin-top:0;margin-bottom:0">23,126</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.6pt;text-align:right' style="margin-top:0;margin-bottom:0">3,418</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.05pt;text-align:right' style="margin-top:0;margin-bottom:0">1,878</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:18.25pt;text-align:right' style="margin-top:0;margin-bottom:0">863</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:10.45pt;text-align:right' style="margin-top:0;margin-bottom:0">25,867</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">487</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.05pt;text-align:right' style="margin-top:0;margin-bottom:0">27,439</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.6pt;text-align:right' style="margin-top:0;margin-bottom:0">3,418</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.05pt;text-align:right' style="margin-top:0;margin-bottom:0">1,879</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:18.25pt;text-align:right' style="margin-top:0;margin-bottom:0">78</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:10.45pt;text-align:right' style="margin-top:0;margin-bottom:0">29,396</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">2008</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.05pt;text-align:right' style="margin-top:0;margin-bottom:0">5,583</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.6pt;text-align:right' style="margin-top:0;margin-bottom:0">1,709</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.05pt;text-align:right' style="margin-top:0;margin-bottom:0">939</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:18.25pt;text-align:right' style="margin-top:0;margin-bottom:0">67</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:10.45pt;text-align:right' style="margin-top:0;margin-bottom:0">6,589</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">2009</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">251</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.05pt;text-align:right' style="margin-top:0;margin-bottom:0">14,118</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.05pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:18.25pt;text-align:right' style="margin-top:0;margin-bottom:0">56</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:10.45pt;text-align:right' style="margin-top:0;margin-bottom:0">14,174</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">2010 and onwards</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">960</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.05pt;text-align:right' style="margin-top:0;margin-bottom:0">54,137</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.05pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:18.25pt;text-align:right' style="margin-top:0;margin-bottom:0">1,214</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:10.45pt;text-align:right' style="margin-top:0;margin-bottom:0">55,351</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i><u>U.S. Dollar Debt:</u></i></p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style="margin-top:0;margin-bottom:0"><i>Export Credit Agencies-Supported
Loans</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
order to obtain imported components for our network infrastructure in
connection with our expansion and service improvement programs, we have
obtained loans extended and/or guaranteed by various export credit agencies.
These financings account for a significant portion of our indebtedness.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Kreditanstalt f&#252;r Wiederaufbau, or KfW</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">KfW,
a German state-owned development bank, is PLDT&#146;s largest single creditor.  As
at December 31, 2004, we owed US$351 million aggregate principal amount of
debt to KfW, as follows:</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><u>&nbsp;</u></p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;
US$262 million provided under
various export credit agency-backed facilities, of which US$152 million was in
connection with our expansion and service improvement programs and US$110
million in connection with the US$149 million refinancing facility discussed
below; and</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&bull;&nbsp; US$89 million provided for the 15% downpayment portion
and credit facilities without guarantee/insurance cover from the export credit
agencies, of which US$30 million was in connection with the US$149 million refinancing
facility discussed in the following paragraphs.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">On January 25, 2002, PLDT signed two
loan agreements with KfW, which provided PLDT with a US$149 million facility to
refinance in part the repayment installments under its existing loans from KfW
due from January 2002 to December 2004.  The facility is composed of a
nine-year loan, inclusive of a three-year disbursement period and a two-year
grace period during which no principal is payable.  It partly enjoys the
guarantee of HERMES, the export credit agency of the Federal Republic of
Germany.  We had drawn US$140 million (Php7,885 million) under this facility as
at December 31, 2004.  PLDT waived further disbursements under this
refinancing facility effective September
 1, 2004.  Thus, the undrawn portion of
US$9 million was cancelled.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Of
the amounts outstanding under these KfW loans, US$83 million of our KfW loans
will mature in 2005, US$57 million in 2006, US$78 million in 2007, US$58
million in 2008, US$44 million in 2009 and US$31 million in 2010.  Principal
amortizations on these loans are generally payable in equal semi-annual
installments.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Finnish Export Credit plc, or Finnvera</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">As at December 31, 2004, US$162 million aggregate
principal amount of Smart&#146;s debts provided by various banks under export credit
agency-backed facilities in connection with Smart&#146;s Phases 1, 2, 3, 4, part of
5A and 5B GSM expansion programs are covered by guarantees from Finnvera, the
Finnish export credit agency, for 95% of political risk and 50% of commercial
risk.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Of
the amounts outstanding under these Finnvera guaranteed loans, US$95 million
will mature in 2005 and US$67 million will mature in 2006.  Principal
amortizations on these loans are generally payable in equal semi-annual
installments.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Nippon</i><i> Export and Investment Insurance of </i><i>Japan</i><i>,
or NEXI</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">On November 28, 2002, Smart signed a
US$100 million term loan facility supported by NEXI of which US$60 million was
drawn on November 28, 2003 and US$40 million on April 5, 2004.  This loan is
payable semi-annually over four years in eight equal installments starting May
28, 2004 with final repayment due in November 2007.  The outstanding balance as
at December 31, 2004 was US$75 million.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Japan
Bank for International Cooperation, or JBIC/Co-financing Banks</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As
at December 31, 2004, PLDT owed US$44 million aggregate principal amount
of debt to JBIC (formerly the Export-Import Bank of Japan) and its
co-financing banks under various facilities.  Of the amounts outstanding under
these loans, US$14 million will mature in 2005, US$13 million in 2006, US$10
million in 2007, US$4 million in 2008 and US$3 million in 2009.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Other
Export Credit Agency Supported Loans</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">PLDT
has also obtained loans extended and/or guaranteed by other export credit
agencies, including the Export-Import Bank of the United States, and the
respective export credit agencies of France, Italy, Israel, Sweden, Denmark, Canada,
 Australia, the United Kingdom and Singapore, in the aggregate outstanding
principal amount of US$96 million as at December 31, 2004.  Smart, likewise, obtained loans guaranteed by export credit agencies of Norway and Italy
amounting to US$8 million.  Of the amounts outstanding under these loans, US$40
million will mature in 2005, US$33 million in 2006, US$24 million in 2007, US$4
million in 2008, US$2 million in 2009 and US$1 million in 2010.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Fixed Rate Notes</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">PLDT has the following non-amortizing fixed rate notes
outstanding as at December 31, 2004 and 2003:</p>

<p align=right style='text-align:right;text-indent:.5in;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.88%;border-collapse:collapse;border-collapse:collapse !msorm'>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   colspan=2 valign=bottom style=' border:none;
 border-top:solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">Principal</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;border-top:
 solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">Interest</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-top:solid windowtext 1.5pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Maturity</b></p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 border-top:solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-top:solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Rate</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Date</b></p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">2004</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=6 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$300,000,000</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8.350%</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">March 6, 2017</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>US$299</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Php16,852</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$299</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php16,624</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$250,000,000</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11.375%</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">May 15, 2012</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>250</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>14,085</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">250</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13,897</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$183,913,000</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7.850%</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">March 6, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>184</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>10,362</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">200</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,117</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$175,000,000</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10.500%</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">April 15, 2009</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>175</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>9,841</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">175</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9,705</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$129,827,000</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9.250%</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">June 30, 2006</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>130</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>7,310</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">175</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9,717</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$110,557,000</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9.875%</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">August 1, 2005</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>110</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>6,229</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">138</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,683</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$  88,263,000</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10.625%</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">May 15, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>88</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4,973</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,559</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$  77,002,000</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:13.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10.625%</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">June 2, 2004</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">77</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,279</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-right:10.7pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-right:9.05pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>US$</b><b>1,236</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Php69,652</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$1,414</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php78,581</p>
 </td>
 </tr>
 <tr height=0>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 </tr>
</table></center></div>

<p style='margin-left:.25in;text-align:justify;text-indent:
- -.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">On
May 2, 2002, PLDT issued 10.625% Notes due 2007 in the aggregate principal
amount of US$100 million and 11.375% Notes due 2012 in the aggregate principal
amount of US$250 million.  The net proceeds from the issuance of the notes were
used to effect the repurchase of (1) US$63 million in principal amount of our
8.5% Notes due 2003 and US$117 million in principal amount of our 10.625% Notes
due 2004 validly tendered by holders in our tender offer and (2) US$10 million
in principal amount of our 10.625% Notes due 2004 and US$12 million in
principal amount of our 9.875% Notes due 2005 from the open market, and to
prepay or repay various loans in the aggregate amount of US$125 million, of
which US$53 million (JP&yen;6,260 million) pertained to the Japanese yen term loan
which matured on June 18, 2003 and US$52 million in connection with the US$150
million term loan which matured on December 22, 2003.  </p>

<p style='margin-left:.25in;text-align:justify;text-indent:
- -.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Term Loans</i></p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>US$283 Million Term Loan Facility, or Debt Exchange
Facility</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">On July 2, 2004, Smart acquired from Piltel&#146;s
creditors approximately US$289 million, or 69.4%, in the aggregate of Piltel&#146;s
total outstanding restructured debt at that time, in exchange for Smart debt
and a cash payment by Smart.  In particular, Smart paid an amount in cash of
US$1.5 million, or Php84 million, and issued new debt of US$283.2 million, or
Php15,854 million in July 2, 2004.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
breakdown of the total amount of Smart debt issued to participating Piltel creditors
is as follows:</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;
2007 Facility in the amount of
US$0.2 million payable in full in December 2007;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;
2008 Facility in the amount of
US$2.9 million payable in full in December 2008; and</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;
2014 Facility in the amount of
US$280.1 million payable in full in June 2014.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">As at July 2, 2004, the estimated
futures cash flows for the Smart newly issued debt amounted to Php19,507
million, as determined using undiscounted cash flows.  The difference between
the sum of future cash flows for newly issued debt of Php19,507 million and
cash settlement of Php84 million, and the Php22,211 million Piltel cancelled
debt was recognized as gain on debt restructuring in the 2004 consolidated
statement of income.  The total gain from the debt restructuring amounted to
Php2,620 million (Php15.44 per share) including the gain of Php241 million from
the cash settled debt of Piltel.  The difference between the future cash flows
of the newly issued debt of Php19,507 million and the value of new debt of
Php15,854 million was deferred and presented as part of &#147;Remaining excess of
debt forgiven over value of consideration given&#148; account in the consolidated
balance sheets in conformity with the accounting for troubled debt
restructuring.  Thereafter, interest incurred on the new debt is recorded as an
offset against &#147;Remaining excess of debt forgiven over value of consideration
given&#148;.  Total interest incurred related to the new debt for the year ended December 31, 2004
amounted to Php199 million.  As at December 31, 2004,
the balance of &#147;Remaining excess of debt forgiven over value of consideration
given&#148; account for this restructuring amounted to Php3,454 million, after
giving effect to the above interest expense.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Interest
for the above facilities is payable every quarter at a floating rate of three
months US$ LIBOR plus 1.00% for the 2007 and 2008 facilities, and a fixed rate
of 2.25% per annum for the 2014 facility.  Furthermore, a portion of the 2014
facility amounting to US$144 million has a variable yield option whereby the
creditors have an option to elect for an early repayment at a discount either
in December 2007 at 52.5% of the relevant debt amount or in December 2008 at
57.5% of the relevant debt amount.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>GSM Network Expansion Facilities</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0"><a
name="OLE_LINK7">On </a>February 11, 2005, Smart signed a US$100 million
five-year term loan facility supported by the Finnish Export Credit Ltd. as the
lender with ING Bank N.V. as facility agent to refinance its GSM Phase 5A
facility.  The full amount of the facility was drawn on March 1, 2005.  The loan will be payable over five years in ten equal payments starting September 1, 2005 at a floating rate of LIBOR plus 0.05% in respect of the six months
interest period.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On September 13, 2004,
Smart signed a US$104 million five-year term loan facility supported by Finnish
Export Credit Ltd. as the lender with ABN AMRO Bank, Banque National de
Paribas, Calyon, DBS Bank and Sumitomo Mitsui Banking Corporation as the Lead
Arrangers.  The full amount of the facility was drawn in November 22, 2004, of
which, US$104 million remained outstanding as at December 31, 2004.  The loan will
be payable over five years in ten equal payments starting May 2005 at a fixed
rate of 4.49% with final repayment in November 2009.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">On
June 8, 2001, Smart signed its GSM Phase 5A financing facility comprised of
US$195 million loans, of which US$30 million Nordic Investment Bank, or NIB,
US$15 million to Nederlandse Financierings-Maatschappij Voor
Ontwikkelingslanden N.V., or FMO, is owed to of the Netherlands and US$150
million to Finnvera.  Of the amounts owed to FMO and NIB, US$22 million
remained outstanding as at December 31, 2004, are payable over five to six
years, with final repayments due in March 2007 and June 2007.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>US$224
Million Term Loan Facilities</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
loan facilities for Phases 1 to 4 of the GSM network expansion, under which
US$61.3 million was outstanding as at December 31, 2004,
are repayable in ten equal semi-annual installments with final repayments due
in October 2005 and April 2006.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On
September 25, 2001, Smart obtain a US$5.9 million term loan facility from
Electro Banque S.A. at a floating rate of six months US$ LIBOR plus 2.6%
margin.  The loan was fully paid on November 8, 2004.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On October 26, 2001,
Smart obtained a US$10.6 million term loan facility from Credit Lyonnais S.A.,
of which, US$3.6 million is outstanding as at December 31, 2004.  This facility
is payable semi-annually at a floating rate of six months US$ LIBOR plus
0.50% margin.  Final repayment is due in May 2008.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On December 13, 2001,
Smart signed its GSM Phase 5B financing of US$100.0 million, of which, US$40.7
million is outstanding as at December 31,
 2004.  The loan is payable semi-annually
over five years at a floating rate of six months US$ LIBOR plus 1.3% margin.
Final repayment is due in September 2006.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">On
April 14, 2002, Smart obtained a US$7.2 million term loan facility from
Bayerische Hypo-und Vereinsbank Aktiengesellschaft under Euro50.0 million
Framework Agreement for the financing of individual export contracts dated
November 8 and 13, 2001.  The facility, which has an outstanding balance of
US$4.4 million as at December 31, 2004, is payable semi-annually over five
years at a floating rate of six months US$ LIBOR plus 0.425% margin.  Final
repayment is due in October 2007.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On November 28, 2002,
Smart signed a US$100.0 million term loan facility supported by NEXI, of which,
US$75.0 million is outstanding as at December 21, 2004.
This loan is payable semi-annually over four years at a floating rate of six
months US$ LIBOR plus 1.00% margin.  Final repayment is due in November 2007.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Local Exchange Transfer Loans</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">In
connection with the transfer to PLDT of Smart&#146;s local exchange business, PLDT
entered into loan agreements with Nederlandse Financierings-Maatschappij Voor
Ontwikkelingslanden N.V., or FMO, of the Netherlands, Exportkreditnamden, or
EKN, of Sweden and Export Credits Guarantee Department, or ECGD, of the United
Kingdom for loans in the principal amounts of US$135 million, US$36 million and
US$27 million, respectively.  Approximately US$51 million of the FMO loan and
US$25 million of the EKN and ECGD loans were outstanding as at December 31, 2004.
The FMO loan will mature on September 1,
 2007, and the EKN and ECGD loans on December 31, 2007.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>US$150
Million Term Loan</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">In connection with PLDT&#146;s fixed
line expansion projects, PLDT obtained a US$150 million term loan, which was
subsequently assigned to Norddeutsche Landesbank Girozentrale, Singapore
Branch.  This loan matured on December
 22, 2003 and the principal balance of
US$52 million then outstanding was partly refinanced by Tranche B of US$145
million multicurrency refinancing facility in the amount of JP&yen;3,191 million
and US$19 million.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>Multicurrency
Refinancing Facility</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">On
 September 4, 2002, PLDT signed a loan agreement with a syndicate of banks for
a US$145 million multicurrency term loan facility consisting of Japanese yen
and U.S. dollar commitments of JP&yen;10,914 million and US$53 million,
respectively.  This facility was split into two tranches.  Tranche A was drawn
on June 18, 2003 in the amount of JP&yen;7,723 million and US$34 million to
refinance a portion of the Japanese yen syndicated term loan which matured on
the same date.  Tranche B was drawn on December 22, 2003 in the amount of
JP&yen;3,191 million and US$19 million to refinance a portion of US$52 million
principal amount outstanding under the U.S. dollar term loan which matured on
the same date.  The outstanding balances of Tranches A and B of this
multicurrency term loan amounting to US$36 million and JP&yen;7,276 million originally
with final maturity in December 2006 were prepaid on December 20, 2004.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>US$12 Million Term Loan Facility</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">On May 29, 2003, PLDT obtained a US$12 million term
loan facility from DEG-Deutsche Investitions und Entwicklungsgesellschaft mbH.
As of December 31, 2004, this loan has an outstanding balance of US$6 million.
This loan will mature in June 2008 and is payable in semi-annual installments
starting June 15, 2004.  The US$4 million undrawn portion of the US$12 million
term loan facility was cancelled pursuant to a request by PLDT to DEG effective
 September 26, 2004.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Restructured Loans</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">On June 4, 2001, Piltel completed
the restructuring of approximately Php41 billion of indebtedness and other
claims owed to banks, trade creditors, bondholders and preferred shareholders,
representing 98% of its total liabilities as at that date.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As a
result of the restructuring:</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
50% of the financial debt of each
participating creditor was released in consideration for the allotment of
Piltel Series K Class I Convertible Preferred Stock.  One (1) Piltel Series K
Class I Convertible Preferred Stock was exchanged for every Php340 worth of
debt for which it is being exchanged (converted into Pesos at an exchange rate
of Php47.05 = US$1.00 for dollar-denominated debt and Php1.00 = JP&yen;2.39522 for
yen-denominated debt), which shares were immediately and mandatorily converted
into PLDT Convertible Preferred Stock.  One PLDT Series V, VI or VII
convertible preferred share was issued for every five (5) Piltel Series K Class
I Convertible Preferred Stock.</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Approximately half of the
remaining 50% of all participating creditors&#146; (except for bondholders and
preferred shareholders) financial debt became their participation in a Tranche
B Loan in the same currency as their previous financial debt and the other half
became their participation in a Tranche C Loan also in the same currency as
their previous financial debt.  In the case of bondholders and preferred
shareholders, the remaining 50% of their financial debt became a participation
in the Conversion Notes Facility and in a single Tranche Peso loan, or the Term
Notes Facility, respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Piltel&#146;s
residual long-term debt to third parties that was not exchanged in the debt
exchange offer conducted by Smart in 2004 consists of:</p>

<p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.3%;margin-left:.4pt;border-collapse:collapse'>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:.05pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Description</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=4 valign=top style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b>Restructured debts</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt' style="margin-top:0;margin-bottom:0">Philippine
 Pesos</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:18.4pt' style="margin-top:0;margin-bottom:0">10
 year Tranche B</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>Php241</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php2,166</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:18.4pt' style="margin-top:0;margin-bottom:0">15
 year Tranche C</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>241</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,166</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:18.4pt' style="margin-top:0;margin-bottom:0">15
 year Term Notes Facility</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">293</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>482</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">4,625</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt' style="margin-top:0;margin-bottom:0">U.S.
 Dollars</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:18.4pt' style="margin-top:0;margin-bottom:0">10
 year Tranche B</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>US$10</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>548</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">US$35</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,932</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:18.4pt' style="margin-top:0;margin-bottom:0">15
 year Tranche C</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>10</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>548</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">35</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,932</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:18.4pt' style="margin-top:0;margin-bottom:0">15
 year Conversion Notes Facility</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>99</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>5,606</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">122</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">6,768</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>US$</b><b>119</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>6,702</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">US$<a name="OLE_LINK4"></a>192</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">10,632</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt' style="margin-top:0;margin-bottom:0">Japanese
 Yen</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:18.4pt' style="margin-top:0;margin-bottom:0">10
 year Tranche B</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>JPY&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">JPY7,822</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">4,062</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:18.4pt' style="margin-top:0;margin-bottom:0">15
 year Tranche C</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">7,822</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">4,062</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>JPY</b><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">JPY15,644</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">8,124</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt' style="margin-top:0;margin-bottom:0">Total</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>7,184</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">23,381</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b>Unrestructured debt</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">U.S.
 Dollars</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Convertible
 bonds</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>US$1</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>52</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">US$1</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">52</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt' style="margin-top:0;margin-bottom:0">Total</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>7,236</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">23,433</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt' style="margin-top:0;margin-bottom:0">Less
 current portion</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>59</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">69</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>Php7,177</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php23,364</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
following is a summary of the key economic terms relating to the restructuring
of the financial debt taking the form of Tranche B Loan, Tranche C Loan, Term
Notes Facility and Conversion Notes Facility.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=1 cellspacing=0 cellpadding=0
 style='width:98.06%;margin-left:5.4pt;border-collapse:collapse;border:none'>

 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';margin-top:3.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:solid windowtext 1.0pt;
 border-left:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style=';margin-top:
 3.0pt;;margin-bottom:0in;margin-left:0in;margin-bottom:
 .0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Tranche B Loans</b></p>
 </td>
 <td   valign=bottom style=' border:solid windowtext 1.0pt;
 border-left:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style=';margin-top:
 3.0pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Tranche C Loans</b></p>
 </td>
 <td   valign=bottom style=' border:solid windowtext 1.0pt;
 border-left:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style=';margin-top:
 3.0pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Term Notes
 Facility</b></p>
 </td>
 <td   valign=bottom style=' border:solid windowtext 1.0pt;
 border-left:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style=';margin-top:
 3.0pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Conversion Notes
 Facility</b></p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:solid windowtext 1.0pt;
 border-top:none;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';margin-top:3.0pt' style="margin-top:0;margin-bottom:0">Final maturity</p>
 </td>
 <td   valign=top style=' border-top:none;border-left:
 none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style=';margin-top:
 3.0pt;;margin-bottom:0in;margin-left:0in;margin-bottom:
 .0001pt;text-align:center' style="margin-top:0;margin-bottom:0">10 years from June 4, 2001</p>
 </td>
 <td   valign=top style=' border-top:none;border-left:
 none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style=';margin-top:
 3.0pt;text-align:center' style="margin-top:0;margin-bottom:0">15 years from June 4, 2001</p>
 </td>
 <td   valign=top style=' border-top:none;border-left:
 none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style=';margin-top:
 3.0pt;text-align:center' style="margin-top:0;margin-bottom:0">15 years plus 10 days<br>
 from June 4, 2001</p>
 </td>
 <td   valign=top style=' border-top:none;border-left:
 none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style=';margin-top:
 3.0pt;text-align:center' style="margin-top:0;margin-bottom:0">15 years from June 4, 2001</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   rowspan=2 valign=top style=' border-top:none;
 border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='' style="margin-top:0;margin-bottom:0">Amortization</p>
 </td>
 <td   valign=top style=' border:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">Years 1 and 2  &#150;  0.00%</p>
 </td>
 <td   valign=top style=' border:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">Years 1 and 2  &#150;  0.00%</p>
 </td>
 <td   valign=top style=' border:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">Years 1 and 2  &#150;  0.00%</p>
 </td>
 <td   valign=top style=' border:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">Years 1 and 2  &#150;  0.00%</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">Years 3 to 9  &#150;  0.10%</p>
 </td>
 <td   valign=top style=' border:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">Years 3 and 4  &#150;  0.10%</p>
 </td>
 <td   valign=top style=' border:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">Years 3 to 14  &#150;  0.10%</p>
 </td>
 <td   valign=top style=' border:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">Years 3 and 4  &#150;  0.10%</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border-top:none;border-left:
 solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">Year 10  &#150;  99.30%</p>
 </td>
 <td   valign=top style=' border:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">Year 5  &#150;  2.00%</p>
 </td>
 <td   valign=top style=' border:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">Year 15  &#150;  98.80%</p>
 </td>
 <td   valign=top style=' border:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">Year 5  &#150;  1.05%</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border-top:none;border-left:
 solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">Years 6 to 14  &#150;  10.00%</p>
 </td>
 <td   valign=top style=' border:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">Years 6 to 9  &#150;  5.05%</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border-top:none;border-left:
 solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">Year 15  &#150;  7.80%</p>
 </td>
 <td   valign=top style=' border:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">Year 10  &#150;  54.65%</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border-top:none;border-left:
 solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">Years 11 to 14  &#150;  5.00%</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:solid windowtext 1.0pt;
 border-top:none;padding:0in 5.4pt 0in 5.4pt'>
 <p style='' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border-top:none;border-left:
 none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border-top:none;border-left:
 none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border-top:none;border-left:
 none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:none;border-left:
 none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';' style="margin-top:0;margin-bottom:0">Year 15  &#150;  3.90%</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:solid windowtext 1.0pt;
 border-top:none;padding:0in 5.4pt 0in 5.4pt'>
 <p style='' style="margin-top:0;margin-bottom:0">Interest rate</p>
 <p style='' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' border-top:none;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';;
 text-align:justify' style="margin-top:0;margin-bottom:0"><b>Peso facility</b> &#150; Philippines 91-day treasury bill rate, or T-Bill Rate, or the
 average of the 91-day T-Bill Rate and the 90-day Philippine inter-bank
 offered rate, or PHIBOR, if 90-day PHIBOR is different from the T-Bill Rate
 by more than 2.50%, plus 1.00% p.a.</p>
 <p style=';;
 text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 <p style=';;
 text-align:justify' style="margin-top:0;margin-bottom:0"><b>U.S. dollar facilities</b> &#150; London interbank rate for U.S. dollar deposits, or LIBOR,
 for three-month U.S. dollar deposits plus 1.00% p.a.</p>
 <p style=';;
 text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 <p style=';;
 text-align:justify' style="margin-top:0;margin-bottom:0"><b>Yen facility</b> &#150; LIBOR interbank rate for Yen deposits for
 three-month deposits plus 1.00% p.a.</p>
 </td>
 <td   valign=top style=' border-top:none;border-left:
 none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';;
 text-align:justify' style="margin-top:0;margin-bottom:0">181-day T-Bill Rate or the
 average of the 181-day T-Bill Rate and the 6-months PHIBOR, if 6-months
 PHIBOR is different from the T-Bill Rate by more than 2.50%, plus 1.00% p.a.</p>
 </td>
 <td   valign=top style=' border-top:none;border-left:
 none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';;
 text-align:justify' style="margin-top:0;margin-bottom:0">LIBOR for three-month
 deposits plus 1.00% p.a.</p>
 <p style=';text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:solid windowtext 1.0pt;
 border-top:none;padding:0in 5.4pt 0in 5.4pt'>
 <p style='' style="margin-top:0;margin-bottom:0">Interest payment dates</p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:none;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style=';text-align:
 center' style="margin-top:0;margin-bottom:0">Quarterly in arrears</p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:none;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style=';text-align:
 center' style="margin-top:0;margin-bottom:0">Semi-annually</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Under
the terms of Piltel&#146;s debt restructuring plan, PLDT issued a Letter of Support,
or LOS, for the benefit of Piltel and its creditors under which PLDT has agreed
to cover any funding shortfalls of Piltel up to a maximum amount of US$150
million less all amounts paid or committed to be paid to or on behalf of Piltel
or any of its subsidiaries or affiliates on or after March 23, 2000.  Under the
LOS, PLDT is required to provide funding to Piltel in the event that the cash
flow from Piltel&#146;s operations falls short of the amount required by it to
discharge in full its obligations to any creditor of Piltel and all its
operating and financing subsidiaries and affiliates.  PLDT is subject to
contractual restrictions limiting the amount of financial support it can
provide to Piltel up to US$150 million.  As at December 31, 2004 and 2003, the
remaining undrawn balance available under the PLDT LOS was US$50 million,
approximately Php2,831 million (2004) and Php2,793 million (2003) due to prior
investments made from March 23, 2000 to December 31, 2004 aggregating to US$100
million through PLDT&#146;s subscription to Series J Class I preferred shares of
Piltel.  There was no drawdown under the LOS in 2004 and 2003.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Piltel&#146;s
restructured obligations are secured by substantially all present and future
assets of Piltel under the mortgage trust indenture, or MTI, dated June 4, 2001 between
Piltel and Chase Manhattan Bank as security agent for the creditors, which
established the security arrangements relating to the restructured debts.  The
participating creditors (other than the participating holders of the Peso Term
Note Facility) will share equally in first ranking security, while
non-participating creditors and the participating holders of the Peso Term Note
Facility will share equally in second ranking security created under the MTI.
Such mortgage was approved by at least two-thirds of Piltel&#146;s stockholders at
its annual meeting on April 18, 2001 and the NTC on May 18, 2001.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Satellite Acquisition Loans</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Mabuhay
Satellite has an existing Credit Agreement with the Export-Import Bank of the United States
to finance a portion of the cost of purchasing the Agila II Satellite.  In
2003, Export-Import Bank of the United
 States approved, in principle, the
re-profiling of Mabuhay Satellite&#146;s US$42 million debt with them by extending
the maturity of the loan by 1 and &#189; years to July 15, 2007 and reducing the
interest rate by 1%, to 5.6% from 6.6%.  The revised repayment terms have been
approved by the majority of the local creditor banks.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Mabuhay
Satellite also has an existing Omnibus Agreement with a syndicate of local
banks, or the Banks, which includes issuance of irrevocable standby Letters of
Credit with an aggregate stated value not exceeding US$31 million (Php1,763
million) in favor of Export-Import Bank of the United States, as security under
the Credit Agreement and a term loan to Mabuhay Satellite in the aggregate
amount of US$41 million (Php2,301 million), which will mature on various dates
from 2005 to 2007. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Mabuhay
Satellite has constituted in favor of the Banks: (a) a first mortgage on its
leasehold rights under a lease agreement entered into with the Subic Bay
Metropolitan Authority and the components of the satellite system; (b) an
assignment of its rights under its purchase contract for the satellite system;
(c) an assignment of its rights under the transponder lease contracts to be
entered into with its shareholders and other parties and the revenues
therefrom; and (d) an assignment of the applicable proceeds of insurance to be
taken on the satellite system.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i><u>Japanese Yen Debt:</u></i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>JP&yen;19,807
Million Term Loan</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">In
December 1997, in connection with a refinancing of its maturing debt, PLDT
obtained a Japanese yen term loan from a syndicate of foreign banks.  This loan
matured on June 18, 2003 and the principal balance of JP&yen;12,359 million then
outstanding was partly refinanced by Tranche A of US$145 million multicurrency
refinancing facility in the amount of JP&yen;7,723 million and US$34 million.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>JBIC JP&yen;9,760 Million Overseas </i><i>Investment</i><i>
Term Loan</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On July 26, 2002, PLDT
signed a loan agreement with JBIC for a credit facility of JP&yen;9,760 million
under JBIC&#146;s OIL program.  The loan, which was drawn on July 31, 2002, is
being amortized semi-annually beginning March 21, 2005
and will mature on March 21, 2008.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>NEXI Supported JP&yen;5,615 Million</i> <i>Syndicated Term Loan Facility</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On
June 11, 2003, PLDT signed a JP&yen;5,615 million syndicated term loan facility
supported by NEXI, of which JP&yen;2,520 million was drawn and JP&yen;2,205 million was
outstanding as at December 31, 2004.  The undrawn balance of JP&yen;3,095 million
was cancelled at the end of the Availability Period on December 3, 2004.
This loan is being amortized semi-annually beginning December 2004 and will
mature in June 2008.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i><u>Philippine Peso Debt:</u></i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Php2,</i><i>770</i><i> Million Peso Fixed Rate Corporate Notes</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">In
connection with PLDT&#146;s service improvement and expansion programs, PLDT has
entered into two loan agreements, pursuant to each of which PLDT issued fixed
rate corporate notes in three tranches.  Interest on each tranche is payable
semi-annually.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Under
the first loan agreement, PLDT borrowed an aggregate amount of Php1,500
million, of which Php230 million matured on November 11, 2002, Php500 million
matured on November 9, 2004 and Php770 million will mature on November 9, 2006.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Under
the second loan agreement, PLDT borrowed an aggregate amount of Php1,270
million, of which <br>
Php360 million matured on June 9, 2003, Php100 million will mature on June 9, 2005 and
Php810 million on June 9, 2010.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>JBIC 4 Program of the Development Bank of the </i><i>Philippines</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">In connection with the Asia
Pacific Cable Network 2 project, PLDT entered into a loan agreement on
September 28, 2000 with Citibank, N.A., as facility agent, and a syndicate of
banks in the aggregate principal amount of Php1,700 million, of which about
Php680 million was outstanding as at December 31, 2004.  The loan, which is
funded under the JBIC Facility for Private Sector Development of the
Development Bank of the Philippines, will mature on October 26, 2005
and since April 2002 is payable in quarterly installments as set forth below:</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:80.5%;margin-left:40.5pt;border-collapse:collapse'>
 <tr>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>Quarterly Payment Number</u></b></p>
 </td>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=center style=';text-align:
 center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Percentage
 of Principal Payable on <br>
 <u>Each Quarterly Payment Date</u></b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';margin-right:
 40.5pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 4.5pt 0in 4.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Payments 1&#150;7 </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';margin-right:
 81.0pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">3.500%</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 4.5pt 0in 4.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Payments 8&#150;11</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';margin-right:
 81.0pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">8.875%</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 4.5pt 0in 4.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Payments 12&#150;15</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 4.5pt 0in 4.5pt'>
 <p align=right style=';margin-right:
 81.0pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">10.000%</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Secured Term Loans</i></p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Php150 Million </i><i>Term Loan Facility</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">On March 4, 2002, ePLDT entered into a three-year loan facility with
Philippine Bank of Communications amounting to Php150 million.  The loan is
payable in seven quarterly installments, with a grace period of one year,
beginning year 2003.  The loan facility was fully drawn on December 31, 2002.  The quarterly principal payments of Php15 million
started in June 2003 with a balloon payment of Php45 million in March 2005.
Interest on this loan is equivalent to 91-day T-bill rate plus 4% per annum
payable quarterly in arrears.  The loan is secured by ePLDT&#146;s deed of
assignment of receivables of a subsidiary from a foreign customer and an
investment in an associate with an original cost of Php629 million.  As at December 31, 2004,
the investment in this associate has been fully provided for as disclosed in <i>Note
8 &#150; Investments</i>.  As at December 31,
 2004, the outstanding balance of this
loan amounted to Php45 million which was prepaid in full in March 2005.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Php100
Million Term Loan Facility</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">On
 March 15, 2004, ePLDT entered into another three-year term loan facility with
Asia United Bank amounting to Php100 million for the payment of its outstanding
short-term bank loan facility and for other working capital requirements.  The
loan facility was fully drawn as at December 31, 2004.  The loan is to be
repaid in nine equal quarterly installments starting March 2005 with final
repayment in March 2007.  Interest on the loan is equivalent to 90-day PHIBOR
plus 3% per annum payable quarterly in arrears.  The loan is secured by a
Mortgage Trust Indenture Agreement, or MTIA, on a parcel of land with a
carrying value of Php279 million as at December 31, 2004.  As at December 31, 2004, the outstanding balance of this loan amounted to Php100 million, of
which Php44 million will mature in 2005.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Php149 Million Term Loan Facility</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">As at December 31, 2004, Vocativ, Inc., a wholly-owned
call center subsidiary of ePLDT, had an outstanding five-year term loan
facility of Php149 million with Asia United Bank for the payment of its
additional capital expenditures and working capital requirements.  The loan is
to be repaid in 14 equal quarterly installments starting April 2006 with final
repayment in July 2009.  Interest on the loan is equivalent to 90-day PHIBOR
plus 3% per annum payable quarterly in arrears.  The loan is secured by a
Mortgage Participation Certificate against the MTIA between ePLDT and Asia
United Bank Corporation &#150; Trust and Investments Group dated March 15, 2004 on a
parcel of land, which excludes the buildings and improvements.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i>Unsecured Term Loans</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Php1,000 Million Term Loan Facility</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On June 14, 2001, Smart
signed its GSM Phase 5A financing of Php1,000 million term loan.  The
outstanding balance under this facility of Php467 million was prepaid on June 28, 2004.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='line-height:normal' style="margin-top:0;margin-bottom:0">Debt
Covenants</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Our debt instruments contain
restrictive covenants, including covenants that could prohibit us from paying
dividends on common stock under certain circumstances, and require us to comply
with specified financial ratios and other financial tests, calculated in
conformity with accounting principles generally accepted in the Philippines,
at relevant measurement dates, principally at the end of each quarterly
period.  We have complied with all of our maintenance financial ratios as
required under our loan covenants and other debt instruments.  However, if
negative factors adversely affect our financial ratios, we may be unable to
maintain compliance with these ratios and covenants or be unable to incur new
debt.  Under some of our loan agreements, certain of our financial ratios have
become more restrictive in 2004 and will continue to become more restrictive in
increments thereafter, which will make it more difficult for PLDT to maintain
compliance with such ratios in the future.  Inability to comply with our
financial ratios and covenants or raise new financing could result in a
declaration of default and acceleration of some or all of our indebtedness.
The terms of some of our debt instruments have no minimum amount for
cross-default.  In addition, we are required to comply with certain financial
ratios for the incurrence of capital expenditures in excess of US$10 million
and incurrence of indebtedness.   </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
particular, under loan agreements with JBIC, we are required to obtain prior
written consent of JBIC for capital expenditures in excess of US$10 million,
unless, among other things, our current ratio, calculated on a non-consolidated
basis and after taking into account such expenditures, will not be less than
1.20:1.  As at March 31, 2005, our current ratio was 1.29:1, primarily due to the
large current portion of our long-term debt as at that date.  We currently
believe that our current ratio is unlikely to be less than 1.20:1 due to
smaller current portion of our long-term debt going forward.  As a result, we
believe that our financial ratios currently do not materially limit our ability
to incur our budgeted capital expenditures or to obtain additional financings.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
principal factors that can negatively affect our ability to comply with these
financial ratios and other financial tests are depreciation of the Philippine
peso relative to the U.S. dollar, poor operating performance of PLDT and its
consolidated subsidiaries, impairment or similar charges in respect of
investments or other long-lived assets that may be recognized by PLDT and its
consolidated subsidiaries and increases in our interest expenses.  Interest
expense may increase as a result of various factors including issuance of new
debt, the refinancing of lower cost indebtedness by higher cost indebtedness,
depreciation of the Philippine peso, the lowering of PLDT&#146;s credit ratings or
the credit ratings of the Philippines, increase in reference interest rates,
and general market conditions.  Since approximately 98% of our total
consolidated debts were denominated in foreign currencies, principally in U.S.
dollars, many of these financial ratios and other tests are negatively affected
by any weakening of the peso, which declined by approximately 3% against the
U.S. dollar to an average of Php56.044 to US$1.00 in 2004 from an average of
Php54.215 to US$1.00 in 2003.  The peso depreciated from Php26.376 to US$1.00
on June 30, 1997, to Php56.341 to US$1.00 as at December 31, 2004.  Moreover, the peso has been subjected to significant fluctuations.  For example, during
2004 and 2003, the peso recovered to a high of Php52.021 to US$1.00 on May 8, 2003 and depreciated to a low of Php56.443 to US$1.00 on October 14, 2004.  </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">PLDT&#146;s
ability to maintain compliance with financial covenant requirements measured on
a non-consolidated basis is principally affected by the performance of its
fixed line business, which is predominantly conducted by PLDT.  PLDT cannot be
assured of the benefit of net revenues and cash flows generated by Smart and
PLDT&#146;s other investees in assisting in complying with non-consolidated
covenants or covenants that are calculated without giving effect to the results
of PLDT&#146;s investees.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">PLDT&#146;s
debt instruments contain a number of other negative covenants that, subject to
certain exceptions and qualifications, restrict PLDT&#146;s ability to take certain
actions without lenders&#146; approval, including: (a) incurring additional
indebtedness; (b) prepaying other debt; (c) making investments; (d) extending
loans; (e) extending guarantees or assuming the obligations of other persons; (f)
paying dividends or other distributions or redeeming, repurchasing or otherwise
acquiring shares of PLDT&#146;s capital stock; (g) disposing of all or substantially
all of its assets or of assets in excess of specified thresholds of its
tangible net worth; (h) entering into management contracts providing for the
management of its business or operations by a third party; (i) creating any
lien or security interest; (j) permitting set-off against amounts owed to PLDT;
(k) merging or consolidating with any other company; (l) entering into
transactions with stockholders and affiliates; and (m) entering into sale and
leaseback transactions. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Further,
certain of PLDT&#146;s debt instruments contain provisions wherein PLDT may be
required to repurchase or prepay certain indebtedness in case of change in
control of PLDT or if the ownership of our shares of common stock held by NTT
Communications falls below a certain threshold.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Moreover,
certain of PLDT&#146;s debt instruments restrict PLDT from declaring or distributing
dividends to common stockholders.  In particular, under the terms of PLDT&#146;s JPY5,615 million syndicated term loan facility,
PLDT is restricted from distributing dividends to common stockholders unless
(i) no default has occurred which is continuing, and (ii) its debt to free cash
flow ratio, after giving effect to the distribution of such dividends and,
under certain circumstances, other adjustments to PLDT&#146;s closing cash balance,
would be less than 4.0:1.  Under other loan agreements, PLDT may not declare or
pay dividends on any of its capital stock without the prior written consent of
the lenders (i) if PLDT is in default in the payment of any amounts due and
payable under such loan agreement or after the occurrence and during the
continuance of any other event of default or potential event of default under
such agreements, (ii) if after giving effect to such action the current ratio
would be less than 1.2:1 or (iii) in an amount greater than PLDT&#146;s net income
after taxes during the fiscal year to which such payment or distribution
relates.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">In case of a change in control of PLDT, PLDT may be
required to repurchase or prepay certain indebtedness.  Under the terms of the
10.625% Notes due 2007 and 11.375% Notes due 2012, we are required to offer to
purchase all outstanding notes due 2007 and notes due 2012 for cash at a price
of 101% of their principal amounts plus accrued interest in the event that (1)
the aggregate of NTT Communications&#146; and First Pacific&#146;s direct and indirect
voting interest in PLDT's outstanding capital stock having voting rights falls
below 35% of such capital stock, (2) any person or, in certain instances, group
of persons, which is not controlled directly or indirectly by First Pacific or
NTT Communications acquires a direct or indirect voting interest in PLDT&#146;s
outstanding capital stock having voting rights which equals or exceeds 35% of
such capital stock and (3) if a rating agency at such time maintains a rating
on either series of notes, the rating agency downgrades its credit rating on the
series within 90 days (or more, in certain circumstances) following notice of
the occurrence of the events specified in (1) and (2) above.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Under
the terms of our JP&yen;9,760 million loan from JBIC, in the event of any proposed
sale or transfer of PLDT&#146;s stock that would result in NTT Communications
holding less than 14.95% of PLDT&#146;s voting stock, we will be required to prepay,
immediately upon effectiveness of such sale or transfer, all principal
outstanding under the loan, together with accrued interest.  However,
prepayment will not be required if, following such sale or transfer, (1) NTT
Communications continues to have prior approval rights with respect to all
matters as to which NTT Communications has approval rights under the stock
purchase agreement pursuant to which it acquired its shares in PLDT, or (2)
JBIC, in its sole discretion, determines that NTT Communications&#146; participation
in the expansion of Smart&#146;s GSM network capacity to extend PLDT&#146;s cellular
business in Smart would not be reduced below its level of participation as at
the date of the loan agreement.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Under
the terms of PLDT&#146;s JP&yen;5,615 million syndicated term loan facility, if any
lender so requests in writing, PLDT shall prepay in full such lender&#146;s
participation in the loan within 45 days from notification of the change in
control and no later than the date on which PLDT is required to repurchase its
10.625% Notes due 2007 and 11.375% Notes due 2012, or Bonds, from bondholders
accepting the change in control offer.  A change in control is deemed to occur
when (1) the aggregate of NTT Communications&#146; and First Pacific&#146;s direct and
indirect voting interest in PLDT&#146;s outstanding capital stock having voting
rights falls below 35% of such capital stock, (2) any person or, in certain
instances, group of persons, which is not controlled directly or indirectly by
First Pacific or NTT Communications acquires a direct or indirect voting
interest in PLDT&#146;s outstanding capital stock having voting rights which equals
or exceeds 35% of such capital stock and (3) if a rating agency at such time
maintains a rating on the Bonds, the rating agency downgrades its credit rating
on the Bonds within 90 days (or more, in certain circumstances) following
notice of the occurrence of the events specified in (1) and (2) above.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">PLDT&#146;s
debt instruments also contain customary and other default provisions that
permit the lender to accelerate amounts due or terminate their commitments to
extend additional funds under the debt instruments. These default provisions
include: (a) cross-defaults and cross-accelerations that permit a lender to
declare a default if PLDT is in default under another debt instrument; in some
cases, the cross-default provision is triggered upon a payment or other default
permitting the acceleration of PLDT&#146;s debt, whether or not the defaulted debt
is accelerated.  In other cases, the cross-default provision requires the
defaulted loan to be accelerated.  In some debt instruments, the cross-default
provision will be triggered only if the principal amount of the defaulted
indebtedness exceeds a threshold amount specified in these debt instruments;
(b) failure by PLDT to meet certain financial ratio covenants referred to
above; (c) the occurrence of any material adverse change in circumstances that
a lender reasonably believes materially impairs PLDT&#146;s ability to perform its
obligations under its debt instrument with the lender; (d) the revocation,
termination or amendment of any of the permits or franchises of PLDT in any
manner unacceptable to the lender; (e) the abandonment, termination or
amendment of the project financed by a loan in a manner unacceptable to the
lender; (f) the nationalization or sustained discontinuance of all or a
substantial portion of PLDT&#146;s business; and (g) other typical events of
default, including the commencement of bankruptcy, insolvency, liquidation or
winding up proceedings by PLDT.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Smart&#146;s debt instruments contain
certain restrictive covenants, including covenants that prohibit Smart from
paying dividends, redeeming preferred stock, making distributions to PLDT or
otherwise providing funds to PLDT or any affiliate without the consent of its
lenders under its Phase 1, 2 and 3 facilities.  Also, Smart&#146;s debt instruments
contain certain restrictive covenants that require Smart to comply with
specified financial ratios and other financial tests at semi-annual measurement
dates.   The financial tests under Smart&#146;s loan agreements include compliance
with a debt to equity ratio of not more than 1.50:1 and a debt service coverage
ratio of not less than 1.50:1.  Smart has maintained compliance with all of its
financial covenants.  The agreements also contain customary and other default
provisions that permit the lender to accelerate amounts due under the loans or
terminate their commitments to extend additional funds under the loans.  These
default provisions include: (a) cross-defaults and cross-accelerations that
permit a lender to declare a default if Smart is in default under another loan
agreement.  These cross-default provisions are triggered upon a payment or
other default permitting the acceleration of Smart debt, whether or not the
defaulted debt is accelerated; (b) failure by Smart to comply with certain
financial ratio covenants; (c) any reduction in PLDT&#146;s ownership of Smart&#146;s
shares below 51%; (d) any reduction in First Pacific&#146;s and Metro Pacific
Corporation&#146;s collective direct and/or indirect ownership of PLDT&#146;s common
stock below 17.5% of the total common stock outstanding; and (e) the occurrence
of any material adverse change in circumstances that the lender reasonably
believes materially impairs Smart&#146;s ability to perform its obligations under
its loan agreements.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As
at December 31, 2004, Piltel was not in compliance with the terms of
convertible bonds with principal amount of US$0.7 million (approximately US$0.9
million redemption price at the option of the holders).  Piltel may not be able
to restructure or otherwise pay the claims of its unrestructured debt.
However, default on and acceleration of Piltel&#146;s unrestructured indebtedness
does not create a cross-default under Piltel&#146;s restructured indebtedness or any
indebtedness of PLDT or Smart.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
Credit and Omnibus Agreements of Mabuhay Satellite imposes several negative
covenants.  In particular, these covenants, among others, restrict material
changes in Mabuhay Satellite&#146;s nature of business and ownership structure, any
lien upon or with respect to any of its assets or to any right to receive
income, acquisition of capital stock, declaration and payment of dividends,
merger, consolidation and sale with another entity and incurring or
guaranteeing additional long-term debt beyond prescribed amounts.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">ePLDT&#146;s
loan agreement imposes negative covenants which, among other things, restrict
ePLDT in regard to payment of cash dividends or any other income or any capital
distribution to PLDT, voluntary suspension of its entire business operations
for a period of 60 consecutive days, dissolution of its legal existence, and
creation of any encumbrances on the shares pledged.  One of ePLDT&#146;s loan
agreements also requires ePLDT to comply with specified financial ratios and
other financial tests at quarterly measurement dates.  The agreement also
contains customary and other default provisions that permit the lender to
accelerate amounts due under the loan or terminate their commitments to extend
additional funds under the loan.  As at December 31, 2004,
ePLDT has complied with all of its financial covenants.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b>Obligations Under Capital
Lease</b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The future minimum payments for
capitalized leases are as follows as at December 31, 2004:</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.52%;margin-left:.4pt;border-collapse:collapse;border-collapse:
 collapse !msorm'>

 <tr style='page-break-inside:avoid;height:3.95pt' style='page-break-inside:
 avoid !msorm;height:3.95pt !msorm'>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:3.95pt'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Year</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:3.95pt'>
 <p style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">2005</p>
 </td>
 <td   style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:36.3pt;text-align:right' style="margin-top:0;margin-bottom:0">673</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 <td   style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:36.3pt;text-align:right' style="margin-top:0;margin-bottom:0">379</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">2007</p>
 </td>
 <td   style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:36.3pt;text-align:right' style="margin-top:0;margin-bottom:0">258</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">2008</p>
 </td>
 <td   style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:36.3pt;text-align:right' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">2009</p>
 </td>
 <td   style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:36.3pt;text-align:right' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">2010
 and onwards</p>
 </td>
 <td   style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:36.3pt;text-align:right' style="margin-top:0;margin-bottom:0">443</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Total minimum lease payments</p>
 </td>
 <td   style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:36.3pt;text-align:right' style="margin-top:0;margin-bottom:0">1,766</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Less amount representing
 interest</p>
 </td>
 <td   style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:36.3pt;text-align:right' style="margin-top:0;margin-bottom:0">740</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Present value of net minimum
 lease payments</p>
 </td>
 <td   style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:36.3pt;text-align:right' style="margin-top:0;margin-bottom:0">1,026</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Less capital lease maturing
 within one year</p>
 </td>
 <td   style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:36.3pt;text-align:right' style="margin-top:0;margin-bottom:0">425</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Long-term portion of
 obligations under capital lease</p>
 </td>
 <td   style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:36.3pt;text-align:right' style="margin-top:0;margin-bottom:0"> 601</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i>Municipal Telephone Projects</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">In 1993, PLDT entered into two
lease agreements with the Philippine Department of Transportation and
Communications, or DOTC, covering telecommunications facilities in Bohol and
Batangas established under the Municipal Telephone Act.  Under these agreements,
PLDT was granted the exclusive right to perform telecommunications management
services, to expand services, and to promote the use of the DOTC-contracted
facilities in certain covered areas for a period of 15 years.  Title to the
properties shall be transferred to PLDT upon expiration of the lease term.  As
at December 31, 2004, PLDT&#146;s aggregate remaining obligation under these
agreements was approximately Php858 million.  In case of cancellation, PLDT is
liable to pay Php100 million under each of the two contracts as liquidated
damages.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">On
June 1, 2004, PLDT served the DOTC a notice of termination of the lease
agreement in respect of the telecommunications system in Bohol which state of
deterioration, obsolescence and disrepair have made it impossible for PLDT to
continue managing, operating, and maintaining the system.  Since 2002, PLDT has
been advising the DOTC of the need to review the viability of the system as it
has infused more than Php200 million for upgrades and maintenance to keep the system
operable.  Further, the enactment of Public Telecommunications Policy Act, or
R.A. No. 7925, which negated the DOTC&#146;s warranty to grant PLDT the exclusive
right to provide telecommunication services in the areas stipulated, prevented
PLDT from achieving the originally projected profitability thereby rendering it
impossible for PLDT to continue fulfilling its obligation under the lease
agreement.  Although several discussions have been held since then to seek a
mutually acceptable agreement, no amenable arrangement has been reached.  On June 30, 2004, the
DOTC advised PLDT that the request for termination of the lease agreement in Bohol has been
referred to the Department of Justice, or DOJ, as government agencies are
required to refer all interpretation of contracts and agreements to the DOJ
secretary as attorney-general of the national government.  As at the date of
this report, negotiations are on-going in efforts to reach a mutually
beneficial arrangement for both parties.  As at December 31, 2004, the net book
value of the telecommunications system in Bohol, including PLDT&#146;s additional
capital expenditure relating to the telecommunications system, and
corresponding capital lease obligation amounted to Php42 million and Php735
million, respectively.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i>Other Long-term Capital
Lease Obligations</i> </p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The PLDT Group has various
long-term lease contracts for a period of three years covering various office
equipment.  In particular, Smart and Piltel have capital lease obligations
aggregating Php906 million as at December 31, 2004
in respect of office equipment and facilities.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Under
the terms of certain loan agreements and other debt instruments, PLDT may not
create, incur, assume or permit or suffer to exist any mortgage, pledge, lien
or other encumbrance or security interest over the whole or any part of its
assets or revenues or suffer to exist any obligation as lessee for the rental
or hire of real or personal property in connection with any sale and leaseback
transaction.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Notes Payable</b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">This
account consists of Philippine peso and U.S. dollar-denominated short-term bank
loans and trust receipts at weighted average interest rates, or WAIR, of 11.75%
and 10.030% at December 31, 2004 and 2003, respectively, for Philippine peso
borrowings, and 2.78% and 2.606% at December 31, 2004 and 2003, respectively,
for U.S. dollar borrowings.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">On
April 28, 2003 and May 14,
 2003, PLDT issued, at a discount,
Php1,600 million and Php400 million One-Year Peso Notes, respectively, under
its Php2 billion Peso Notes program registered with the Philippine SEC.  Net
proceeds of the issue totaled Php1,803 million. The Php1,600 million One-Year
Peso Note matured and were paid on April 22, 2004
and the Php400 million One-Year Peso Note matured and were paid on May 11, 2004.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Parlance Systems, Inc., a
wholly-owned call center subsidiary of ePLDT, has availed of a local bank&#146;s
Export Packing and Credit Loan facility amounting to US$950,000 as at December 31, 2004.
The said facility can be availed by an export Letter of Credit with an 80% loan
value.  It has a 90-day term from the date it was granted by the bank and is
supported by a Deed of Assignment of Receivables.  Interest is based on the
prevailing bank rate to be collected in arrears on a monthly basis.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div style='border:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 0in 0in'>

<p style='line-height:50%;page-break-after:avoid;border:none;
padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='page-break-after:avoid;punctuation-wrap:hanging;
text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0"><b>13.    Deferred Credits and Other Noncurrent
Liabilities</b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">This account consists of:</p>

<p align=right style='text-align:right;text-indent:.5in;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.68%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:7.75pt;
 margin-bottom:0in;margin-left:.05pt;margin-bottom:.0001pt;text-align:right;
 text-indent:-.05pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Accrual of capital expenditures under
 long-term financing </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>3,970</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,130</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Advance payment under a receivables
 purchase facility (Note 5)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,644</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,058</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Liabilities on asset retirement
 obligations</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>638</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">395</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>908</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">222</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>7,160</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,805</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div style='border:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 0in 0in'>

<p style='line-height:50%;border:none;padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0"><b>14.    Preferred Stock Subject
to Mandatory Redemption</b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As
at December 31, 2004, PLDT had issued 3 million shares of Series V Convertible
Preferred Stock, 5 million shares of Series VI Convertible Preferred Stock and
4 million shares of Series VII Convertible Preferred Stock in exchange for a
total of 58 million shares of Series K Class I Convertible Preferred Stock of
Piltel, pursuant to the debt restructuring plan of Piltel adopted in June
2001.  Shares of Series V, VI and VII Convertible Preferred Stock are entitled
to receive annual dividends of Php18.70 per share, US$0.397 per share and
JP&yen;40.7189 per share, respectively.  Each share of Series V, VI and VII PLDT
Convertible Preferred Stock is convertible at any time at the option of the
holder into one share of PLDT&#146;s common stock.  On the date immediately
following the seventh anniversary of the issue date of the Series V and Series
VI Convertible Preferred Stock and on the eighth anniversary of the issue date
of the Series VII Convertible Preferred Stock, the remaining outstanding shares
under these series will be mandatorily converted into shares of PLDT&#146;s common stock.
For 30 days thereafter, the holders of these mandatorily converted shares of
common stock have the option to sell such shares of common stock back to PLDT
for Php1,700 per share, US$36.132 per share and JPY4,071.89
per share for Series V, VI and VII PLDT Convertible Preferred Stock,
respectively.  Due to the foreign currency component of the call option
embedded in the Series VI and VII Convertible Preferred Stock, such call
options were bifurcated and accounted for separately in conformity with SFAS
133, as amended, see <i>Note 23</i> &#150; <i>Financial Assets and Liabilities</i>.
The aggregate fair value of the issued Series V, VI and VII Convertible
Preferred Stock as at date of issuance &#150; net of the bifurcated option values &#150;
is shown under the &#147;Preferred Stock Subject to Mandatory Redemption&#148; account in
the consolidated balance sheets.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">As at June 4, 2001, the aggregate fair
value of the issued Series V, VI and VII Convertible Preferred Stock (inclusive
of the option values) amounted to Php10,165 million, as determined using an
independent party&#146;s valuation model.  The remaining difference between this
aggregate fair value amount and the Php20,080 million Piltel restructured debt
was deferred and presented as part of &#147;Remaining excess of debt forgiven over
value of consideration given&#148; account in the consolidated balance sheets in
conformity with the accounting for troubled debt restructuring, such that no
gain was recorded on the restructuring.  Thereafter, interest incurred on the
remaining restructured debt is recorded as an offset against remaining excess
of debt forgiven over the value of consideration given.  Total interest
incurred related to the restructured debt for the years ended December 31, 2004,
2003 and 2002 amounted to Php473 million, Php688 million and Php758 million,
respectively.  As at December 31, 2004 and 2003, the remaining excess of debt
forgiven over the value of consideration given balance amounted to Php2,380
million and Php8,784 million, respectively, after giving effect to the above
interest expense, cancellation of Piltel debt through Smart acquisition from
Piltel&#146;s creditors of the 69.4% of outstanding restructured Piltel debt, see <i>Note
12 &#150; Interest-bearing Financial Liabilities,</i> and the additional issuances
in 2004, 2003 and 2002 of convertible preferred shares to restructure Piltel&#146;s
debt.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
difference between the aggregate fair value of the Series V, VI and VII
Convertible Preferred Stock at issue date (net of the bifurcated option values
for Series VI and VII) and the aggregate redemption value is accreted over the
period up to the call option date using the effective interest rate method.
Accretions added to &#147;Preferred stock subject to mandatory redemption&#148; and
charged against accumulated deficit for the years ended December 31, 2004 and 2003 amounted to Php1,503 million and Php1,309 million, respectively.
Unaccreted balance as at December 31, 2004 and 2003 amounted to Php7,060
million and Php8,577 million, respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&#147;Preferred
stock subject to mandatory redemption&#148; amounted to Php14,956 million and
Php13,321 million as at December 31, 2004 and 2003, respectively, after
revaluation of Series VI and VII Convertible Preferred Stock to the exchange
rates at balance sheet dates and after giving effect to the above accretions, cancellation
of Piltel debt through Smart acquisition from Piltel&#146;s creditors of the 69.4%
of outstanding restructured Piltel debt conversions and additional issuances.
As at December 31, 2004 and 2003, 1,060,940 shares and 676,571 shares,
respectively, of the Convertible Preferred Stock have been converted into PLDT
common shares.  The aggregate redemption value of the outstanding Series V, VI
and VII Convertible Preferred Stock amounted to Php22,016 million and Php21,898
million as at December 31, 2004 and 2003, respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div style='border:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 0in 0in'>

<p style='line-height:50%;border:none;padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0"><b>15.    Stockholders&#146; Equity</b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
movement of PLDT&#146;s capital account follows:</p>

<p align=right style='text-align:right;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:98.78%;margin-left:5.4pt;border-collapse:collapse;border-collapse:
 collapse !msorm'>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;
 border-top:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=4 valign=bottom style=' border-top:double windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:double windowtext 1.5pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Preferred Stock</b> &#150; Php10 par value</p>
 </td>
 <td   colspan=4 valign=bottom style=' border:none;
 border-top:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;
 border-top:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal;page-break-after:auto' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Series <br>
 A to EE</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-top:solid windowtext 1.0pt !msorm;
 padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>III</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>IV</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Common Stock</b>
 &#150;Php5 par value</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal;page-break-after:auto' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='margin-left:3.55pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>No. of Shares</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Total Preferred Stock</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>No. of Shares</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=8 valign=bottom style=' border:none;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(in million shares and pesos)</p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='' style="margin-top:0;margin-bottom:0"><b>Authorized</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">823</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php8,230</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">234</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php1,170</p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='' style="margin-top:0;margin-bottom:0"><b>Outstanding</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='' style="margin-top:0;margin-bottom:0">Balance at January 1, 2002</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">372</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">36</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"> 413</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php4,129</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">168</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php845</p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:8.1pt' style="margin-top:0;margin-bottom:0">Issuance</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">37</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">  44</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">440</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:8.1pt' style="margin-top:0;margin-bottom:0">Conversion</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(23)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:8.1pt' style="margin-top:0;margin-bottom:0">Redemption</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(7)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(7)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(72)</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='' style="margin-top:0;margin-bottom:0">Balance at December 31, 2002</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"> 407</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">   5</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">  36</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"> 448</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php4,474</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"> 169</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php847</p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style=';margin-left:4.5pt;
 text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 <p style=';margin-left:4.5pt;
 text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='' style="margin-top:0;margin-bottom:0">Balance at January 1, 2003</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"> 407</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">   5</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">  36</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"> 448</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php4,474</p>
 </td>
 <td   colspan=2 valign=top style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"> 169</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php847</p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:8.1pt' style="margin-top:0;margin-bottom:0">Issuance</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">   5</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">52</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:8.1pt' style="margin-top:0;margin-bottom:0">Conversion</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(21)</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-bottom:
 double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='' style="margin-top:0;margin-bottom:0">Balance at December 31, 2003</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"> 410</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">   5</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">  36</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"> 451</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php4,505</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"> 169</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php847</p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style=';margin-left:4.5pt;
 text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='' style="margin-top:0;margin-bottom:0">Balance at January 1, 2004</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"> 410</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">   5</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">  36</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"> 451</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php4,505</p>
 </td>
 <td   colspan=2 valign=top style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"> 169</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php847</p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:8.1pt' style="margin-top:0;margin-bottom:0">Issuance</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">   1</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">9</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:8.1pt' style="margin-top:0;margin-bottom:0">Conversion</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(17)</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-bottom:
 double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style='' style="margin-top:0;margin-bottom:0"><b>Balance at </b><b>December 31, 2004</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b> 409</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>   5</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>  36</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b> 450</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>Php4,497</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b> 170</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>Php851</b></p>
 </td>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 </tr>
 <tr height=0>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>Preferred Stock</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
preferred stock is non-voting, except as specifically provided by law, and is
preferred as to liquidation.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The Series A to EE 10% Cumulative
Convertible Preferred Stocks earn cumulative dividends at an annual rate of
10%.  After the lapse of one (1) year from the last day of the year of issuance
of a particular series of 10% Cumulative Convertible Preferred Stock, any
holder of such series may convert all or any of the shares of 10% Cumulative
Convertible Preferred Stock held by him into fully paid and non-assessable
shares of Common Stock of PLDT, at a conversion price equivalent to 10% below
the average of the high and low daily sales price of a share of Common Stock on
the PSE, or if there shall have been no such sales on the PSE on any day, the
average of the bid and the asked prices of a share of Common Stock of PLDT at
the end of such day on such Exchange, in each such case averaged over a period
of 30 consecutive trading days prior to the conversion date, but in no case
shall the conversion price be less than the price set by the Board of Directors
which, as at December 31, 2004, was Php5.00 per share.  The number of shares of
Common Stock issuable at any time upon conversion of one share of subscriber
investment plan, or SIP, Cumulative Convertible Preferred Stock shall be
determined by dividing Php10.00 by the then applicable conversion price.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
case the shares of Common Stock at anytime outstanding shall be subdivided into
a greater or consolidated into a lesser number of shares, then the minimum
conversion price per share of Common Stock shall be proportionately decreased
or increased, as the case may be, and in the case of a stock dividend, such
price shall be proportionately decreased, provided, however, that in every case
the minimum conversion price shall not be less than the par value per share of
Common Stock.  In the event the relevant effective date for any such
subdivision or consolidation of shares or stock dividend occurs during the
period of thirty (30) trading days preceding the presentation of any shares of
10% Cumulative Convertible Preferred Stock for conversion, a similar adjustment
shall be made in the sales prices applicable to the trading days prior to such
effective date utilized in calculating the conversion price of the shares
presented for conversion.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
case of any other reclassification or change of outstanding shares of Common
Stock, or in case of any consolidation or merger of PLDT with or into another
corporation, the Board of Directors shall make such provisions, if any, for
adjustment of the minimum conversion price and the sales price utilized in
calculating the conversion price as the Board of Directors, in its sole
discretion, shall deem appropriate.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">At
PLDT&#146;s option, the Series A to EE 10% Cumulative Convertible Preferred Stocks
are redeemable at par value plus accrued dividends five years after the year of
issuance.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">On
 January 22, 2002, the Board of Directors designated 10 million shares of
serial preferred stock as Series CC 10% Cumulative Convertible Preferred Stock
for issuance throughout 2002.  In addition, on February 26, 2002, the Board of Directors designated an additional 15 million shares of serial preferred stock
as Series AA 10% Cumulative Convertible Preferred Stock.  The issuances of the
10 million shares of Series CC 10% Cumulative Convertible Preferred Stock and
the additional 15 million shares of Series AA 10% Cumulative Convertible
Preferred Stocks are exempt transactions under Section 10.2 of the Securities
Regulation Code of the Philippines, or SRC, as confirmed by the Philippine SEC
on March 13, 2002 and July 31, 2002, respectively.  The PSE approved the
listing of the 10 million shares of Series CC 10% Cumulative Convertible
Preferred Stock and the additional 15 million shares of Series AA 10%
Cumulative Convertible Preferred Stock on August 14, 2002.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">On December 2, 2002, the Board of
Directors designated 10 million shares of serial preferred stock as Series DD
10% Cumulative Convertible Preferred Stock for issuance throughout 2003 and an
additional 10 million shares of serial preferred stock as Series CC 10%
Cumulative Convertible Preferred Stock.  The issuances of the 10 million shares
of Series DD 10% Cumulative Convertible Preferred Stock and the additional 10
million shares of Series CC 10% Cumulative Convertible Preferred Stocks are
exempt transactions under Section 10.2 of the SRC, as confirmed by the
Philippine SEC on January 30, 2003.  In an earlier letter dated October 24, 2002, PSE
allowed PLDT to utilize 24,287,455 unissued preferred shares remaining listed
with the PSE in order to cover the issuance requirement of the other series
under PLDT&#146;s SIP.  The issuance requirement for the 10 million shares of Series
DD 10% Cumulative Convertible Preferred Stock and the additional 10 million
shares of Series CC 10% Cumulative Convertible Preferred Stock will be taken
from the said remaining listed and unissued preferred shares.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On January 27, 2004, the
Board of Directors designated 1 million shares of serial preferred stock as
Series EE 10% Cumulative Convertible Preferred Stock for issuance throughout
2004, which is an exempt transaction under Section 10.2 of the SRC as confirmed
by Philippine SEC on March 22, 2004.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On
December 9, 2004, the Board of Directors designated 500,000 shares of serial
preferred stock as Series FF 10% Cumulative Convertible Preferred Stock for
issuance throughout 2005 wherein exemption of these transactions under Section
10.2 of the SRC is still awaiting confirmation from Philippine SEC.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The Series III Convertible
Preferred Stock earns cumulative dividends at an annual rate of US$3.50 a share
payable quarterly, free and clear of Philippine withholding taxes.  It is
convertible into Common Stock at the option of the holder at any time, at the
conversion price of US$29.19 per share of Common Stock (equivalent to a
conversion ratio of 1.7129 shares of Common Stock for each share of Series III
Convertible Preferred Stock, each share of Series III Convertible Preferred
Stock being valued for this purpose at its reference amount of US$50 a share),
subject to adjustment in certain events; and are not redeemable.  Moreover,
PLDT may require the mandatory conversion of some or all of the outstanding
shares of Series III Convertible Preferred Stock into shares of common stock at
the above conversion price of US$29.19 per share of common stock, if certain
conditions are met, including that (i) the average of the closing prices of the
ADSs reported on the NYSE on each trading day during the period of 30 days ending
on the seventh day prior to the date upon which notice of the date of mandatory
conversion is first given is greater than or equal to the conversion price in
effect on such seventh day, (ii) there are no dividends in arrears on any
shares of the Series III Convertible Preferred Stock, and (iii) PLDT has
sufficient distributable reserves to pay the fixed preferential dividends on
the shares of Series III Convertible Preferred Stock, calculated down to and
including the mandatory conversion date.  Upon liquidation of PLDT, holders of
the Series III Convertible Preferred Stock will be entitled to receive
liquidating distributions equivalent to Php11 per share, plus accrued and
unpaid dividends to the date of distribution, subject to the prior rights of
creditors.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
Series IV Cumulative Non-Convertible Redeemable Preferred Stock earns
cumulative dividends at an annual rate of 13.5% based on the paid-up
subscription price.  It is redeemable at the option of PLDT at any time one
year after subscription and at the actual amount paid for such stock, plus
accrued dividends.  On February 26, 2002, the Board of Directors called for the payment of a
portion of the balance of the subscription price of the Series IV Cumulative
Non-Convertible Redeemable Preferred Stock amounting to Php72 million, which
was paid on March 5, 2002.  On March 22, 2002, PLDT redeemed 60 million shares
out of the 360 million subscribed shares of its Series IV Cumulative
Non-Convertible Preferred Stock and paid Php72 million, representing the redemption
price plus unpaid dividends up to the date of redemption.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
shares of preferred stock, except shares of Series V, VI and VII PLDT
Convertible Preferred Stock, redeemed or converted into common stock shall
revert to and form part of the unissued preferred stock, and may be reissued in
any other series that the Board of Directors may, from time to time, establish
and designate.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The provisions of certain subscription agreements
involving preferred stock have an effect on the ability of PLDT to, without
written consent, sell certain assets and pay cash dividends unless all
dividends for all past quarterly dividend periods have been paid and provision
has been made for the currently payable dividends.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div style='border:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 0in 0in'>

<p style='line-height:50%;page-break-after:avoid;border:none;
padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='page-break-after:avoid;punctuation-wrap:hanging;
text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0"><b>16.    Related Party Transactions</b></p>

<p style='margin-left:40.5pt;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:22.5pt' style="margin-top:0;margin-bottom:0">The
following is a summary of related party accounts with affiliates presented as
part of our consolidated balance sheets as of December 31, 2004 and 2003 and
consolidated statements of income for the three years ended December 31, 2004,
2003, and 2002:</p>

<p style='margin-left:40.5pt;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse'>

 <tr>
 <td   valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:3.0pt;text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=right style=';margin-right:
 6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Consolidated
 Balance Sheets</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-align:justify' style="margin-top:0;margin-bottom:0">Accrued expenses and other current liabilities</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-left:9.0pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>3,270</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,260</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse'>
 <tr>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:3.0pt;text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:37.8pt;text-align:right' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">Consolidated Statements
 of Income</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-left:9.0pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-align:justify' style="margin-top:0;margin-bottom:0">Cost of satellite air time</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:9.0pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,299</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,919</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">50</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-align:justify' style="margin-top:0;margin-bottom:0">Professional fees and other service fees</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:9.0pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>694</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">616</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">636</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-align:justify' style="margin-top:0;margin-bottom:0">Insurance and securities</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:9.0pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>534</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">581</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">367</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-align:justify' style="margin-top:0;margin-bottom:0">Maintenance expenses</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:9.0pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>111</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">68</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">65</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-align:justify' style="margin-top:0;margin-bottom:0">Selling and promotions</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:9.0pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>32</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">26</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">14</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-align:justify' style="margin-top:0;margin-bottom:0">Rent</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:9.0pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>6</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:40.5pt;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0"><i>a.   Air Time Purchase Agreement between PLDT and AIL
and Related Agreements</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
March 1997, PLDT entered into a National Service Provider, or Founder NSP, Air
Time Purchase Agreement with PT Asia Cellular Satellite, as amended in December
1998 and as assigned and transferred to AIL, under which PLDT was granted the
exclusive right to sell ACeS services in the Philippines.  In exchange, the
Air Time Purchase Agreement required PLDT to purchase from PT Asia Cellular
Satellite at least US$5 million worth of air time annually over ten years,
commencing on January 1, 2002, the date of commercial operations.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In the event that PT Asia Cellular Satellite&#146;s aggregate billing
revenue is less than US$45 million in any given year, the Air Time Purchase
Agreement states that PLDT has to make supplemental air time purchase payments
not to exceed US$15 million per year during the ten-year term.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">We believe that the payment obligations under the Air
Time Purchase Agreement exceeded the economic benefits expected to be received
under it as a result of the delay in the launch of the satellite,
unavailability of competitive handsets and competitions from cellular services,
occurrence of a partial satellite loss, changes in the primary business of AIL
and other factors affecting its business.  Accordingly, we started negotiations
with AIL for the revision of the payment obligations under the Air Time
Purchase in 2000.  As a result of these negotiations, the effective date of the
Air Time Purchase Agreement became January 1, 2002.
In 2002, billings for satellite air time were reduced to actual air time usage,
less amount for marketing assistance to service providers.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">PLDT and the other founder NSPs are endeavoring to amend the Air Time
Purchase Agreement due to the occurrence of partial satellite loss, changes in
the primary business of ACeS and other events affecting the business.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In March 2003, PLDT, together with the other founder NSPs, entered into
a Standstill Agreement with AIL suspending the application and enforcement of
the minimum and supplemental air time payments under the original Air Time
Purchase Agreement.  The parties agreed that AIL shall provide PLDT and the
other founder shareholders, with unlimited use of air time for the year 2003 in
exchange for a fixed fee in the amount of US$3.8 million for PLDT.  Moreover,
PLDT is also obliged to purchase from AIL 13,750 satellite phone units in 2003
at US$395 F.O.B. per unit, subject to quarterly price adjustments.  The parties
to the Standstill Agreement also agreed to negotiate in good faith and use
their best efforts to reach an agreement on a revised Air Time Purchase
Agreement before November 15, 2003 that will cover, among other things, the
amended minimum and supplemental air time payment provisions subject to the
approval of AIL&#146;s creditors.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">On February 10, 2004, notwithstanding the ongoing
negotiations, AIL advised PLDT of the termination of the Standstill Agreement
and the reinstatement of the terms under the original Air Time Purchase
Agreement effective January 1, 2002, following the lapse of the November 15,
2003 deadline set in the Standstill Agreement for the negotiation of a revised
Air Time Purchase Agreement.  Negotiations are continuing with the relevant
parties towards an amicable settlement of this matter.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">As at December
 31, 2004 and 2003, PLDT&#146;s outstanding
payables under the original Air Time Purchase Agreement was Php2,954 million
and Php1,992 million, respectively.  Total fees under this agreement amounted
to Php1,299 million, Php1,919 million and Php50 million for the years ended December 31, 2004,
2003 and 2002, respectively.  See <i>Note 21 &#150; Contractual Obligations and
Commercial Commitments</i> and <i>Note 22 &#150; Provisions and Contingencies </i>for
further discussion.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">PLDT also entered into a Founder NSP Operating Agreement with PT Asia
Cellular Satellite on March 12, 1997, under which PLDT may:</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
authorize distributors to resell
ACeS services in the Philippines upon prior approval from PT Asia Cellular Satellite;
and</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
appoint agents to solicit and bill
PLDT&#146;s or its authorized distributors&#146; subscribers for ACeS services and to
sell terminals on behalf of PLDT.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Under
an Assignment and Assumption Agreement dated December 29, 1998, PT Asia
Cellular Satellite agreed to assign and transfer to AIL of PT Asia Cellular
Satellite&#146;s rights under the Founder NSP Air Time Purchase Agreement and
Founder NSP Operating Agreement.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Under
an Acknowledgment of Assignment of the Air Time Purchase Agreement entered into
on December 29, 1998, by and among PLDT, P.T. Bank Internasional Indonesia and
AIL, PLDT consented to the assignment by AIL of the Founder NSP Air Time
Purchase Agreement to P.T. Bank Internasional Indonesia, as security agent, for
the benefit of the secured parties under the Security Agreement dated December
29, 1998, which was executed in connection with the Amended and Restated Credit
Agreement dated as at December 29, 1998 among PT Asia Cellular Satellite, AIL,
P.T. Bank Internasional Indonesia and various banks.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On
September 30, 2002, PT Asia Cellular Satellite, AIL, as guarantor, P.T. Bank
Internasional Indonesia, as security agent, and various other banks signed a
Rescheduling Agreement, which amended the terms of the Amended and Restated
Credit Agreement dated December 29, 1998, moving the principal repayment dates
to agreed periods with the final maturity date on January 30, 2012.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0"><i>b.   Transactions with </i><i>Major</i><i>
Stockholders, Directors and Officers </i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Transactions
to which PLDT or its subsidiary was a party, in which a director or key officer
or owner of more than 10% of the common stock of PLDT, or any member of the
immediate family of a director or key officer or owner of more than 10% of the
common shares of PLDT had a direct or indirect material interest in PLDT or its
subsidiary, as at December 31, 2004 and 2003 and for the years ended December
31, 2004, 2003 and 2002 are as follows:</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>1.     Agreements with NTT Communications
and/or its Affiliates</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">PLDT
is a party to the following agreements with NTT Communications and/or its
affiliates:</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Advisory Services Agreement</i>.   On March 24, 2000, PLDT entered into an agreement
with NTT Communications, as amended on December 31, 2003, under which NTT
Communications provides PLDT with technical, marketing and other consultants
for various business areas of PLDT starting April 1, 2000;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Domestic Fiber Optic Network
Submerged Plant Maintenance Agreement</i>.
On July 4, 2000, PLDT entered into an agreement with NTT World
Engineering Marine Corporation, or NTT WEMC, for submarine cable repair and
other related services for the maintenance of PLDT&#146;s domestic fiber-optic
network, or DFON, submerged plant for a period of five years up to July 4, 2005.  This
agreement has been extended up to the end of 2005.  Under the agreement, PLDT
is required to pay NTT WEMC a fixed annual standing charge of US$2 million,
excluding cost for the use of a remotely operated submersible vehicle at
US$5,000 for every day of use and repair cost computed at US$19,000 per day of
actual repair;</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Arcstar Licensing Agreement and
Arcstar Service Provider Agreement.   </i>On
March 24, 2000, PLDT entered into an agreement with NTT Worldwide
Telecommunications Corporation under which PLDT markets managed data and other
services under NTT Communications&#146; &#147;Arcstar&#148; brand to its corporate customers
in the Philippines.  PLDT also entered into a Trade Name and Trademark
Agreement with NTT Communications under which PLDT has been given the right to
use the tradename &#147;Arcstar&#148; and its related trademark, logo and symbols, solely
for the purpose of PLDT&#146;s marketing, promotional and sales activities for the
Arcstar services within the Philippines; and</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:54.4pt;text-indent:-18.4pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Conventional International Telecommunications
Services Agreement</i>.   On March 24, 2000, PLDT
entered into an agreement with NTT Communications under which PLDT and NTT
Communications agreed to cooperative arrangements for conventional
international telecommunications services to enhance their respective
international businesses.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Total fees under these agreements
amounted to Php336 million, Php288 million and Php289 million for the years
ended December 31, 2004, 2003 and 2002, respectively.  As at December 31, 2004 and
2003, outstanding obligations of PLDT amounted to Php49 million and Php40
million, respectively.</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>2.     Agreement between Smart and </i><i>Asia</i><i>
Link B.V., or ALBV </i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Smart
has an existing Technical Assistance Agreement with ALBV for the latter to
provide technical support services and assistance in the operations and
maintenance of cellular business for a period of five years, subject to renewal
upon mutual agreement between the parties.  The agreement provides for
quarterly payments of technical service fees equivalent to 2% of the net
revenues of Smart.  In January 2004, the agreement was amended, reducing the
technical service fees to be paid by Smart to ALBV to 1% of net revenues
effective January 1, 2004.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Smart
also has an existing Services Agreement with ALBV for a period of 25 years
starting January 1, 1999, which shall automatically expire unless renewed by
mutual agreement of both parties.  Under the agreement, ALBV provides advice
and assistance to Smart in sourcing capital equipment and negotiating with
international suppliers, arranging international financing and other services
therein consistent with and for the furtherance of the objectives of the
services.  Service agreement fees were paid for the whole 25-year period.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">ALBV
is a subsidiary of the First Pacific Group.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Total
fees under these agreements amounted to Php507 million for the year ended December 31, 2004 and Php429 million for each of the years ended December 31, 2003 and 2002.  Outstanding obligations of Smart under the Technical Service Agreement
amounted to Php267 million and Php228 million as at December 31, 2004 and 2003, respectively.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>3.     Agreements relating to insurance companies</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Gotuaco del Rosario and Associates, or Gotuaco, acts
as the broker for certain insurance companies to cover certain properties of
the PLDT Group.  Insurance premiums are remitted to Gotuaco and the broker&#146;s
fees are settled between Gotuaco and the insurance companies.  In addition,
PLDT has an insurance policy with Malayan Insurance Co., Inc., or Malayan,
wherein premiums are directly paid to Malayan.  Total insurance expenses paid
under this agreement amounted to Php534 million, Php581 million and Php367
million for the years ended December 31,
 2004, 2003 and 2002, respectively.  Two
directors of PLDT have a direct/indirect interest in or serve as
director/officer of Gotuaco and Malayan.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="OLE_LINK1">&nbsp;</a></p>

<div style='border:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 0in 0in'>

<p style='line-height:50%;border:none;padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0"><b>17.    Employee Benefits</b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>Share-Based Payment</i></b></p>

<p style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='margin-left:.2in;text-indent:21.05pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>Executive Stock Option Plan, or ESOP</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Stock options granted under the ESOP vest over five
years and have a maximum contractual life of ten years from the date of grant.
The exercise price of the options granted under the ESOP shall not be lower
than the average of the closing price of our common stock on the PSE for 30
calendar days immediately preceding the date of grant.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
stock options granted under the ESOP shall vest each year, beginning two years
from the grant date at a per year rate of 25% of the options granted.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
number of shares reserved under the ESOP should not exceed 1.2% of the total
issued common shares of PLDT, and the number of shares reserved for issuance
under the ESOP is increased to include any shares of PLDT&#146;s common stock
issuable upon exercise of options granted under the ESOP that expire or lapse
for any reason without having been exercised in full. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
ESOP will terminate on December 10, 2009, unless PLDT&#146;s Board of Directors terminates it
earlier. </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">On
December 10, 1999, PLDT granted 1,289,745 options to purchase shares of
PLDT&#146;s common stock under the ESOP.  Stock option activity under the ESOP for
the years ended December 31, 2004, 2003 and 2002 is summarized below:</p>

<p align=right style='text-align:right;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0  style='width:472.5pt;border-collapse:collapse;border-collapse:collapse !msorm'>
 <tr style='height:9.3pt' style='height:9.3pt !msorm'>
 <td  valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:9.3pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:9.3pt'>
 <p align=center style='margin-right:4.3pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Weighted Average
 Exercise Price Per Share</b></p>
 </td>
 <td  valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:9.3pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td  valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:9.3pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td  valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:9.3pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Balance at beginning of year</p>
 </td>
 <td  valign=top style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.5in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php814</p>
 </td>
 <td  valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>900,118</b></p>
 </td>
 <td  valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,226,395</p>
 </td>
 <td  valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,157,258</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Granted</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.5in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">814</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">144,428</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Exercised
 shares</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.5in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">814</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin:0in;margin-bottom:.0001pt;
 text-align:right;line-height:normal' style="margin-top:0;margin-bottom:0"><b>(336,745)</b></p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cancelled</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.5in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">814</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(26,784)</b></p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(326,277)</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(75,291)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 background:#E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 2.25pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Balance at end of year</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 background:#E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 2.25pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.5in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php814</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:double windowtext 2.25pt;
 background:#E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 2.25pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>536,589</b></p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">900,118</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,226,395</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">All
the above grants under the ESOP were made to executives of PLDT and all outstanding
stock options became fully vested in December 2004.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
number of options exercisable at December 31, 2004
and 2003 were 536,589 shares and 681,358 shares, respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">In
conformity with the provisions of SFAS 123, the fair value of each option is
estimated using the Black-Scholes valuation model with the following
assumptions for grants under the ESOP during the year ended December 31, 1999:
volatility of 71.3%, risk-free interest rate of 8.94% at the date of grant and
an expected term of five years.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
weighted average per share fair value of common stock options granted in 2002
was Php582.59.  The remaining weighted average contractual life was five years
as at December 31, 2004.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As
at December 31, 2004, 336,745 shares were already exercised by certain
officers and executives at an exercise price of Php814 per share.  Of the
336,745 exercised shares, 1,649 shares were unissued as at December 31, 2004.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>ESPP</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Beginning January 3, 2000
up to March 31, 2000, we made our ninth offering under the PLDT&#146;s ESPP,
under which we made available up to 991,200 shares of common stock to all
eligible employees as at January 3, 2000.  The shares were offered at a discounted price of
Php877.63 per share, which was 85% of the average market price of our common
share on the PSE on January 3, 2000.  The 36-month installment payment period providing
for payment through payroll deductions began on April 30, 2000 and ended on April 15, 2003.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">A
certain amount for every share each employee elected to purchase was deducted
from the employee&#146;s salary beginning with the first payroll on April 30, 2000 and
ended with the last payroll period of April 15, 2003.
No prepayment of the purchase price was allowed.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
maximum number of shares that may be issued and sold under the Plan is 5.6
million.  There were no sales under the Plan for the years ended December 31, 2003 and
2002.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The estimated grant date fair value was calculated
using the Black-Scholes valuation model.  The following weighted average
assumptions were included in the estimated grant date fair value calculations
for rights to purchase stock under PLDT&#146;s ESPP: volatility of 34.5%, risk-free
interest rate of 8.78% at the date of grant and an expected term of five years.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
weighted average estimated fair value, as defined by SFAS 123, at grant date of
the rights to purchase stock under the ESPP was Php371.93 per share.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>LTIP</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">On August 3,
 2004, PLDT&#146;s Board of Directors approved
the establishment of the LTIP for eligible key executive officers and advisors
of PLDT and its subsidiaries, which is administered by the Executive
Compensation Committee.  The LTIP is a four-year cash plan covering the period
from January 1, 2004 to December 31,
 2007.  The LTIP awards payment at the
end of the four-year period (without interim payments) is contingent upon the
achievement of an approved target increase in PLDT&#146;s common share price by the
end of the plan period and a cumulative consolidated net income target for the
plan period.  The target increase in the PLDT base share price, which is the
average of the closing prices of PLDT shares ten trading days before or after December 31, 2003, is
approximately 15% per annum compounded for the plan period.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The
compensation cost from LTIP was measured using the variable accounting method
under APB Opinion No. 25 since the plan is a variable plan.  The accounting for
variable plans requires that an estimate of compensation expense be recognized
and updated at each accounting period until the measurement date.  The final
measurement of compensation expense is not determinable until both the number
of shares and the exercise price per share are known.  The compensation cost
recognized as an expense for the year ended December 31, 2004 amounted to
Php378 million.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Pension</i></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='margin-left:.25in;text-align:justify;text-indent:
..25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>PLDT</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">PLDT has a trustee-managed, non-contributory defined
benefit plan, or Benefit Plan, providing for retirement and death benefits and
service terminal pay to substantially all permanent and regular employees.  The
Benefit Plan provides benefits upon normal retirement beginning at age 65,
early retirement beginning at age 50 or completion of at least 30 years of
credited service, voluntary separation beginning at age 40 or completion of at
least 15 years of credited service, total and physical disability, death and
involuntary separation.  Benefits under the Benefit Plan are based on the
employee&#146;s final monthly basic salary and length of service.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
conformity with SFAS 132, &#147;Employers&#146; Disclosures about Pensions and Other
Postretirement Benefits,&#148; the following table sets forth the Plan&#146;s funded
status and pension amounts recognized as at December 31, 2004, 2003 and 2002
based on the latest actuarial valuation dated February 2005:</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.54%;border-collapse:collapse'>

 <tr>
 <td   valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-right:5.15pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:5.15pt;text-align:center;
 text-indent:33.8pt' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid;height:11.7pt'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">Change in benefit
 obligation:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:11.7pt'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:11.7pt'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:11.7pt'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Benefit
 obligation at beginning of year</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>5,971</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">7,984</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">6,637</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Service
 cost</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>382</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">515</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">452</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Interest
 cost</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>535</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">716</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">794</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Benefits
 paid</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.0pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(18)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:1.45pt;text-align:right' style="margin-top:0;margin-bottom:0">(17)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:1.45pt;text-align:right' style="margin-top:0;margin-bottom:0">(495)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Actuarial
 loss (gain)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>679</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:1.45pt;text-align:right' style="margin-top:0;margin-bottom:0">(1,227)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">596</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Curtailment</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>116</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">274</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Settlement</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.0pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(801)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:1.45pt;text-align:right' style="margin-top:0;margin-bottom:0">(2,274)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Benefit obligation at end of year</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>6,864</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">5,971</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">7,984</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Change in plan assets:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Fair
 value of plan assets at beginning of year</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>3,927</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2,915</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2,781</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Employer&#146;s
 contribution</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>883</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2,703</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">470</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Actual
 return on plan assets</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>457</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">600</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">159</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Settlement</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.0pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(801)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:1.45pt;text-align:right' style="margin-top:0;margin-bottom:0">(2,274)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Benefits
 paid</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.0pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(18)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:1.45pt;text-align:right' style="margin-top:0;margin-bottom:0">(17)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:1.45pt;text-align:right' style="margin-top:0;margin-bottom:0">(495)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Fair value of plan assets at
 end of year</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>4,448</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">3,927</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2,915</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Funded status</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.0pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(2,416)</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.0pt;text-align:right' style="margin-top:0;margin-bottom:0">(2,044)</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.0pt;text-align:right' style="margin-top:0;margin-bottom:0">(5,069)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Unrealized net transition
 obligation</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>199</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">229</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">275</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Unrecognized net actuarial loss (gain)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>89</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.0pt;text-align:right' style="margin-top:0;margin-bottom:0">(498)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">837</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Accrued benefit cost</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.0pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(2,128)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.0pt;text-align:right' style="margin-top:0;margin-bottom:0">(2,313)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.0pt;text-align:right' style="margin-top:0;margin-bottom:0">(3,957)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Components of net periodic
 benefit cost:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Service
 cost</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>382</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">515</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">452</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Interest
 cost</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>535</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">716</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">794</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Expected
 return on plan assets</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.0pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(376)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.0pt;text-align:right' style="margin-top:0;margin-bottom:0">(303)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.0pt;text-align:right' style="margin-top:0;margin-bottom:0">(369)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Amortizations of:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Unrecognized
 net transition obligation</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>10</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">13</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">14</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Unrecognized
 actuarial loss</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Net periodic benefit cost</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b> 551</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 943</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 891</p>
 </td>
 </tr>
</table></center></div>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style="margin-top:0;margin-bottom:0">The accumulated benefit
obligations amounted to Php2,868 million, Php4,330 million and Php2,552 million
as at December 31, 2004, 2003 and 2002, respectively.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
significant assumptions used in determining the actuarial present value of the
projected benefit obligations as at December 31, 2004, 2003 and 2002 are as
follows:</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.88%;border-collapse:collapse'>
 <tr>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Weighted
 average assumptions:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Discount
 rate</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>10%</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">9%</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">9%</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Expected
 return on plan assets</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>10%</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">9%</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">8%</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Rate
 of compensation increase</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>7%</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">6%</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">9%</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
allocation of the fair value of plan assets follows:</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:99.98%;border-collapse:collapse'>
 <tr>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Investments in debt
 securities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>30%</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">36%</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">39%</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Investments in equity
 securities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>35%</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">42%</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">52%</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>35%</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">22%</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">9%</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>100%</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">100%</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">100%</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:27.35pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">As at December
 31, 2004, investments in equity
securities in the plan assets include shares of stocks of PLDT and Piltel with
a total fair value of Php1,407 million, or 31% of the total fair value of plan
assets (36% in 2003 and 47% in 2002).</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Movements
of shares of stock of PLDT and Piltel held by the plan during 2004 are as
follows:</p>

<p align=right style='text-align:right;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.36%;background:#E0E0E0;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;background:transparent;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:transparent;padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:6.3pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>PLDT</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:transparent;padding:0in 0in 0in 0in'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">Piltel</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:transparent;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:transparent;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Common Shares</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:transparent;padding:0in 0in 0in 0in'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal;page-break-after:auto' style="margin-top:0;margin-bottom:0">Preferred Shares</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:transparent;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Common Shares</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Numbers of shares held by the plan as at January 1, 2004</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">661,643</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">36,000,000</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">37,853,680</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Purchases during the year</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Sales during the year</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">17,894,920</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Number of shares held by the plan as at </b><b>December 31, 2004</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>661,643</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>36,000,000</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>19,958,760</b></p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Dividends
received by the plan from PLDT for the years ended December 31, 2004, 2003 and
2002 amounted to Php47 million, Php51 million and Php48 million, respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">PLDT expects to make
approximately Php633 million of cash contributions to its pension plan in 2005.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The table below presents the expected compulsory
retirement benefits of PLDT to be paid out of the fund for the next ten years:</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse'>
 <tr>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Year</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2005</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:38.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">51</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:38.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">74</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:38.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">105</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2008</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:38.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">150</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2009</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:38.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">151</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2010 and onwards</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:38.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,071</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>Smart</i></p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Smart
has a trustee-managed, tax-qualified provident plan, or Provident Plan,
providing for retirement, death or service terminal pay to substantially all
permanent and regular employees.  Under the Provident Plan, Smart contributes
to the provident fund for the credit of each member&#146;s Personal Retirement
Account, or PRA, a percentage of such member&#146;s monthly salary.  Net earnings of
the Provident Fund are credited every nine months to the PRAs of the members
based on their proportionate share in the total value of the Provident Fund as
at the end of the preceding period.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">In
October 2003, Smart&#146;s Board of Directors approved enhancements to the
retirement plan.  The enhanced retirement plan gives a member the option to
contribute to the fund up to a maximum of 10% of his monthly salary.  On top of
its current contribution, Smart will provide an additional contribution of up
to 50% of the member&#146;s contribution, depending on his tenure in the company.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Any
benefit payable under the Provident Plan shall be in lieu of or in compliance
with, but not in addition to, the payment of similar benefits Smart is required
to pay to its employees under existing or future laws, employment contracts or
collective bargaining agreements, it being understood that the employee shall
be entitled only to the higher of the Provident Plan or other available
benefits, but not to both.</p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The following are the minimum
additional disclosures as required by SFAS 132 based on the latest actuarial
valuation dated February 2005:</p>

<p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.84%;border-collapse:collapse'>

 <tr>
 <td   valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:6.1pt;text-align:center;
 text-indent:40.7pt' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Change in benefit
 obligation:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Benefit
 obligation at beginning of year</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>226</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">159</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">125</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Service
 cost</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>50</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">44</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">45</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Interest
 cost</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>23</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">16</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">12</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Benefits
 paid</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(9)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">(1)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Actuarial
 loss (gain)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>67</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right' style="margin-top:0;margin-bottom:0">9</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">(22)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Benefit obligation at end
 of year</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0"><b> 357</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0"> 226</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0"> 159</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Change in plan assets:</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Fair
 value of plan assets at beginning of year</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>318</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0">197</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0">119</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Employer&#146;s
 contribution</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>157</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0">71</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0">54</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Actual
 return on plan assets</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>56</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0">28</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0">25</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Benefits
 paid</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(9)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">(1)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Fund
 transfers due to transferees from Telecoms Solutions, Inc.</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0">24</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Fair value of plan assets
 at end of year</p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0"><b> 522</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0"> 318</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0"> 197</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Funded status</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>165</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0">92</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0">38</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Unrecognized net transition
 obligation</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(7)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">(7)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">(7)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Unrecognized net actuarial
 loss (gain) </p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>27</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">(19)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">(23)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Prepaid benefit cost</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>185</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0">  66</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0">   8</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Components of net periodic
 benefit cost:</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Service
 cost</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>50</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0">44</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0">45</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Interest
 cost</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>23</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0">16</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0">12</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Expected
 return on plan assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(35)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">(23)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">(14)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Net periodic benefit cost</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>  38</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0">  37</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.1pt;text-align:right' style="margin-top:0;margin-bottom:0">  43</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:27.35pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
accumulated benefit obligations amounted to Php348 million, Php38 million and
Php25 million as at December 31, 2004, 2003 and 2002, respectively.</p>

<p style='text-indent:27.35pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The significant assumptions used in determining the
actuarial present value of the projected benefit obligations as at December 31,
2004, 2003 and 2002 are as follows:</p>

<p align=right style='text-align:right;text-indent:27.35pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.88%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Weighted average assumptions:</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Discount rate</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>10%</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10%</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10%</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Expected return on plan assets</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>10%</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10%</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10%</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Rate of compensation increase</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>10%</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10%</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9%</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
allocation of the fair value of plan assets follows:</p>

<p style='text-indent:27.35pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.86%;border-collapse:collapse'>
 <tr>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Investments in debt
 securities</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>78%</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">86%</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">89%</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Investments in equity
 securities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>20%</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12%</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5%</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2%</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2%</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6%</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>100%</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100%</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100%</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Smart
expects to make approximately Php84 million of cash contribution to its pension
plan in 2005.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The table below presents the expected compulsory
retirement benefits of Smart to be paid out of the fund for the next ten years:</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.88%;border-collapse:collapse'>
 <tr>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Year</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2005</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:38.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:38.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:38.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2008</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:38.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">15</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2009</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:38.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">26</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2010 and onwards</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:38.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">278</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
PLDT Group adopts an investment approach of mixed equity and fixed income
investments to maximize the long-term return of plan assets.  The investment
portfolio has been structured to achieve the objective of regular income with
capital growth and out-performance of benchmarks.  A majority of the investment
portfolio consists of fixed income debt securities and various equity
securities, while the remaining portion consists of multi-currency investments.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">SFAS
87 requires the use of an average rate of earnings expected on funds invested
or to be invested, considering returns being earned by plan assets in the fund
and rates of return expected to be available for reinvestment.  Due
consideration was given not only to historical performance of plan investments,
but also to the current investment mix and anticipated rates of return.   Thus,
the expected rate of return on assets was set at 10% per annum.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div style='border:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 0in 0in'>

<p style='line-height:50%;page-break-after:avoid;border:none;
padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='page-break-after:avoid;punctuation-wrap:hanging;
text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0"><b>18.    Operating Revenues and Expenses</b></p>

<p style='text-indent:27.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-align:justify' style="margin-top:0;margin-bottom:0"><i>Service Revenues</i></p>

<p align=right style='margin-left:.25in;text-align:right' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.78%;margin-left:.4pt;border-collapse:collapse;border-collapse:
 collapse !msorm'>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-top:solid windowtext 1.5pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-top:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-left:40.5pt;text-align:center' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Wireless
 services</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Cellular</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>65,866</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">52,932</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">34,500</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">VSAT</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,020</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">715</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">732</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Fixed
 lines</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Local exchange</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>20,606</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">20,728</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">21,345</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">International long distance</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>12,804</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">12,767</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">10,637</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">National long distance</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>6,736</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">6,561</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">7,818</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Data and other network</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>4,371</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">5,112</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">5,561</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Miscellaneous</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>535</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">328</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">492</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Information and communications technology</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,014</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">1,343</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">601</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>114,952</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">100,486</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">81,686</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:27.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-align:justify' style="margin-top:0;margin-bottom:0"><i>Non-service Revenues</i></p>

<p style='margin-left:.25in;text-align:justify' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.7%;margin-left:.4pt;border-collapse:collapse;border-collapse:
 collapse !msorm'>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-top:solid windowtext 1.5pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-top:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-left:40.5pt;text-align:center' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Sale of handsets and SIM-packs</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>6,111</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">10,548</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">12,095</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Point of product sales</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>158</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">166</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">50</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>6,269</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">10,714</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">12,145</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.25in;text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-align:justify;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>Compensation and Benefits</i></p>

<p style='margin-left:.25in;text-align:justify;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.78%;margin-left:.4pt;border-collapse:collapse;border-collapse:
 collapse !msorm'>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-left:40.5pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in millions of
 pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Salaries and benefits</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>10,336</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,722</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9,664</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Pension and other benefits (Note 17)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>777</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(21)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">890</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Incentive plans (Note 17)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>347</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">38</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">15</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">MRP (Note 11)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>566</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,565</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">324</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>12,026</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13,304</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,893</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-align:justify;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>Asset Impairment</i></p>

<p style='margin-left:.25in;text-align:justify' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.78%;margin-left:.4pt;border-collapse:collapse;border-collapse:
 collapse !msorm'>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-left:40.5pt;text-align:center' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Investments (Note 8)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,047</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Property, plant and
 equipment (Note 7)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>365</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">675</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">13,279</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,412</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">675</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">13,279</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.25in;text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-align:justify' style="margin-top:0;margin-bottom:0"><i>Financing Costs</i></p>

<p style='margin-left:.25in;text-align:justify' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.78%;margin-left:.4pt;border-collapse:collapse;border-collapse:
 collapse !msorm'>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-left:40.5pt;text-align:center' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Interest
 on loans and related items (Note 24)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>11,710</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">12,321</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">13,988</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Foreign exchange losses - net (Notes 12 and 23)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,812</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">9,672</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">5,052</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Accretion on financial liabilities - net (Notes 12
 and 23)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,185</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">729</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">643</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Hedge costs (Note 23)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,011</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">1,054</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">315</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Loss (gain) on derivative
 transactions - net (Note 23)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>828</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">1,631</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.7pt;text-align:right' style="margin-top:0;margin-bottom:0">(547)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Financing charges</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>146</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">263</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">243</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Capitalized interest (Notes 7 and 24)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.7pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(595)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.7pt;text-align:right' style="margin-top:0;margin-bottom:0">(887)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.7pt;text-align:right' style="margin-top:0;margin-bottom:0">(1,343)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>17,097</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">24,783</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:double windowtext 1.5pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">18,351</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.5in;text-align:justify;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.5in;text-align:justify' style="margin-top:0;margin-bottom:0"><i>Other Income - Net</i></p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.78%;margin-left:.4pt;border-collapse:collapse;border-collapse:
 collapse !msorm'>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-top:solid windowtext 1.5pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-top:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-left:40.5pt;text-align:center' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Gain on debt exchange and debt restructuring
 transactions <br>
 (Php16.59 per share) (Note 12)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,816</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Miscellaneous income
 (expense) - net</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(286)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">799</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,397</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,530</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">799</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,397</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div style='border:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 0in 0in'>

<p style='line-height:50%;border:none;padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">19.    Income Taxes</p>

<p style='text-indent:27.35pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
net current and noncurrent components of deferred tax assets recognized in the
consolidated balance sheets follow:</p>

<p style='text-indent:27.35pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.88%;border-collapse:collapse'>
 <tr>
 <td   valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"> </p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 text-indent:5.95pt' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 text-indent:5.95pt' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.2pt;text-align:right' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Net current
 deferred income tax assets</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 text-indent:5.95pt' style="margin-top:0;margin-bottom:0"><b>11,111</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 text-indent:5.95pt' style="margin-top:0;margin-bottom:0">7,932</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Net noncurrent deferred income tax assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 text-indent:5.95pt' style="margin-top:0;margin-bottom:0"><b>8,916</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 text-indent:5.95pt' style="margin-top:0;margin-bottom:0">12,780</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">The components of the consolidated net
deferred tax assets and liabilities are as follows:</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.02%;border-collapse:collapse'>

 <tr style='height:5.7pt'>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:5.7pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:5.7pt'>
 <p align=right style='margin-right:5.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:5.7pt'>
 <p align=right style='margin-right:5.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in millions of
 pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Current assets:</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Allowance for doubtful accounts</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>5,603</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,371</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Unearned revenues &#150; others</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,628</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">589</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">NOLCO</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,072</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,965</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Unearned prepaid card revenues </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>848</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">890</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Provision for unrealizable assets</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>452</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">519</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">MCIT</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>359</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,351</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Allowance for inventory obsolescence </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>353</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">232</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Past service pension cost</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>192</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">163</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Capital lease</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>181</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">173</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Derivative instruments</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>151</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">29</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,073</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">710</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>12,912</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13,992</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Current liabilities:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Unrealized gains on financial instruments</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(107)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(84)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>12,805</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13,908</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:18.4pt;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Less valuation allowance</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,694</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,976</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net current assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>11,111</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,932</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Noncurrent assets:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <p style='punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">     </p>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>Unrealized
 foreign exchange losses</td>
 </tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>13,011</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16,556</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.3in;text-indent:-12.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Asset impairment</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>7,180</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9,472</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.3in;text-indent:-12.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Excess of debt forgiven over value of
 consideration given</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,867</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,812</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Unrealized losses on derivative instruments</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>900</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">832</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.3in;text-indent:-12.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Accelerated depreciation</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,410</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">734</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.3in;text-indent:-12.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Past service pension cost</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>956</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">978</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.3in;text-indent:-12.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Accrued pension cost</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>711</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">792</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.3in;text-indent:-12.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Deferred charges</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>311</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">327</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.3in;text-indent:-12.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Asset retirement obligations</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>104</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">64</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.3in;text-indent:-12.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">LTIP</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>113</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.55pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 7.55pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 7.55pt'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>26,563</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 7.55pt'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">32,567</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Less valuation allowance</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>11,969</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13,614</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>14,594</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">18,953</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Noncurrent liabilities:</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Interest charges capitalized, net of amortization</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(5,044)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(5,320)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.3in;text-indent:-12.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Intangible assets</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(51)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Taxes and duties capitalized, net of amortization</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(583)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(650)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Undistributed earnings of a subsidiary</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(203)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(5,678)</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(6,173)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:12.1pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:12.1pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net noncurrent assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:12.1pt'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>8,916</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:12.1pt'>
 <p align=right style='margin-right:4.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,780</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Provision for (benefit from) income tax consists of:</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse;border-collapse:collapse !msorm'>
 <tr>
 <td   valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:31.5pt;text-align:right;
 text-indent:49.45pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in
 millions of pesos)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Current</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>7,357</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,331</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">589</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Deferred</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.1pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(531)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.1pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(3,731)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">849</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>6,826</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.1pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,400)</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 background:#E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 double windowtext 2.25pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,438</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Mabuhay
Satellite and Subic Telecom are registered as Subic Bay Freeport Enterprises
while Clark Telecom is registered as a Clark Special Economic Zone Enterprise
under R.A. No. 7227, otherwise known as the Bases Conversion and Development
Act of 1992, or the Act.  As registrants, Mabuhay Satellite, Subic Telecom and
Clark Telecom are entitled to all the rights, privileges and benefits
established thereunder, including tax and duty-free importation of capital
equipment and a special income tax rate of 5% of gross income, as defined in
the Act.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On December 22, 2000,
the Philippine Board of Investments, or BOI, approved ePLDT&#146;s registration as a
new information technology service firm in the field of services related to its
internet data center on a pioneer status.  As such, ePLDT enjoys, among other
incentives, a six-year income tax holiday, or ITH, from January 2001.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">On
May 3, 2001, the BOI awarded Smart pioneer status for its expansion projects,
entitling it to a three-year ITH which expired on May 2, 2004.  In 2004 and 2003, tax
incentives utilized amounted to Php2,208 million and Php6,425 million,
respectively.  The tax incentive was utilized by Smart on the basis of
incremental income generated from such expansion projects.  In addition, on July 12, 2001, the
BOI awarded Smart pioneer status for its payment infrastructure projects,
entitling it to enjoy a six-year ITH.  On July 9, 2003,
Smart filed a petition for the cancellation of its BOI Registration No.
2001-102.  On September 14, 2004, the BOI formally approved such request for
cancellation, which resulted in the termination of all incentives granted to
Smart by virtue of its registration.  No tax incentives were utilized by Smart
in 2004 and 2003.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The balance of NOLCO as at December 31, 2004 may be used by
the particular entities that incurred the losses as deductions against future
taxable income.</p>

<p align=right style='text-align:right;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.64%;margin-left:.4pt;border-collapse:collapse;border-collapse:
 collapse !msorm'>
 <tr>
 <td   valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p style=';text-indent:1.0in;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Year Incurred</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:0in;margin-right:.05pt;
 margin-bottom:0in;margin-left:8.9pt;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Expiry Date</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">December 31, 2005</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:31.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,329</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">December 31, 2006</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:31.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2004</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:8.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">December 31, 2007</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:31.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">17</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total NOLCO</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:31.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,350</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
reconciliation between the provision for (benefit from) income tax at the
applicable statutory tax rate and the actual provision for (benefit from)
income tax follows:</p>

<p align=right style='text-align:right;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='margin-left:5.4pt;border-collapse:collapse'>
 <tr>
 <td  valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td  valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td  valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=top style=' border:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:auto' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Provision (benefit) at statutory
 tax rate</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.25pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>11,149</b></p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">3,123</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.1pt;text-align:right' style="margin-top:0;margin-bottom:0">(1,470)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Tax effects of:</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.1pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.1pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:14.2pt;text-indent:-7.1pt' style="margin-top:0;margin-bottom:0">Tax exempt income and non-deductible expenses</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.25pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>3,731</b></p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">2,695</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.1pt;text-align:right' style="margin-top:0;margin-bottom:0">(253)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:14.2pt;text-indent:-7.1pt' style="margin-top:0;margin-bottom:0">Equity in net losses of associates</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.25pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>24</b></p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">28</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">45</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:14.2pt;text-indent:-7.1pt' style="margin-top:0;margin-bottom:0">Results of operations subject to income tax holiday</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(2,205)</b></p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.1pt;text-align:right' style="margin-top:0;margin-bottom:0">(5,975)</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.1pt;text-align:right' style="margin-top:0;margin-bottom:0">(2,405)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:14.2pt;text-indent:-7.1pt' style="margin-top:0;margin-bottom:0">Differences between statutory tax rate and special
 tax rate <br>
 of certain subsidiaries</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(835)</b></p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.1pt;text-align:right' style="margin-top:0;margin-bottom:0">(490)</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.1pt;text-align:right' style="margin-top:0;margin-bottom:0">(117)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:14.2pt;text-indent:-7.1pt' style="margin-top:0;margin-bottom:0">Others - net </p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.25pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>889</b></p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.1pt;text-align:right' style="margin-top:0;margin-bottom:0">(114)</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">174</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Changes in valuation
 allowance</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(5,927)</b></p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.1pt;text-align:right' style="margin-top:0;margin-bottom:0">(667)</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">5,464</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Actual provision for
 (benefit from) income tax</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.25pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>6,826</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.1pt;text-align:right' style="margin-top:0;margin-bottom:0">(1,400)</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:8.25pt;text-align:right' style="margin-top:0;margin-bottom:0">1,438</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div style='border:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 0in 0in'>

<p style='line-height:50%;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

</div>

<p style='punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0"><b>20.    Earnings Per Common Share</b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
following table presents information necessary to calculate the earnings per
share:</p>

<p align=right style='text-align:right;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.26%;margin-left:.4pt;border-collapse:collapse'>

 <tr style='page-break-inside:avoid;height:7.1pt'>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in;height:7.1pt'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:7.1pt'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:7.1pt'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:7.1pt'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Basic</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Diluted</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Basic</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Diluted</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Basic</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Diluted</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=6 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(in millions of pesos, except per share amounts)</p>
 </td>
 </tr>

 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">Net income (loss) before cumulative effect of change
 in accounting policy</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>28,101</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>28,101</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">11,106</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">11,106</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(6,158)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(6,158)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:31.5pt;text-indent:-31.5pt' style="margin-top:0;margin-bottom:0">Cumulative effect of change in accounting policy</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(61)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(61)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p style='margin-left:45.0pt;text-indent:-45.0pt' style="margin-top:0;margin-bottom:0">Dividends on preferred stock</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(1,764)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(285)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,739)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,485)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,645)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,645)</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 10.35pt'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">Accretion to redemption value of Preferred Stock <br>
 Subject to Mandatory Redemption</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 10.35pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(1,503)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 10.35pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(1,503)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 10.35pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,309)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 10.35pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,309)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 10.35pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,004)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 10.35pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,004)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:45.0pt;text-indent:-45.0pt' style="margin-top:0;margin-bottom:0">Net income (loss) attributable to common shareholders</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>24,834</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>26,313</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">7,997</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">8,251</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(8,807)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(8,807)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=6 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(in thousand shares)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:45.0pt;text-indent:-45.0pt' style="margin-top:0;margin-bottom:0">Outstanding common shares, beginning of year</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>169,476</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>169,476</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">169,361</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">169,361</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">168,895</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">168,895</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:45.0pt;text-indent:-45.0pt' style="margin-top:0;margin-bottom:0">Effect of issuance of common shares during the year</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>252</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>252</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">52</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">52</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">200</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">200</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">Weighted average number of shares under ESOP during
 the year</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>155</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">Common shares equivalent of preferred shares deemed
 dilutive:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">      10% Cumulative Convertible Preferred Stock
 (Note 14)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>3,305</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">      Preferred Stock Series III (Note 14)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>7,908</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">      Preferred Stock Series V (Note 14)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,576</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">      Preferred Stock Series VI (Note 14)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,651</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">      Preferred Stock Series VII (Note 14)</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,842</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Weighted average number of common shares for the year</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>169,728</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>181,096</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">169,413</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">180,482</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">169,095</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">169,095</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Earnings per common share before cumulative effect of
 change in accounting policy</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>146.32</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>145.30</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">47.56</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">46.06</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(52.08)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(52.08)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Cumulative effect of change in accounting policy</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(0.36)</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(0.34)</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Earnings per common share</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b> 146.32</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b> 145.30</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">  47.20</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">  45.72</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(52.08)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(52.08)</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Series V, VI and VII Convertible Preferred Stock were
deemed dilutive based on a calculation of the required dividends on these
preferred shares divided by the number of equivalent common shares, assuming
such preferred shares are converted into common shares and compared against the
basic EPS.  Since the amount of dividends on the Series V, VI and VII
Convertible Preferred Stock over its equivalent number of common shares
decreased the basic EPS, these convertible preferred stock were deemed
dilutive.  </p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The computation of diluted earnings per common share
were anti-dilutive for the year ended December 31, 2002; therefore, the amounts
reported for basic and diluted earnings per common share were the same.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="OLE_LINK23"><b>Dividends
Declared For the Years Ended </b></a><b>December 31, 2004</b><b>, 2003 and 2002</b></p>

<p align=right style='margin-left:.25in;text-align:right' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.04%;margin-left:.4pt;border-collapse:collapse;border-collapse:
 collapse !msorm'>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:.05pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:.05pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:.05pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>2002</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Class</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:.05pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Per Share</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:.05pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Total</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:.05pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Per Share</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:.05pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Total</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:.05pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Per Share</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:.05pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Total</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.0pt' style='page-break-inside:
 avoid !msorm;height:3.0pt !msorm'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:3.0pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:3.0pt'>
 <p align=center style='margin-bottom:1.0pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:3.0pt'>
 <p align=center style='margin-bottom:1.0pt;text-align:center' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:3.0pt'>
 <p align=center style='margin-bottom:1.0pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:3.0pt'>
 <p align=center style='margin-bottom:1.0pt;text-align:center' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:3.0pt'>
 <p align=center style='margin-bottom:1.0pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:3.0pt'>
 <p align=center style='margin-bottom:1.0pt;text-align:center' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><b>Preferred Stocks Subject to <br>
 Mandatory Redemption</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Series
 V</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php4.675</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">48</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php4.675</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">48</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php4.675</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">48</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Series
 VI</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">US$0.09925</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">106</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">US$0.09925</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">113</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">US$0.09925</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">106</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Series
 VII</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">JPY10.179725</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">82</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">JPY10.179725</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">93</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">JPY10.179725</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">86</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0"> 236</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0"> 254</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0"><a
 name="OLE_LINK26"></a> 240</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><b>10% Cumulative Convertible <br>
 Preferred Stocks</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Series
 DD</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php1.00</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php1.00</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php1.00</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Series
 CC</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">17</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">17</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Series
 A, I, R, W, AA and BB</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">130</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">130</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">130</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Series
 B, F, Q, V and Z</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">91</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">91</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">91</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Series
 E, K, O and U</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">45</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">45</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">45</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Series
 C, D, J, T and X</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">58</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">58</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">58</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Series
 G, N, P and S</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">27</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">27</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">27</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Series
 H, L, M and Y</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">40</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">40</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">40</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0"> 410</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0"> 408</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0"> 391</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>Convertible Preferred
 Stocks</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Series
 III</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">US$1.029412</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">1,070</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">US$1.029412</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">1,040</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">US$1.029412</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">1,003</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><b>Cumulative Non-Convertible Redeemable Preferred
 Stocks</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Series
 IV*</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">48</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">49</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">49</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Charged
 to retained earnings</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">1,764</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:22.55pt;text-align:right' style="margin-top:0;margin-bottom:0">1,751</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">1,683</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style="margin-top:0;margin-bottom:0"><i>*    </i><i>Dividends are declared based on total amounts, not per
share amounts.</i></p>

<b><i><br
clear=all style='page-break-before:always'>
</i></b>

<p style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style="margin-top:0;margin-bottom:0"><b>Dividends Declared
Subsequent to </b><b>December 31, 2004</b></p>

<p align=right style='margin-left:.25in;text-align:right' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;margin-left:.4pt;border-collapse:collapse;border-collapse:
 collapse !msorm'>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-top:3.0pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Date</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-top:solid windowtext 1.5pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Amounts</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Class</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:.05pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Approved</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:.05pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>of Record</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:.05pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Payable</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:.05pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:.05pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Per Share</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:.05pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Total</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.0pt' style='page-break-inside:
 avoid !msorm;height:3.0pt !msorm'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:3.0pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:3.0pt'>
 <p align=right style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:40.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:3.0pt'>
 <p align=right style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:40.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:3.0pt'>
 <p align=right style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:40.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:3.0pt'>
 <p align=right style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:40.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:3.0pt'>
 <p align=right style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:40.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:3.0pt'>
 <p align=center style='margin-bottom:1.0pt;text-align:center' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">10% Cumulative Convertible Preferred Stock &#150; Series
 DD</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">January 25, 2005</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">February 8, 2005</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">February 28, 2005</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php1.00</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Common Stock</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">March 1, 2005</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">March 31, 2005</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">May 12, 2005</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">14.00</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">2,380</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">May 5, 2005</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">June 3, 2005</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">July 14, 2005</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">21.00</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">3,577</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div style='border:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 0in 0in'>

<p style='line-height:50%;page-break-after:avoid;border:none;
padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
page-break-after:avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">21.    Contractual Obligations and Commercial
Commitments</p>

<p style='margin-left:.25in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Contractual Obligations</i></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table discloses the PLDT Group&#146;s
contractual obligations outstanding as at December 31, 2004:
</p>

<p align=right style='text-align:right;text-indent:.5in;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse'>
 <tr>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-left:6.4pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-left:6.4pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Long-term lease
 obligations</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Unconditional purchase</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-left:6.4pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Other long-term</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-left:6.4pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Year</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Long-term debt</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Operating</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Capital</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>obligations</b><b>(1)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:7.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>obligations</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Total</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=6 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in
 millions of pesos)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2005</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">28,020</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style=';margin-right:
 17.95pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">725</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">673</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:25.8pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,405</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">33,823</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">25,867</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style=';margin-right:
 17.95pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">580</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">379</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:25.8pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,136</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:22.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">27,962</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">29,396</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style=';margin-right:
 17.95pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">439</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">258</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:25.8pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,127</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:22.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">31,220</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2008</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,589</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style=';margin-right:
 17.95pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">373</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:25.8pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,127</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:22.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13,419</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">21,514</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2009</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14,174</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style=';margin-right:
 17.95pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">350</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:25.8pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,126</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,597</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">24,254</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2010 and onwards</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">55,351</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style=';margin-right:
 17.95pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,115</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">443</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:25.8pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,380</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">60,289</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total </p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">159,397</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style=';margin-right:
 17.95pt;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,582</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,766</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:25.8pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,301</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">22,016</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">199,062</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><a name="OLE_LINK19">&nbsp;</a></p>

<p style="margin-top:0;margin-bottom:0"><i>(1)</i><i>    Based on the original Air Time Purchase Agreement
with AIL.</i></p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>Long-term
Debt Obligations</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">For
discussion of our long-term debt obligations<i>,</i> see<i> Note 12 &#150;
Interest-bearing Financial Liabilities.</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Long-term Operating Lease Obligations</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Domestic Fiber Optic Network Submerged Plant Agreement</i>.   As discussed in <i>Note 16 &#150; Related Party
Transactions</i>, PLDT entered into an agreement with NTT World Engineering
Marine Corporation, or NTT WEMC, on July 4, 2000,
for submarine cable repair and other related services in relation to the
maintenance of PLDT&#146;s DFON submerged plant for a period of five years up to July 4, 2005.  This
agreement has been extended up to the end of 2005.  Under this agreement, PLDT
is required to pay NTT WEMC a fixed annual standing charge of US$2 million,
excluding cost for the use of a remotely-operated submersible vehicle at
US$5,000 for every day of use and repair cost computed at US$19,000 per day of
actual repair.  As at December 31, 2004, PLDT&#146;s aggregate remaining obligation under this agreement
was approximately Php69 million.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Digital Passage Service Contracts</i>.   PLDT
has existing Digital Passage Service Contracts with foreign telecommunication
administrations for several dedicated circuits to various destinations for ten
to 25 years expiring at various dates.  As at December 31, 2004, PLDT&#146;s
aggregate remaining obligation under these contracts amounted to approximately
Php30 million.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>License Agreement with Mobius Management Systems (</i><i>Australia</i><i>)
Pty Ltd., or Mobius.  </i>PLDT entered
into a license agreement with Mobius pursuant to which Mobius has granted PLDT
a non-exclusive, non-assignable and non-transferable license for the use of
computer software components.  Under this agreement, Mobius is also required to
provide maintenance services for a period of one year at no additional
maintenance charge.  PLDT may purchase maintenance services upon expiration of
the first year for a fee of 15% of the current published license fee.  As at December 31, 2004,
PLDT&#146;s aggregate remaining obligation under this agreement was approximately
Php45 million.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Other
Long-term Operating Lease Obligations</i>.
The PLDT Group has various long-term lease contracts for periods ranging from
two to ten years covering certain offices, warehouses, cell sites, telecommunication
equipment locations and various office equipment.  In particular, Smart has
lease obligations aggregating Php3,185 million as at December 31, 2004 in respect of
office and cell site rentals with over 2,000 lessors nationwide, PLDT has lease
obligations aggregating Php119 million as at December 31, 2004, and ePLDT has
lease obligations aggregating Php134 million as at December 31, 2004 in respect of
certain office space rentals.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>Long-term
Capital Lease Obligations.</i></p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">For a discussion of our long-term capital lease
obligations, see <i>Note 12 &#150; Interest-bearing Financial Liabilities</i>.</p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>Unconditional
Purchase Obligations</i></p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Air
Time Purchase Agreement with AIL.  </i>As
discussed in <i>Note 16 &#150; Related Party Transactions</i>, PLDT is a party to a
Founder NSP Air Time Purchase Agreement with AIL in March 1997, which was
amended in December 1998, under which PLDT is granted the exclusive right to
sell AIL services in the Philippines.  In exchange, the Air Time Purchase
Agreement states that PLDT has to purchase from AIL a minimum of US$5 million
worth of air time annually over ten years commencing on the date of the
commercial operations of the Garuda I Satellite.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In the event that PT Asia Cellular Satellite&#146;s aggregate billing
revenue is less than US$45 million in any given year, the Air Time Purchase
Agreement states that PLDT has to make supplemental air time purchase payments
not to exceed US$15 million per year during the ten-year term.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
believe that the payment obligations under the Air Time Purchase Agreement exceeded
the economic benefits expected to be received under it as a result of the delay
in the launch of the satellite, unavailability of competitive handsets and
competitions from cellular services, occurrence of a partial satellite loss,
changes in the primary business of AIL and other factors affecting its
business.  Accordingly, we started negotiations with AIL for the revision of
the payment obligations under the Air Time Purchase in 2000.  As a result of
these negotiations, the effective date of the Air Time Purchase Agreement
became January 1, 2002.  In 2002, billings for satellite air time were
reduced to actual air time usage, less amount for marketing assistance to
service providers.</p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">PLDT and the other founder NSPs
are endeavoring to amend the Air Time Purchase Agreement due to the occurrence
of partial satellite loss, changes in the primary business of ACeS and other
events affecting the business.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">In March 2003, PLDT, together
with the other founder NSPs, entered into a Standstill Agreement with AIL
suspending the application and enforcement of the minimum and supplemental air
time payments under the original Air Time Purchase Agreement.  The parties
agreed that AIL shall provide PLDT and the other founder shareholders, with
unlimited use of air time for the year 2003 in exchange for a fixed fee in the
amount of US$3.8 million for PLDT.  Moreover, PLDT is also obliged to purchase
from AIL 13,750 satellite phone units in 2003 at US$395 F.O.B. per unit,
subject to quarterly price adjustments.  The parties to the Standstill
Agreement also agreed to negotiate in good faith and use their best efforts to
reach agreement on a revised Air Time Purchase Agreement before November 15,
2003 that will cover, among other things, the amended minimum and supplemental
air time payment provisions subject to the approval of AIL&#146;s creditors.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">On February 10, 2004, notwithstanding the ongoing
negotiations, AIL advised PLDT of the termination of the Standstill Agreement
and the reinstatement of the terms under the original Air Time Purchase
Agreement effective January 1, 2002 following the lapse of the November 15,
2003 deadline set in the Standstill Agreement for the negotiation of a revised
Air Time Purchase Agreement.  Negotiations are continuing with the relevant
parties towards an amicable settlement of this matter.  See <i>Note 16 &#150;
Related Party Transactions</i> and <i>Note 22 &#150; Provisions and Contingencies </i>for
further details relating to the Air Time Purchase Agreement with AIL.  As at December 31, 2004,
PLDT&#146;s aggregate remaining minimum obligation under the original Air Time
Purchase Agreement was approximately Php11,962 million.  </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>International
Affiliate Agreement with VeriSign, Inc., or VeriSign</i>.   On September
 15, 2000, ePLDT entered into an
agreement with VeriSign for the non-exclusive, non-transferable right and
license to use the VeriSign software, brand and Certification Practice
Statement for the purpose of approving, issuing, suspending or revoking digital
certificates for users of the internet or similar open systems in the Philippines
for a period of seven years.  Under this agreement, ePLDT is required to pay
VeriSign a certain percentage of the revenue derived from the services subject
to minimum annual royalty payments aggregating to US$11 million, which was subsequently
reduced to US$1 million, for the seven-year contract period.  In addition,
ePLDT was required to pay an annual support fee of US$0.5 million during the
first year and US$0.3 million in each year thereafter.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Effective July 1, 2003, VeriSign has agreed to amend
the Agreement and issued Addendum 6 to write-off all past due invoices and
payments owed to VeriSign, which were invoiced or scheduled to be invoiced
under the agreement prior to this Addendum 6.  All royalty payments and annual
support fees due through June 2003 were part of the write-off in the amount of
US$0.8 million.  For contract year 4 (September 2003 to August 2004), the
annual support fee was reduced from US$0.3 million to US$40,000 and
for contract years 5 to 7 (September 2004 to August 2007) from US$0.3 million
to US$0.16 million.  In addition, VeriSign agreed to reduce the affiliate
revenue sharing rates from 50% of suggested retail price to 25% of suggested
retail price for both enterprise and internet products for 12 months starting
July 2003 and negotiable thereafter.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Moreover,
effective July 1, 2004, VeriSign has agreed to amend the Agreement and
issued Addendum 8 as an extension of Addendum 6.  Under this amendment, the
annual support fee for year 5 (September 2004 to August 2005) will remain at
US$40,000 and affiliate revenue sharing rates will remain at 25%.  As at December 31, 2004,
ePLDT&#146;s aggregate remaining minimum obligation under this agreement was
approximately Php18 million pertaining to annual support fee.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Sale</i><i> and Purchase Agreement with </i><i>Meridian</i><i>.
</i>For a discussion of our sale and
purchase agreement with Meridian with a remaining obligation of Php1,561 million as at
December 31, 2004, see <i>Note 9 &#150; Goodwill and Other Intangible Assets</i>.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Other
Unconditional Purchase Obligations.</i>
The PLDT Group has various purchase contracts for periods ranging from two to
three years covering the use of a fraud management system, satellite hub and
remote very small aperture terminal, or VSAT, network systems with an aggregate
remaining obligation of approximately Php321 million.</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>Other
Long-term Obligations</i></p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Mandatory
Conversion and Purchase of Shares</i>.
As discussed in <i>Note 14 &#150; Preferred Stock Subject to Mandatory Redemption</i>,
as at December 31, 2004, PLDT had issued a total of 3 million shares of Series
V Convertible Preferred Stock, 5 million shares of Series VI Convertible
Preferred Stock and 4 million shares of Series VII Convertible Preferred Stock
in exchange for a total of 58 million shares of Series K Class I Convertible Preferred
Stock of Piltel, pursuant to the debt restructuring plan of Piltel adopted in
June 2001.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Each
share of Series V, VI and VII Convertible Preferred Stock is convertible at any
time at the option of the holder into one share PLDT common stock.  On the date
immediately following the seventh anniversary of the issue date of the Series V
and Series VI Convertible Preferred Stocks and on the eighth anniversary of the
issue date of the Series VII Convertible Preferred Stock, the remaining
outstanding shares under these series will be mandatorily converted into shares
of PLDT common stock.  Under a put option exercisable for 30 days, holders of
shares of common stock received on mandatory conversion will be able to require
PLDT to purchase such shares of PLDT common stock for Php1,700 per share,
US$36.132 per share, and JPY4,071.89
per share for Series V, VI and VII PLDT Convertible Preferred Stock,
respectively.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">As at December 31, 2004, 515,818 shares of Series V
Convertible Preferred Stock and 545,122 shares of Series VI Convertible
Preferred Stock had been converted into shares of PLDT common stock.  The
aggregate value of the put option based on outstanding shares as at December
31, 2004 was Php22,016 million, of which Php13,419 million is payable on June
4, 2008 and Php8,597 million on June 4, 2009, if all of the outstanding shares
of Series V, VI and VII PLDT Convertible Preferred Stock were mandatorily
converted and all the underlying shares of common stock were put to PLDT.  The
market value of the underlying shares of common stock was Php14,685 million,
based on the market price of PLDT shares of common stock of Php1,360 per share
as at December 31, 2004.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>Commercial Commitments</i></b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">As at December 31, 2004, our
outstanding commercial commitments, in the form of letters of credit, amounted
to Php1,504 million.  These commitments will expire within one year.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div style='border:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 0in 0in'>

<p style='line-height:50%;page-break-after:avoid;border:none;
padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid;punctuation-wrap:hanging;
text-autospace:ideograph-numeric ideograph-other;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>22.    Provisions and
Contingencies</b></p>

<p style='page-break-after:avoid;punctuation-wrap:hanging;
text-autospace:ideograph-numeric ideograph-other;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

</div>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">We
have made a reasonable estimate of the amount necessary to pay or settle any
contested assessment in the event of an unfavorable judgment against us and
have made the appropriate provisions in our consolidated financial statements
as at December 31, 2004 aggregating Php5,199 million in respect of the
following:</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>NTC supervision and regulation fees, or SRF</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;page-break-after:
avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Since
1976, PLDT has received assessments from NTC for permit, SRF and other charges
pursuant to Section 40 of Commonwealth Act 146, otherwise known as the Public
Service Act.  As at December 31, 2004, PLDT has paid, since 1994, a total amount of
Php1,718 million in SRF, of which Php1,508 million was paid under protest.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">PLDT
is contesting the manner by which these assessments were calculated and the
basis for such calculations.  The case is now with the Supreme Court and upon
the rules and practice of court, stands submitted for decision.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Smart
and Piltel have similarly received assessments from NTC for permit, SRF and
other charges which were paid under protest.  Total payments amounted to Php122
million each in 2004 and 2003.  Moreover, on February 11, 2005, Piltel paid
under protest the amount of Php559 million in respect of NTC fees for the
period from 1992 to 2004.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a
name="OLE_LINK17"><i>Local business and
franchise tax assessments</i></a></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">PLDT is presently a party to several cases involving
the issue of exemption of PLDT from local franchise and business taxes.  PLDT
believes, based on the opinion of its legal counsel, that it is exempt from
payment of local franchise and business taxes. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
Local Government Code of 1991, or R.A. No. 7160, which took effect on January 1, 1992,
extended to local government units, or LGUs, the power to tax businesses within
their territorial jurisdiction granted under Batas Pambansa No. 337 and
withdrew tax exemptions previously granted to franchise grantees under Section
12 of R.A. No. 7082. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">PLDT
believes, based on the opinion of its legal counsel, that R.A. No. 7925, which
took effect on March 16, 1995, and the grant of similar local franchise and
business taxes exemption privileges to other franchise holders subsequent to
the effectivity of R.A. No. 7160, implicitly restored its local franchise and
business taxes exemption privilege under Section 12 of R.A. No. 7082, or the
PLDT Franchise pursuant to Section 23 thereof, or the equality of treatment
clause. </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">To
confirm this position, PLDT sought and obtained on June 2, 1998 a ruling from the
Bureau of Local Government Finance, or BLGF, of the Philippine Department of
Finance, which ruled that PLDT is exempt from the payment of local franchise
and business taxes imposable by LGUs under R.A. No. 7160.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">By
virtue of the BLGF Ruling, PLDT stopped paying local franchise and business
taxes starting with the fourth quarter of 1998 and has filed with certain LGUs
claims for tax refund covering the period from the second quarter of 1995 to
the third quarter of 1998.  PLDT has received assessments for local franchise
and business taxes from several cities and provinces following PLDT&#146;s decision
to stop payment of local franchise and business taxes.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Following a decision of the
Supreme Court on March 25, 2003, a judgment in the amount of Php4 million against
PLDT involving the City of Davao became final and executory on April 9, 2003,
pursuant to which PLDT was declared not exempt from the local franchise tax.
Although PLDT believes that it is not liable to pay local franchise and
business taxes, PLDT has entered into compromise settlements with several LGUs
in order to maintain and preserve its good standing and relationship with these
LGUs.  Under these compromise settlements, which have been approved by the relevant
courts, PLDT has paid a total amount of Php329 million as at December 31, 2004
in full payment for local franchise tax covering up to the end of 2003.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">PLDT
continues to contest the remaining assessments amounting to approximately
Php3.7 million as at December 31, 2004, a number of which were based on the gross revenues
of PLDT derived from its operations within the entire Philippines.
PLDT claims that assuming that it is liable for local franchise tax, R.A. No.
7160 provides that local franchise tax shall be based on the gross receipts of
the preceding year received or collected for services rendered within the
jurisdiction of the taxing authority.  Therefore, the use by some LGUs of gross
revenues as the basis for computation of franchise tax is in gross violation of
the law because it pertains to all income earned regardless of whether it was
received or not, unlike gross receipts which are essentially the amount of
money or its equivalent actually or constructively received.  Moreover, gross
revenues refer to all income earned by PLDT within and outside the jurisdiction
of the local taxing authority; thus, the use thereof as a basis of computation
will exceptionally overstate the franchise tax.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In a
petition recently filed with the Supreme Court involving another LGU, PLDT has
appealed to the Supreme Court for a re-examination of its decision in the City
of Davao case in light of the strong dissenting opinion in that case concurred
in by four other Justices of the Supreme Court.  PLDT currently expects that
going forward it will pay local franchise and business taxes on an annual basis
and based on the gross receipts received or collected for services rendered
within the jurisdiction of the respective taxing authority.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Smart
has, likewise, received assessments for local franchise and business taxes from
certain cities and provinces in the aggregate amount of Php313 million, which
Smart continues to contest.  Smart believes, based on the opinion of its legal
counsel, that Smart is not liable to pay the local franchise and business taxes
by virtue of (i) the opinion issued by the BLGF dated August 13, 1998; and (ii)
Smart&#146;s exemption under its legislative franchise which took effect after the
effective date of R.A. No. 7160.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Smart has recently been declared
exempt from payment of local franchise tax to the City of Makati in a
decision dated August 3, 2004 by the Regional Trial Court of Makati.  The City of Makati has
filed their motion for reconsideration and Smart has filed its opposition to
that motion for reconsideration.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Piltel
also received assessments from the local government of the City of Makati in the
aggregate amount of Php45 million covering the period from 1999 to 2001.
Piltel has formally protested the assessments, based on: (1) Piltel&#146;s belief
that the opinion rendered by the BLGF for Smart should likewise hold true for
Piltel; and (2) the effective date of the legislative franchise of Piltel (R.A.
No. 7293) which came after the effectivity of R.A. No. 7160.  The franchise tax
prescribed under Section 137 of the Local Government Code is deemed part of the
Piltel franchise (the later law) which states, among other things, that Piltel
shall pay only a franchise tax equivalent to 3% of all gross annual receipts of
the business transacted under its franchise and such percentage shall be in
lieu of all taxes on the franchise or earnings thereof.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Piltel&#146;s protest of the
assessments was denied by the City of Makati on December 18,
 2001.  Piltel then filed a petition with
the Makati Regional Trial Court, or RTC, appealing the local franchise business
taxes.  On December 10, 2002, the Makati RTC rendered its judgment granting
Piltel&#146;s petition and enjoining the City of Makati from assessing and collecting any further annual
local franchise business taxes from Piltel.  The City of Makati filed
its motion for reconsideration of this judgment with the Makati RTC, which was
subsequently denied.  On April 1, 2003, the City of Makati filed a Petition for Review with the Court of
Appeals.  On July 12, 2004, the Court of Appeals rendered a decision upholding
the Makati RTC that Piltel is exempt from payment of the local franchise tax.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
City of Makati appealed to the Supreme Court, which issued a
resolution dated October 13, 2004 denying with finality the appeal of the City of Makati on the
grounds of technicality.  The Supreme Court ruled, however, that the petition
failed to sufficiently show that the Court of Appeals committed any reversible
error in the questioned judgment to warrant the exercise of the discretionary
appellate jurisdiction of the Supreme Court.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Piltel&#146;s Bureau of Internal Revenue, or BIR,
Assessment</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">In 2003, the BIR issued final assessment notices, or
FANs, against Piltel for deficiency taxes and penalties for taxable years 1998
and 1999, in the amounts of Php233.6 million and Php284.2 million,
respectively.  Piltel filed protest letters dated June 5, 2003 and September 24, 2003
with the BIR for the 1998 and the 1999 deficiency tax assessments,
respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">With
respect to the 1998 deficiency tax assessment, the BIR denied on March 16, 2003 the administrative protest filed by Piltel.  On July 1, 2003, however,
Piltel filed with the BIR an application for compromise settlement for the 1998
deficiency tax assessments based on BIR Revenue Regulations, or RR, No. 30-2002
issued on December 16, 2002, which implements Sections 7(c), 204(a) and 290 of
the National Internal Revenue Code of 1997 on compromise settlement of internal
revenue tax liabilities, superseding RR Nos. 6-2000 and 7-2001.  Under said RR
30-2002, Piltel is allowed to apply for compromise settlement on the basis of
financial incapacity.  If approved, Piltel would be permitted to settle its
1998 deficiency tax liabilities by paying an amount corresponding to the
compromise rates ranging from 10% to 40% of its assessed deficiency taxes for
1998.  Meanwhile, with respect to the 1999 deficiency tax assessment, the BIR
favorably considered the administrative protest filed by Piltel.  Accordingly,
the BIR issued a revised FAN dated February 17, 2004, which was received by
Piltel on March 22, 2004.  Hence, as early as December 31, 2003, Piltel paid
and settled the 1999 expanded withholding tax assessment and the revised 1999
fringe benefit tax, or FBT, assessment amounting to Php26.1 million and Php5.6
million, respectively.  On May 28, 2004, Piltel also filed with the BIR an
application for compromise settlement for the 1999 deficiency tax assessments,
particularly the value added tax, or VAT, and income tax assessments, similarly
based on RR No. 30-2002 on the grounds of financial incapacity.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Moreover, on August 5, 2004,
Piltel received a Preliminary Assessment Notice, or PAN, dated <br>
July 19, 2004 in connection with Letter Notice, or LN,
BOC-AID/LTS-1-41-01-02.  The said LN, which is similar to a tax assessment
notice, indicated a discrepancy between the importation date per Bureau of
Customs, or BOC, data and the importation per 2001 VAT returns amounting to
Php175.5 million, which resulted in VAT and income tax deficiency assessments
amounting to Php82.4 million and Php26.5 million, respectively.  On August 20, 2004,
Piltel filed an administrative protest in connection with the assessments.  A
supplemental protest letter was also filed last October 5, 2004 to further
support its position against the said tax assessments after the informal
conference held with the examiners last September 21, 2004.  To date, Piltel
has not received any response from the BIR.  Piltel intends to apply for
compromise settlement, based on the same grounds of financial incapacity, in
respect of any resulting deficiency tax arising from this LN once the BIR has
finalized the assessment.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>Air
Time Purchase Agreement with AIL</i></p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
March 1997, PLDT entered into a Founder NSP Air Time Purchase Agreement with PT
Asia Cellular Satellite, as amended in December 1998 and as assigned and
transferred to AIL, under which PLDT was granted the exclusive right to sell
ACeS services in the Philippines.  See <i>Note 16 &#150; Related Party Transactions</i> and
<i>Note 21 &#150; Contractual Obligations and Commercial Commitments</i> for a
detailed discussion of the terms of the agreement.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In the event that PT Asia Cellular Satellite&#146;s aggregate billing
revenue is less than US$45 million in any given year, the Air Time Purchase
Agreement states that PLDT has to make supplemental air time purchase payments
not to exceed US$15 million per year during the ten-year term.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
believe that the payment obligations under the Air Time Purchase Agreement
exceeded the economic benefits expected to be received under it as a result of
the delay in the launch of the satellite, unavailability of competitive
handsets and competitions from cellular services, occurrence of a partial
satellite loss, changes in the primary business of AIL and other factors
affecting its business.  Accordingly, we started negotiations with AIL for the
revision of the payment obligations under the Air Time Purchase in 2000.  As a
result of these negotiations, the effective date of the Air Time Purchase
Agreement became January 1, 2002.  In 2002, billings for satellite air time were
reduced to actual air time usage, less amount for marketing assistance to
service providers.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">PLDT
and the other founder NSPs are endeavoring to amend the Air Time Purchase
Agreement due to the occurrence of partial satellite loss, changes in the
primary business of ACeS and other events affecting the business.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
March 2003, PLDT, together with the other founder NSPs, entered into a
Standstill Agreement with AIL suspending the application and enforcement of the
minimum and supplemental air time payments under the original Air Time Purchase
Agreement.  The parties agreed that AIL shall provide PLDT and the other
founder shareholders, with unlimited use of air time for the year 2003 in
exchange for a fixed fee in the amount of US$3.8 million for PLDT.  Moreover,
PLDT is also obliged to purchase from AIL 13,750 satellite phone units in 2003
at US$395 F.O.B. per unit, subject to quarterly price adjustments.  The parties
to the Standstill Agreement also agreed to negotiate in good faith and use
their best efforts to reach an agreement on a revised Air Time Purchase
Agreement before November 15, 2003 that will cover, among other things, the
amended minimum and supplemental air time payment provisions subject to the
approval of AIL&#146;s creditors.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">On
February 10, 2004, notwithstanding the ongoing negotiations, AIL advised PLDT
of the termination of the Standstill Agreement and the reinstatement of the
terms under the original Air Time Purchase Agreement effective January 1, 2002
following the lapse of the November 15, 2003 deadline set in the Standstill
Agreement for the negotiation of a revised Air Time Purchase Agreement.  As at December 31, 2004,
PLDT&#146;s outstanding payables under the original Air Time Purchase Agreement was
approximately Php2,954 million.  Negotiations are continuing with the relevant
parties towards an amicable settlement of this matter.  See <i>Note 16 &#150;
Related Party Transactions</i> and <i>Note 21 &#150; Contractual Obligations and
Commercial Commitments</i> for further discussion.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">On June 21, 2004, AIL also sent
PLDT a letter citing PLDT in default under the Air Time Purchase Agreement for
non-payment of outstanding amounts and for repudiation of its obligations
thereunder.  PLDT maintains, however, that the termination of the Standstill
Agreement and reinstatement of the terms under the original Air Time Purchase
Agreement are premature, considering that the discussions or negotiations on
the terms of the proposed revised Air Time Purchase Agreement were still
pending between the parties, such that it is highly inequitable for AIL to have
unilaterally decided to invoke the provisions of the Standstill Agreement and
declared PLDT in default.  Furthermore, PLDT maintains its position that the
Air Time Purchase Agreement has been rendered ineffective by various events,
circumstances and technical problems encountered in the operation of the
business of AIL.  The substantial changes in the circumstances under which AIL
must operate, changes which were not contemplated by the parties at the time
the commitments were made, have rendered the commitments under the Air Time
Purchase Agreement unrealistic and the performance of the same impossible.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>PLDT&#146;s
LOS to Piltel</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Under
the terms of Piltel&#146;s debt restructuring plan, PLDT issued a LOS for the
benefit of Piltel and its creditors under which PLDT has agreed to cover any
funding shortfalls of Piltel up to a maximum amount of US$150 million less all
amounts paid or committed to be paid to or on behalf of Piltel or any of its
subsidiaries or affiliates on or after March 23, 2000.  Under the LOS, PLDT is
required to provide funding to Piltel in the event that the cash flow from
Piltel&#146;s operations falls short of the amount required by it to discharge in
full its obligations to any creditor of Piltel and all its operating and
financing subsidiaries and affiliates.  PLDT is subject to contractual
restrictions limiting the amount of financial support it can provide to Piltel
up to US$150 million.  As at December 31, 2004 and 2003, the remaining undrawn
balance available under the PLDT LOS was US$50 million, approximately Php2,831
million (2004) and Php2,793 million (2003) due to prior investments made from
March 23, 2000 to December 31, 2004 aggregating to US$100 million through
PLDT&#146;s subscription to Series J Class I preferred shares of Piltel.  There was
no drawdown under the LOS in 2004 and 2003.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div style='border:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 0in 0in'>

<p style='line-height:50%;border:none;padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0"><b>23.    Financial Assets and
Liabilities</b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Our financial assets and
liabilities are recognized initially at cost, which is the fair value of the
consideration given (in the case of asset) or received (in the case of a
liability).  Transaction costs (debt issuance costs) are included in the
initial measurement of all financial assets and liabilities except for
financial instruments measured at fair value through profit and loss.
Subsequent to initial recognition, assets and liabilities are either valued at
amortized cost using the effective interest rate method or at fair value
depending on classification.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table sets forth the carrying values and
estimated fair values of our financial assets and liabilities recognized as at December 31, 2004 and 2003.  There are no material unrecognized financial assets and
liabilities as at December 31, 2004 and 2003.</p>

<p align=right style='text-align:right;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.12%;margin-left:.4pt;border-collapse:collapse;border-collapse:
 collapse !msorm'>

 <tr style='page-break-inside:avoid;height:11.55pt' style='page-break-inside:
 avoid !msorm;height:11.55pt !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:11.55pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:11.55pt'>
 <p align=center style='margin-left:40.55pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Carrying Value</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:11.55pt'>
 <p align=center style='margin-left:40.55pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Fair Value</b></p>
 </td>
 </tr>
 <tr style='height:11.65pt' style='height:11.65pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:11.65pt'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:11.65pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:11.65pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:11.65pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:11.65pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.5pt' style='page-break-inside:
 avoid !msorm;height:11.5pt !msorm'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:11.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=4 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:11.5pt'>
 <p align=center style='margin-left:45.05pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in millions of
 pesos)</p>
 </td>
 </tr>

 <tr style='height:.2in' style='height:.2in !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:.2in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Current Financial Assets</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:.2in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:.2in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:.2in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:.2in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cash and cash equivalents</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>27,321</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">19,372</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>27,321</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">19,372</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Short-term investments</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>3,873</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,661</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>3,873</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,661</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Trade and other receivables</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>10,404</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">17,087</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>10,404</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">17,087</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Derivative assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>335</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">262</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>335</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">262</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total current financial assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>41,933</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">38,382</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>41,933</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">38,382</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Noncurrent Financial Assets</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Investments - available-for-sale</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>104</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">118</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>104</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">118</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Derivative assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4,116</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,361</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4,116</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,361</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total noncurrent financial assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4,220</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,479</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4,220</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,479</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Total Financial Assets</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>46,153</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">39,861</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>46,153</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">39,861</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:13.45pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Current Financial Liabilities</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Obligations under capital lease*</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>425</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">295</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>425</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">295</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Notes payable*</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>58</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,133</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>58</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,133</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Accounts payable</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>7,029</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,977</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>7,029</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,977</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Derivative liabilities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>473</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">91</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>473</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">91</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Current portion of long-term debt*</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>28,020</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">23,810</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>28,159</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">24,611</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Dividends payable</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>652</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">577</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>652</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">577</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total current financial liabilities</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>36,657</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">32,883</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>36,796</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">33,684</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Noncurrent Financial Liabilities</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Long-term debt &#150; net of current portion*</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>131,377</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">160,464</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>129,359</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">158,149</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Obligations under capital lease*</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>601</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">729</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>601</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">729</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Derivative liabilities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>6,930</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,737</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>6,930</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,737</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Preferred stock subject to mandatory
 redemption</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>14,956</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13,321</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>18,237</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16,086</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total noncurrent financial liabilities</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>153,864</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">178,251</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>155,127</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">178,701</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Total Financial Liabilities</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>190,521</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">211,134</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>191,923</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">212,385</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i>*        </i><i>Included under &#147;Interest-bearing Financial Liabilities&#148;
in the consolidated balance sheets.</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following methods and assumptions were used to
estimate the fair value of each class of financial instrument for which it is
practicable to estimate such value:</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Interest-bearing Financial Liabilities:</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Long-term debt:</i>
Fair value is based on the following:</p>

<p align=right style='text-align:right;text-indent:.5in;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=1 cellspacing=0 cellpadding=0
 style='width:100.54%;margin-left:.4pt;border-collapse:collapse;border:none'>
 <tr>
 <td   valign=bottom style=' border:solid windowtext 1.0pt;
 border-top:solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Debt Type</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Fair Value Assumptions</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' border:solid windowtext 1.0pt;
 border-top:none;padding:0in 0in 0in 0in'>
 <p style='margin-left:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Fixed Rate Loans:</p>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">U.S. dollar notes/convertible debt</p>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Other loans in all other currencies</p>
 </td>
 <td   valign=top style=' border-top:none;border-left:
 none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 <p style='margin-left:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Quoted market price.</p>
 <p style='margin-left:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Estimated fair value is based on the discounted
 value of future cash flows using the applicable rates for similar types of
 loans.</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' border:solid windowtext 1.0pt;
 border-top:none;padding:0in 0in 0in 0in'>
 <p style='margin-left:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Variable Rate Loans</p>
 </td>
 <td   valign=top style=' border-top:none;border-left:
 none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The carrying value approximates fair value because
 of recent and regular repricing based on market conditions.</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Preferred
stock subject to mandatory redemption:</i>
The fair values were determined using an independent third party valuation
model.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Derivative instruments:</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Forward
foreign exchange contracts and bifurcated foreign currency forwards:</i> The fair values were determined using forward exchange
market rates at the balance sheet date.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Foreign
currency options:</i>  The fair values
were computed using an option pricing model.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Foreign
currency and interest rate swaps:</i>
The fair values were computed as the present value of estimated future cash
flows.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Bifurcated
equity call options:</i>  The fair values
were computed using an option pricing model.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Due
to the short-term nature of the transactions, the fair value of cash and cash
equivalents, short-term investments, trade and other receivables, notes payable
and accounts payable approximate the amount of consideration at the time of
initial recognition.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Derivative Financial Instruments</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our
derivative financial instruments are accounted for under non-hedge accounting.
Changes in the fair value of these instruments are recognized directly to
income for the period.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The table below sets out the
information about our derivative financial instruments as at December 31, 2004 and
2003:</p>

<p align=right style='text-align:right;text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:99.22%;margin-left:.4pt;border-collapse:collapse'>

 <tr style='page-break-inside:avoid;height:10.2pt'>
 <td   colspan=2 valign=bottom style=' border:none;
 border-top:solid windowtext 1.5pt;padding:0in 0in 0in 0in;height:10.2pt'>
 <p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:10.2pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:10.2pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 <p style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style=';
 margin-top:0in;margin-right:.1pt;margin-bottom:0in;margin-left:.4pt;
 margin-bottom:.0001pt;text-align:center;text-indent:-.4pt' style="margin-top:0;margin-bottom:0"><b>Maturity</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-left:6.4pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Notional Amount</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Mark-to-market Gain (Loss)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-left:6.4pt;text-align:center' style="margin-top:0;margin-bottom:0">Notional Amount</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-left:6.4pt;text-align:center' style="margin-top:0;margin-bottom:0">Mark-to-market Gain (Loss)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=4 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b><i>PLDT</i></b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Long-term currency swaps</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style=';margin-right:
 22.5pt;text-align:right' style="margin-top:0;margin-bottom:0">2017</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>US$300</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Php748</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">US$300</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php687</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.1pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style=';margin-right:
 22.5pt;text-align:right' style="margin-top:0;margin-bottom:0">2012</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>250</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>282</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">250</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">563</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style=';margin-right:
 15.85pt;text-align:right' style="margin-top:0;margin-bottom:0">2009(1)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">175</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">110</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Long-term
 foreign currency bought call options</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style=';margin-right:
 22.5pt;text-align:right' style="margin-top:0;margin-bottom:0">2009</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>175</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>672</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Short-term
 foreign currency bought call options</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>76</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(198)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Long-term
 foreign currency sold call options</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>175</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(22)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Short-term
 foreign currency sold call options</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>76</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>117</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">79</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">247</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Interest
 rate swap</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>125</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(3,468)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">125</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(2,587)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Forward
 foreign exchange contracts</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>87</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>6</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">125</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(11)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>JPY14</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Bifurcated
 embedded derivatives</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>US$1</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(1)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(12)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Bifurcated
 equity call options</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(1,026)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,145)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(2,889)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(2,148)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b><i>Smart</i></b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Forward
 foreign exchange contracts</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>US$69</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(77)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">US$42</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(82)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Bifurcated
 embedded derivatives</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>19</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>14</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">48</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">25</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-indent:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(63)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(57)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Net
 liabilities</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(Php2,952)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(Php2,205)</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style="margin-top:0;margin-bottom:0"><i>(1)</i><i>    Re-classified as long-term currency options
starting </i><i>July 1, 2004</i><i>.</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:99.0%;margin-left:.4pt;border-collapse:collapse;border-collapse:
 collapse !msorm'>

 <tr>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-top:solid windowtext 1.5pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.0pt' style='page-break-inside:
 avoid !msorm;height:8.0pt !msorm'>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-top:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm;height:8.0pt'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:8.0pt'>
 <p align=right style='text-align:right;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>

 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Presented as:</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Current assets</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>335</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">262</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Noncurrent assets</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4,116</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,361</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Current liabilities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(473)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(91)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Noncurrent liabilities</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(6,930) </b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(3,737)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net liabilities</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(2,952)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2,205)</p>
 </td>
 </tr>
</table></center></div>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Analysis of gain (loss) on derivative transactions for
the years ended December
 31, 2004, 2003 and
2002 are as follows:</p>

<p align=right style='margin-left:.25in;text-align:right;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:99.26%;margin-left:.4pt;border-collapse:collapse;border-collapse:
 collapse !msorm'>

 <tr>
 <td   valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.0pt' style='page-break-inside:
 avoid !msorm;height:8.0pt !msorm'>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:8.0pt'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:8.0pt'>
 <p align=center style='margin-left:40.5pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in millions of
 pesos)</p>
 </td>
 </tr>

 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net mark-to-market loss &#150; end of year</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(2,952)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2,205)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(637)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net mark-to-market loss &#150; beginning of year</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(2,205) </b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(637)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(911)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net change</p>
 </td>
 <td   valign=top style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(747)</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,568)</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 274</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Gain (loss) on contracts entered into and terminated
 during the year</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>211</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(63)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(360)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(</b><b>292)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Gain on terminated interest swap agreement</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">633</p>
 </td>
 </tr>
 <tr style='height:3.5pt' style='height:3.5pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net gain (loss) on derivative transactions</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(828)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(1,631)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 547</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>PLDT</i></b></p>

<p style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Long-term
Currency Swaps</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">PLDT
entered into long-term principal-only currency swap agreements with various
foreign counterparties intended as economic hedges of the currency risk on its
fixed rate notes maturing in 2009, 2012 and 2017.  As at December 31, 2004,
2003 and 2002, these long-term currency swaps have an aggregate notional amount
of US$550 million, US$725 million and US$550 million, respectively.  Under
these long-term currency swaps, PLDT effectively exchanges the principal of its
U.S. dollar-denominated fixed rate notes into peso-denominated loan exposures
at agreed swap exchange rates.  The agreed swap exchange rates are reset to the
lowest U.S. dollar/Philippine Peso spot exchange rate during the term of the
swaps, subject to a minimum exchange rate.  In March and April 2004, PLDT entered
into amendments to keep the lowest reset exchange rate and unwind the downward
resettable feature of US$550 million of its long-term principal-only currency
swap agreements in order to lower the running hedging cost of the swaps.  As at
December 31, 2004, 2003 and 2002, the outstanding swap contracts have
an average exchange rate of Php50.76, Php51.22 and Php51.27, respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">In
order to manage hedge costs, these swaps included a credit-linkage feature with
PLDT as the reference entity.  The specified credit events include bankruptcy,
failure to pay, obligation acceleration, moratorium/repudiation, and
restructuring of PLDT bonds or all or substantially all of PLDT&#146;s obligations.
Upon the occurrence of any of these credit events, subject to applicable agreed
threshold amounts, the obligations to both PLDT and its counterparty under the
swap contracts terminate without further settlements to either party, including
any mark-to-market value of the swaps.  In March 2004, PLDT amended an
additional US$150 million of the long-term currency swaps to include this
credit-linkage feature.  As at December 31, 2004, 2003 and 2002, US$725
million, US$575 million and US$400 million of PLDT&#146;s long-term currency
swaps/options, respectively, had been structured to include credit-linkage with
PLDT as the reference entity.  The semi-annual fixed or floating swap cost
payments that PLDT is required to make to its counterparties averaged to about
2.95%, 2.10% and 2.35% per annum as at December 31, 2004, 2003 and 2002, respectively.
Any movements in the fair value of these instruments will be taken to income
for the period.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Long-term
Foreign Currency Bought Call Options</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">To
manage hedging costs, the currency swap agreement relating to the 2009 fixed
rate notes has been structured to include currency option contracts.  If the
Philippine Peso to U.S. dollar spot exchange rate on the maturity date settles
beyond Php90.00 to US$1.00, PLDT will have to purchase U.S. dollars at an
exchange rate of Php52.50 to US$1.00 in addition to the excess above the agreed
threshold rate.  On the other hand, if on maturity, the Philippine Peso to
US$1.00 spot exchange rate is lower than the exchange rate of Php52.50 to
US$1.00, PLDT will have the option to purchase U.S. dollars at the prevailing
Philippine Peso to U.S. dollar spot exchange rate.  In July 2004, PLDT and its
counterparty agreed to re-document and re-classify the transaction into
long-term currency option contracts.  The net semi-annual floating hedge cost
payments that PLDT is required to pay under these transactions was
approximately 3.94% and 2.30% per annum as at December 31, 2004 and 2003,
respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
option currency contract relating to PLDT&#146;s option to purchase U.S. dollar at
Php52.50 to US$1.00 or the prevailing spot rate at maturity, whichever is
lower, is entered into in tandem with an option currency contract relating to
the counterparty&#146;s option to purchase foreign currency from PLDT at Php90.00 to
US$1.00.  See discussion below under &#150; <i>Long-term Foreign Currency Sold Call
Options</i>.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Short-term Foreign Currency Bought Call Options</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">PLDT utilized structures incorporating currency option
contracts to hedge the maturing principal on its fixed rate notes due June 2004
and June 2005.  Under the terms of the contracts, PLDT will have the option to
purchase U.S. dollars at an agreed Philippine Peso to U.S. dollar spot exchange
rate or the prevailing spot rate at maturity, whichever is lower.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Long-term
Foreign Currency Sold Call Options</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">With reference to the
above-mentioned hedge on the PLDT&#146;s 2009 fixed rate notes, PLDT simultaneously
sold a currency option contract with the same notional amount of US$175 million
with the same maturity that gives the counterparty a right to purchase foreign
currency at Php90.00 to US$1.00.  Together with the bought call long-term
currency option contract.  PLDT has the obligation to purchase U.S. dollars at
an exchange rate of Php52.50 to US$1.00 in addition to the excess above the
agreed threshold rate.  In exchange for this condition, the overall net hedging
cost for the transaction is reduced.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Short-term Foreign Currency Sold Call Options</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">In order to manage hedge costs, currency option
contracts that hedge PLDT&#146;s fixed rate notes due June 2004 and June 2005 have
features similar to those of the long-term currency option contracts.  PLDT
simultaneously sold currency option contracts with the same notional amounts
and the same maturity.  Together with the bought call other short term currency
option contracts.  PLDT has the obligation to buy U.S. dollars at the agreed
strike price in addition to the excess above the agreed threshold rate should
the Philippine Peso to U.S. dollar spot exchange rate on the maturity date
settle beyond that agreed threshold.  In exchange for this condition, the
overall net hedging cost for the transactions is reduced.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style="margin-top:0;margin-bottom:0">PLDT also entered into short-term
U.S. dollar subsidized forward contracts and Japanese yen currency option
contracts to hedge other short-term foreign currency obligations.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Interest
Rate Swap</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">A
portion of PLDT&#146;s currency swap agreements to hedge its 2017 fixed rate notes
carry fixed rate swap cost payments.  To effectively lower the running cost of
such swap agreements, PLDT, in April 2003, entered into an agreement to swap
the coupon on US$125 million of its 2012 fixed rate notes into a floating rate
Japanese yen amount.  Under this agreement, PLDT is entitled to receive a fixed
coupon rate of 11.375%, provided the Japanese yen to U.S. dollar exchange rate
stays above JP&yen;99.90 to US$1.00.  Below this level, a reduced fixed coupon rate
of 3% will be due to PLDT.  In order to mitigate the risk of the Japanese yen
strengthening below the agreed threshold, PLDT, in December 2003, entered into
an overlay swap transaction to effectively lower the portion of the coupon
indexed to the U.S. dollar to Japanese yen rate to 3%.  Both swap agreements
include a credit-linkage feature with PLDT as the reference entity.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Forward Foreign Exchange Contracts</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">PLDT entered into short-term U.S. dollar and Japanese
yen forward foreign exchange contracts to hedge short-term foreign currency
obligations.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Bifurcated Embedded Derivatives</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Derivative instruments include derivatives (or
derivative-like provisions) embedded in non-derivative contracts.  PLDT&#146;s
outstanding bifurcated embedded derivative transactions cover service contracts
denominated in U.S. dollars to be paid out to a Japanese company.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Bifurcated Equity Call Options</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Pursuant to Piltel&#146;s debt restructuring plan, PLDT
issued its Series VI and VII Convertible Preferred Stock, see <i>Note 14 &#150;
Preferred Stock Subject to Mandatory Redemption</i>.  Each share of Series VI
and VII Convertible Preferred Stock is convertible at any time at the option of
the holder into one share of PLDT&#146;s common stock.  On the date immediately
following the seventh anniversary of the issue date of the Series VI
Convertible Preferred Stock and on the eighth anniversary of the issue date of
the Series VII Convertible Preferred Stock, the remaining outstanding shares
under these series will be mandatorily converted into shares of PLDT common
stock.  For 30 days thereafter, the holders of these mandatorily converted
shares of common stock have the option to sell such shares of common stock back
to PLDT for US$36.132 per share and JPY4,071.89
per share for Series VI and VII, respectively.  As at December 31, 2004 and
2003, the net negative mark-to-market value of these embedded call options
amounted to Php1,027 million and Php1,145 million, respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>Smart</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Smart
uses forward exchange contracts to hedge foreign currency-denominated assets,
liabilities and firm commitments.  These forward contracts have maturities
ranging from one to six months.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Cash
deposits, presented as prepayment for forward purchase contract under
&#147;Short-term investment&#148;, amounting to Php3,873 million and Php1,661 million
collateralize certain of the forward exchange contracts outstanding as at
December 31, 2004 and 2003, respectively.  The embedded foreign currency
derivatives bifurcated from these prepaid forwards are presented as derivative
assets or derivative liabilities.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Smart&#146;s other embedded
derivatives were bifurcated from service and purchase contracts.  As at December 31, 2004 and
2003, outstanding contracts included a service contract with a foreign
equipment supplier and various suppliers covering handset importations payable
in U.S. dollars.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Financial Risk Management Objectives and Policies</b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The main purpose of our financial instruments is to
fund our operations.  We also enter into derivative transactions, the purpose
of which is to manage the currency risks and interest rate risks arising from
our operations and our sources of financing.  It is, and has been throughout
the year under review, our policy that no trading in financial instruments
shall be undertaken.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
main risks arising from our financial instruments are liquidity risk, foreign
currency risk, interest rate risk and credit risk.  Our Board of Directors
reviews and agrees to policies for managing each of these risks.  Our policies
for managing these risks are summarized below.  We also monitor the market
price risk arising from all financial instruments.  Our accounting policies in
relation to derivatives are set out in <i>Note 3 &#150; Summary of Significant
Accounting Policies and Practices</i>.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>Liquidity Risk</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
seek to manage our liquidity profile to be able to finance our capital
expenditures and service our maturing debts.  To cover our financing
requirements, we intend to use internally generated funds and proceeds from
debt and equity issues and sales of certain assets. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As
part of our liquidity risk management program, we regularly evaluate our
projected and actual cash flow information and continuously assess conditions
in the financial markets for opportunities to pursue fund-raising initiatives.
These initiatives may include bank loans, export credit agency-guaranteed
facilities, and debt capital and equity market issues.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Foreign Currency Risk</i></b></p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The
following table shows our consolidated foreign currency-denominated monetary
assets and liabilities and their peso equivalents as at December 31, 2004 and
2003:</p>

<p align=right style='margin-left:.25in;text-align:right;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:97.38%;margin-left:.4pt;border-collapse:collapse;border-collapse:
 collapse !msorm'>

 <tr style='page-break-inside:avoid;height:8.85pt' style='page-break-inside:
 avoid !msorm;height:8.85pt !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:8.85pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:8.85pt'>
 <p style="margin-top:0;margin-bottom:0">2004</p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:8.85pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:15.35pt' style='page-break-inside:
 avoid !msorm;height:15.35pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:15.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:15.35pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>U.S. Dollar</b><b>(1)</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:15.35pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Php Equivalent</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:15.35pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">U.S. Dollar(2)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:15.35pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Php Equivalent</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.5pt' style='page-break-inside:
 avoid !msorm;height:11.5pt !msorm'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:11.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=4 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:11.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>

 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Current Financial Assets</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cash and cash equivalents</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>US$251</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Php14,142</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$146</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php8,116</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Short-term investments</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>69</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>3,888</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">30</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,668</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Trade and other receivables</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>146</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>8,226</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">195</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,839</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Derivative assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>6</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>335</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">262</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total current financial assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b> 472</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>26,591</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 376</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">20,885</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Noncurrent Financial Assets</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Derivative assets</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>73</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4,116</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">24</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,361</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm;height:13.45pt'>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total noncurrent financial assets</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>  73</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4,116</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">  24</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,361</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Total Financial Assets</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>US$</b><b>545</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Php30,707</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$400</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php22,246</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Current Financial Liabilities</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Accounts payable</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>US$46</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Php2,592</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$71</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php3,947</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Accrued expenses and other current liabilities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>77</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4,338</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">71</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,947</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Derivative liabilities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>8</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>473</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">91</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Interest-bearing financial liabilities</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>483</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>27,203</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">405</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">22,512</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total current financial liabilities</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b> 614</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>34,606</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 549</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">30,497</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Noncurrent Financial Liabilities</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Interest-bearing financial liabilities - net of
 current portion</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,126</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>119,733</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,772</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">156,177</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Derivative liabilities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>105</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>6,930</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">47</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,737</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Preferred stock subject to mandatory redemption</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>222</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>12,512</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">195</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,816</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total noncurrent financial liabilities</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,453</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>139,175</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,014</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">170,730</p>
 </td>
 </tr>
 <tr style='height:13.45pt' style='height:13.45pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Total Financial Liabilities</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>US$</b><b>3,067</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Php173,781</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$3,563</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php201,227</p>
 </td>
 </tr>
</table></center></div>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>(1)</i><i> The
exchange rate used was Php56.341 to US$1.00.</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>(2)  </i><i>The
exchange rate used was Php55.586 to US$1.00.</i></p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">In translating the foreign currency-denominated
monetary assets and liabilities into peso amounts, the exchange rates used were
Php56.341 to US$1.00 and Php55.586 to US$1.00, the Philippine peso-U.S. dollar
exchange rates as at December 31, 2004 and 2003, respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As
at February 28, 2005, the peso-dollar exchange rate was Php54.685 to
US$1.00.  Using this exchange rate, our consolidated net foreign
currency-denominated liabilities as at December 31, 2004
would have decreased by Php4,176 million.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">While
a certain percentage of our revenues is either linked to or denominated in U.S.
dollars, substantially all of our indebtedness and related interest expense, a
substantial portion of our capital expenditures and a portion of our operating
expenses are denominated in foreign currencies, mostly in U.S. dollars.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As
at December 31, 2004, approximately 98% of our total consolidated debts
were denominated in foreign currencies, principally in U.S. dollars.  Of our
foreign currency-denominated debts, 4% are in Japanese yen, and the balance in
U.S. dollars.  Thus, a weakening of the Philippine peso against the U.S. dollar
or Japanese yen will increase both the principal amount of our unhedged foreign
currency-denominated debts (representing 64% of our consolidated foreign-currency
debts), and interest expense on our debt in peso terms.  In addition, many of
our financial ratios and other financial tests will be negatively affected.
If, among other things, the value of the Philippine peso against the U.S.
dollar substantially drops from its current level, we may be unable to maintain
compliance with these ratios, which could result in acceleration of some or all
of our indebtedness.  For further information on our loan covenants, see <i>Note
12 &#150; Interest-bearing Financial Liabilities</i>.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">To
manage our foreign exchange risks, stabilize cash flows, and improve investment
and cash flow planning, we enter into foreign exchange forward contracts,
foreign currency swap contracts, currency options and other hedging products
aimed at reducing and/or managing the adverse impact of changes in foreign
exchange rates on our operating results and cash flows.  However, these hedges
do not cover all of our exposure to foreign exchange risks, and hedges to cover
all of our exposure are not currently readily available.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Specifically,
we use forward foreign exchange contracts, foreign currency swap contracts and
currency option contracts to manage the foreign exchange risk associated with
our foreign currency-denominated loans.  </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>Interest Rate Risk</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On a
limited basis, we enter into interest rate swap agreements in order to manage
our exposure to interest rate fluctuations.  We make use of hedging instruments
and structures solely for reducing or managing financial risks associated with
our liabilities and not for trading or speculative purposes.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Fixed
rate financial instruments are subject to fair value interest rate risk while
floating rate financial instruments are subject to cash flow interest rate
risk.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Repricing
of floating rate financial instruments is mostly done on intervals of three
months or six months.  Interest on fixed rate financial instruments is fixed
until maturity of instrument.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><b><i>Credit Risk</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
trade only with recognized, creditworthy third parties.  It is our policy that
all customers who wish to trade on credit terms are subject to credit
verification procedures.  In addition, receivable balances are monitored on an
ongoing basis to reduce our exposure to bad debts.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">With
respect to credit risk arising from our other financial assets, which comprise
cash and cash equivalents, certain derivative instruments, our exposure to
credit risk arises from default of the counterparty, with a maximum exposure
equal to the carrying amount of these instruments.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
have no significant concentrations of credit risk.</p>

<p style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="OLE_LINK6"><i>&nbsp;</i></a></p>

<div style='border:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 0in 0in'>

<p style='line-height:50%;page-break-after:avoid;border:none;
padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='margin-top:0in;page-break-after:avoid;punctuation-wrap:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">24.    Reportable Segments </p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Operating
segments are components of PLDT that engage in business activities from which
it may earn revenues and incur expenses (including revenues and expenses
relating to transactions with other components of PLDT), whose operating
results are regularly reviewed by the enterprise&#146;s chief operating decision
maker to make decisions about resources to be allocated to the segment and
assess its performance, and for which discrete financial information is available.
The accounting policies of the reportable segments are the same as those
described in <i>Note 3 &#150; Summary of Significant Accounting Policies and
Practices</i>.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
have organized our business into three main segments:</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Wireless &#151; wireless telecommunications services provided through our cellular
service providers, Smart and Piltel, and satellite and VSAT operators, namely
PLDT&#146;s subsidiaries Mabuhay Satellite, ACeS Philippines and Telesat;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Fixed Line &#151; fixed line telecommunications services primarily provided through
PLDT.  We also provide fixed line services through PLDT&#146;s subsidiaries Clark
Telecom, Subic Telecom, Maratel, Piltel and BCC which together account for
approximately 3% of our consolidated fixed lines in service, and PLDT Global;
and</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Information and Communications
Technology &#151; information and communications infrastructure and
services for internet applications, internet protocol-based solutions and
multimedia content delivery provided by PLDT&#146;s subsidiary ePLDT; call center
services provided by ePLDT&#146;s subsidiaries Parlance Systems, Inc., Vocativ
Systems, Inc. and Ventus; internet access and gaming services provided by
ePLDT&#146;s subsidiaries, Infocom Technologies, Inc., DigiPar and netGames; and
e-commerce and IT-related services provided by other investees of ePLDT, as
described in <i>Note 8 - Investments</i>.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The results of the reportable
segments are derived directly from the PLDT Group&#146;s management reporting
system. The results are based on the PLDT Group&#146;s method of internal
reporting.  The segment assets as at December 31, 2004,
2003 and 2002 and results of operations of our reportable segments for the
years ended December 31, 2004, 2003 and 2002 reported under U.S. GAAP are as
follows:</p>

<p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:95.1%;margin-left:.4pt;border-collapse:collapse;border-collapse:
 collapse !msorm'>

 <tr>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Wireless</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Fixed Line</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Information and Communications Technology</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Inter-segment Transactions</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Total</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-left:2.7in;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=5 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-left:.05pt;text-align:center' style="margin-top:0;margin-bottom:0">(in millions of pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><i>As at and for the year
 ended </i><i>December 31, 2004</i></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>Revenues</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Service</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">69,050</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">48,484</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,080</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(4,662)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">114,952</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Non-service</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">6,111</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">321</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(163)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">6,269</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">Segment revenues</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">75,161</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">48,484</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,401</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(4,825)</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">121,221</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-top:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:double windowtext 1.5pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-top:double windowtext 1.5pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>Result</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:22.5pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Operating income (loss)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">32,392</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">16,575</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(634)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">206</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">48,539</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:22.5pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Income (loss) before income tax,
 cumulative effect of change in accounting policy and minority interest in net
 loss of consolidated subsidiaries</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">33,407</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,076</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(643)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">34,840</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Provision for income tax</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(5,967)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(800)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(59)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(6,826)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:22.5pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Net income (loss) for the year before
 cumulative effect of change in accounting policy and minority interest in net
 loss of consolidated subsidiaries</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">27,440</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,276</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(702)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">28,014</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>Assets</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Segment assets</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">90,467</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">196,299</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,716</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(30,870)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">259,612</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Deferred income tax assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,164</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">16,845</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">18</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">20,027</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">Total assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">93,631</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">213,144</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,734</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(30,870)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">279,639</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Goodwill</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">15,787</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">426</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">187</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">16,400</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>Other segment
 information </b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Capital expenditures</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">14,742</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,026</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">500</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">19,268</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Depreciation and amortization</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">10,085</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">9,674</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">339</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">20,098</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Provision for doubtful accounts</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">204</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,744</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,948</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Provision for inventory obsolescence</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">213</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">361</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 577</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Asset impairment</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">430</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">365</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">617</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,412</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">MRP</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">13</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">553</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 566</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Interest on loans and related items</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">984</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">10,137</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">42</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(48)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">11,115</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Interest income</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">724</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">248</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">18</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(48)</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 942</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:12.0pt' style='page-break-inside:
 avoid !msorm;height:12.0pt !msorm'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:12.0pt'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:12.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:12.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:12.0pt'>
 <p align=right style='margin-left:13.5pt;text-align:right;
 text-indent:-13.5pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:12.0pt'>
 <p align=right style='margin-left:13.5pt;text-align:right;
 text-indent:-13.5pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:12.0pt'>
 <p align=right style='margin-left:13.5pt;text-align:right;
 text-indent:-13.5pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:12.0pt' style='page-break-inside:
 avoid !msorm;height:12.0pt !msorm'>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:12.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0"><i>As at and </i><i>for
 the year ended </i><i>December 31, 2003</i></p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:12.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:12.0pt'>
 <p align=right style='margin-left:13.5pt;text-align:right;
 text-indent:-13.5pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>Revenues</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Service</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">54,635</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">46,820</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,467</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(2,436)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">100,486</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Non-service</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">10,548</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">316</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(150)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">10,714</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">Segment revenues</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">65,183</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">46,820</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,783</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(2,586)</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">111,200</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-top:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:double windowtext 1.5pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-top:double windowtext 1.5pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>Result</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:22.5pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Operating income (loss)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">18,919</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">14,517</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(489)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">432</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">33,379</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:22.5pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Income (loss) before income tax,
 cumulative effect of change in accounting policy and minority interest in net
 income of consolidated subsidiaries</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">15,163</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(4,911)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(432)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">9,820</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Benefit
 from (provision for) income tax</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(1,672)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,008</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">64</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,400</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:22.5pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Net income (loss) for the year before
 cumulative effect of change in accounting policy and minority interest in net
 income of consolidated subsidiaries</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">13,491</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,903)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(368)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">11,220</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>Assets</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Segment assets</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">86,696</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">190,510</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,040</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(24,594)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">255,652</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Deferred income tax assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,092</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">17,546</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">74</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">20,712</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">Total assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">89,788</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">208,056</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,114</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(24,594)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">276,364</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Goodwill</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">14,941</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">426</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">97</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">15,464</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>Other segment
 information </b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Capital expenditures</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">11,372</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">6,393</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">178</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">17,943</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Depreciation and amortization</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">12,183</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">9,315</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">314</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">21,812</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Provision for doubtful accounts</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">72</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,950</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">70</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,092</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Provision for inventory obsolescence</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">87</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">152</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">12</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 251</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Asset impairment</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">288</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">387</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 675</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">MRP</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,560</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,565</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Interest on loans and related items</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,348</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">10,034</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">52</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">11,434</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Interest income</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">368</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">138</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 513</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:12.0pt' style='page-break-inside:
 avoid !msorm;height:12.0pt !msorm'>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:12.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0"><i>As at and </i><i>for
 the year ended </i><i>December 31, 2002</i></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:12.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:12.0pt'>
 <p align=right style='margin-left:13.5pt;text-align:right;
 text-indent:-13.5pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:12.0pt'>
 <p align=right style='margin-left:13.5pt;text-align:right;
 text-indent:-13.5pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:12.0pt'>
 <p align=right style='margin-left:13.5pt;text-align:right;
 text-indent:-13.5pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>Revenues</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Service</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">36,157</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">46,186</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">772</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,429)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">81,686</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Non-service</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">12,095</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">205</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(155)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">12,145</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">Segment revenues</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">48,252</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">46,186</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 977</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,584)</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">93,831</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-top:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:double windowtext 1.5pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-top:double windowtext 1.5pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>Result</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:22.5pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Operating income (loss)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">10,337</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,393</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(481)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(220)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">12,029</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:22.5pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Income (loss) before income tax,
 cumulative effect of change in accounting policy and minority interest in net
 income of consolidated subsidiaries</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">7,297</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(11,379)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(512)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(4,594)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Provision
 for income tax</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,217)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(221)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,438)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:22.5pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Net income (loss) for the year before
 cumulative effect of change in accounting policy and minority interest in net
 income (loss) of consolidated subsidiaries</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">6,080</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(11,600)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(512)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(6,032)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>Assets</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Segment assets</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">79,184</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">185,334</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,370</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(15,354)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">252,534</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Deferred
 income tax assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,665</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">14,181</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">16,853</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">Total
 assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">81,849</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">199,515</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,377</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(15,354)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">269,387</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Goodwill</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">14,768</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">426</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">97</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">15,291</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>Other segment
 information </b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Capital expenditures</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">7,564</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">9,068</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">607</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">17,239</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Depreciation and amortization</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">6,907</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">10,305</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">354</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">17,566</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Provision for doubtful accounts</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">456</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,659</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">45</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,160</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Provision for inventory obsolescence</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">390</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">86</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 476</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Asset impairment</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">75</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">13,204</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">13,279</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">MRP</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">324</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 324</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Interest on loans and related items</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,813</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">10,816</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">16</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">12,645</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Interest income</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">141</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">79</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">16</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">237</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 473</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div style='border:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 0in 0in'>

<p style='line-height:50%;border:none;padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">25.    Other Matters</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">a.     Supplemental
Disclosures of Cash Flow Information</p>

<p align=right style='text-align:right;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:101.2%;border-collapse:collapse;border-collapse:collapse !msorm'>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2002</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:13.2pt' style='page-break-inside:
 avoid !msorm;height:13.2pt !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:13.2pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:13.2pt'>
 <p align=center style='margin-right:4.3pt;text-align:center;
 text-indent:22.5pt' style="margin-top:0;margin-bottom:0">     (in millions of
 pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid;height:13.2pt' style='page-break-inside:
 avoid !msorm;height:13.2pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.2pt'>
 <p style="margin-top:0;margin-bottom:0">Cash paid during the year
 for:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.2pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.2pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.2pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:13.2pt' style='page-break-inside:
 avoid !msorm;height:13.2pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.2pt'>
 <p style='text-indent:9.4pt' style="margin-top:0;margin-bottom:0">Income
 tax </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.2pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>5,478</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.2pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2,453</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.2pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">351</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:14.1pt' style='page-break-inside:
 avoid !msorm;height:14.1pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:14.1pt'>
 <p style='margin-left:9.4pt' style="margin-top:0;margin-bottom:0">Interest:
 </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:14.1pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:14.1pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:14.1pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:14.1pt' style='page-break-inside:
 avoid !msorm;height:14.1pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:14.1pt'>
 <p style='margin-left:9.4pt' style="margin-top:0;margin-bottom:0">    Capitalized
 to property, plant and equipment</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:14.1pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>595</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:14.1pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">887</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:14.1pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">1,343</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:13.2pt' style='page-break-inside:
 avoid !msorm;height:13.2pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.2pt'>
 <p style='text-indent:18.4pt' style="margin-top:0;margin-bottom:0">Charged
 to operations</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.2pt'>
 <p align=right style='margin-right:4.25pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>12,310</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.2pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">11,777</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.2pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">13,956</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:13.5pt' style='page-break-inside:
 avoid !msorm;height:13.5pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.5pt'>
 <p style='text-indent:9.4pt' style="margin-top:0;margin-bottom:0">Interest
 income received</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>954</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">484</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:13.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">735</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.55pt' style='page-break-inside:
 avoid !msorm;height:8.55pt !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:8.55pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:8.55pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:8.55pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:8.55pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.55pt' style='page-break-inside:
 avoid !msorm;height:8.55pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:8.55pt'>
 <p style="margin-top:0;margin-bottom:0">Supplemental schedule of
 noncash investing and financing activities:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:8.55pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:8.55pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:8.55pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.55pt' style='page-break-inside:
 avoid !msorm;height:8.55pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:8.55pt'>
 <p style='text-indent:9.4pt' style="margin-top:0;margin-bottom:0">Preferred
 stock subject to mandatory redemption issued</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:8.55pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>125</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:8.55pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">152</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:8.55pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">36</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.55pt' style='page-break-inside:
 avoid !msorm;height:8.55pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:8.55pt'>
 <p style='text-indent:9.4pt' style="margin-top:0;margin-bottom:0">Long-term
 debt restructured</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:8.55pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>170</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:8.55pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">208</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:8.55pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">82</p>
 </td>
 </tr>
</table></center></div>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">b.       Interconnection Agreements</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">PLDT has existing interconnection
agreements with nine International Gateway Facilities, or IGF operators, six
Inter Exchange Carriers, or IXCs, six Cellular Mobile Telephone Systems, or
CMTS operators, 70 Local Exchange Carriers, or LECs, (including members of the
Philippine Association of Private Telephone Companies, Inc.), and 12 paging and
trunk radio operators.  These interconnection agreements include provisions for
settlement and payment of charges.  Settlements with interconnecting IGF
operators and CMTS operators for local calls are in the form of access
charges.  Settlement with interconnecting IXCs and LECs for toll calls are
based on hauling and access charges, and to some extent, revenue sharing.
Settlement also involves payment of access charges, but settlement for toll
calls is on a revenue-sharing basis.  LEC to LEC interconnection with hauling
from one service area to another service area is settled based on trunk
charges, while overlay LEC to LEC interconnection in a given service area is
without charges.  Paging and trunk radio interconnection settlements are based
on fixed charges.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">c.       Proposed Metering of Local Exchange Service</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
proposed metering of PLDT&#146;s local exchange service has been temporarily suspended
for further review by the NTC.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:22.5pt;text-indent:-22.5pt;punctuation-wrap:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">d.       U.S. Federal Communications Commission, or FCC, Ruling
versus Philippine Telecommunications Companies</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Effective as at February 1, 2003,
PLDT stopped terminating traffic sent directly by each of AT&amp;T and MCI,
because PLDT&#146;s termination rate agreements with AT&amp;T and MCI lapsed in
December 2002 without either agreeing with PLDT on any provisional arrangement
or final agreement on new termination rates.  In separate orders dated February
7 and 26, 2003, the NTC confirmed that &#147;absent any provisional or interim
agreement&#148; with U.S. carriers, there would be no provision of termination
services between the parties &#147;who are thereby encouraged to seek other routes
or options to terminate traffic to the Philippines.&#148;  Upon petitions of AT&amp;T and MCI, on March 10,
2003, the International Bureau of the U.S. FCC issued an Order which directed
all facilities-based carriers subject to U.S. FCC jurisdiction to suspend
payments for termination services to Philippine carriers, including PLDT, Smart
and Subic Telecom, until such time as the U.S. FCC issued a Public Notice that
AT&amp;T&#146;s and MCI&#146;s circuits on the U.S.&#150;Philippine route were fully
restored.  The Order also removed the Philippines from the list of U.S.&#150;international routes approved
for the provision of International Simple Resale, or ISR.  In response to the
International Bureau&#146;s Order, the NTC issued a Memorandum Order dated March 12,
2003, directing all affected Philippine carriers &#147;(1) not to accept terminating
traffic via direct circuits from U.S. facilities-based carriers who do not pay
Philippine carriers for services rendered; and (2) to take all measures
necessary to collect payments for services rendered in order to preserve the
viability, efficiency, sustained growth and development and continued
competitiveness of the Philippine telecommunications industry.&#148;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">On
October 17, 2003, based on negotiations between the NTC and the U.S. FCC to
resolve the issue regarding termination rates, the NTC, in the expectation that
the U.S. FCC would fully lift the March 10, 2003 Order, lifted its March 12,
2003 Order and directed all Philippine carriers to immediately accept
terminating traffic via direct circuits from U.S. facilities-based carriers at
mutually acceptable final or interim termination rates and other terms and
conditions agreed upon by the parties.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On
November 17, 2003, after Smart reached interim agreements with each of AT&amp;T
and MCI on September 30 and November 12, 2003, respectively, the International
Bureau of the U.S. FCC lifted its March 10, 2003 Order with respect to Smart
and ordered the U.S. carriers to resume making payments to Smart.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On
January 15, 2004, after PLDT reached interim agreements with each of MCI and
AT&amp;T and reopened its circuits with these carriers on November 12, 2003 and
January 9, 2004, respectively, the International Bureau of the U.S. FCC lifted
its March 10, 2003 Order also with respect to PLDT and ordered the U.S.
carriers to resume making payments to PLDT.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On
May 13, 2004, the U.S. FCC partially dismissed and partially denied
applications by Philippine carriers, including PLDT, and certain U.S. carriers
for review of the March 10, 2003 Order of the International Bureau of the U.S.
FCC.  In particular, the U.S. FCC affirmed the March 10, 2003 Order&#146;s finding
that &#147;Philippine carriers engaged in collective action to &#147;whipsaw&#148; AT&amp;T
and MCI.&#148; The U.S. FCC stated, however, that the findings of the March 10, 2003 Order
were not findings under the U.S. anti-trust laws and that the U.S. Department of Justice
is independently &#147;investigating the possibility of anticompetitive practices
among Philippine carriers under its authority pursuant to U.S.
anti-trust laws.&#148;  The U.S. FCC also upheld the March 10, 2003 Order in respect
of the suspension of payments for termination services to the Philippine
carriers pending restoration of the circuits.  In addition, the U.S. FCC denied
a request to modify the March 10, 2003 Order of the International Bureau of the
U.S. FCC to restore the Philippines to the list of U.S.-international routes
approved for the provision of ISR.  The U.S. FCC stated that it was dismissing
this request as moot because of the U.S. FCC&#146;s recently adopted International
Settlements Policy Reform Order which eliminated ISR policies.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Although
not included in the initial list of countries exempted from the U.S. FCC&#146;s
International Settlements Policy, or ISP, the U.S. FCC identified the
U.S.&#150;Philippines route as eligible for being removed from the ISP in accordance
with its newly established procedures for doing so.  Under this procedure, the
U.S. FCC asked for public comment on the removal of the Philippines
from the ISP.  In comments filed in June and July 2004, removal was reported by
several Philippine and U.S. carriers, including AT&amp;T and MCI, and was opposed
by one U.S. carrier, International Access, Inc.  In November 2004, the U.S. FCC
exempted a number of additional countries from the ISP, but not the Philippines.
Instead, the U.S. FCC stated that it would rule separately regarding the Philippines
after reviewing the issues raised by International Access, Inc.  These issues
are still pending before the U.S. FCC.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On
July 6, 2004, PLDT filed with the U.S. FCC a petition for reconsideration of
the U.S. FCC&#146;s May 13, 2004 Order on the grounds that the order should have
vacated as moot the International Bureau&#146;s March 10, 2003 Order.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">e.   Investigation by U.S. <a
name="OLE_LINK11">Department of Justice</a></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
January 2004, PLDT received a grand jury subpoena seeking documents and a PLDT
employee was subpoenaed to testify before the grand jury in connection with a
criminal investigation that was conducted by the U.S. Department of Justice
with respect to alleged antitrust violations relating to the provision of
international termination services in the Philippines.  The U.S. Department of Justice has also requested
testimony and documents from Smart in connection with this investigation.
Further, in March 2004, PLDT (U.S.) Ltd., a subsidiary of PLDT Global, received
a grand jury subpoena seeking documents, in response to which PLDT (U.S.) Ltd.
produced documents.  <a name="OLE_LINK8">In February 2005, two former employees
of PLDT (U.S.) Ltd. testified before the grand jury in the U.S. Department of
Justice matter.  A PLDT employee was also scheduled to reappear for testimony
in February, but his appearance has been postponed.  </a> On May 11, 2005, the
U.S. Department of Justice informed our legal counsel in Washington, D.C., Covington
&amp; Burling, that the U.S. Department of Justice has terminated its antitrust
investigation relating to termination rate increases implemented in early 2003
by certain Philippine long distance carriers including PLDT and that no
enforcement action will be taken.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">f.    Employees
and Labor Relations</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As
at December 31, 2004, we had 18,433 employees within the PLDT Group.  PLDT
had 9,476 employees at the end of 2004, of which 49% were rank and file
employees, 47% were management/supervisory staff and 4% were executives.  This
number represents a decrease of 754 employees, or approximately 7%, from the
staff level as at the end of 2003, mainly as a result of the ongoing MRP.  From
a peak of 20,312 at the end of 1994, PLDT&#146;s number of employees has declined by
10,836, or 53%, by the end of 2004.  As at December 31, 2003,
we had 17,653 and 10,230 employees under the PLDT Group and PLDT,
respectively.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">PLDT
has three employee unions, the members of which in the aggregate represent 42%
of the employees of the PLDT Group.  We consider our relationship with our
rank-and-file employees&#146; union, our supervisors&#146; union and our sales
supervisors&#146; union to be good.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On
March 8, 2005, PLDT and PLDT Sales Supervisors&#146; Union, or PSSU, concluded and
signed a new three-year Collective Bargaining Agreement, or CBA, covering the
period from January 1, 2005 to December 31, 2007.  This CBA provides each
member monthly salary increases of 8% of basic pay or Php2,000, whichever is
higher, for 2005; 10% of basic pay or Php2,700, whichever is higher, for 2006;
and another 10% of basic pay or Php2,400, whichever is higher, for 2007.  Other
highlights of this CBA were improvements of existing benefits and a one-time
signing bonus of Php33,000, including a Php3,000 goodwill bonus, for each member
of PSSU.  Furthermore, a Php4,000 one-time clothing allowance is also provided
under the CBA.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">On January 20, 2005, PLDT and <i>Gabay ng Unyon sa
Telekomunikasyon ng mga Superbisor</i>, or GUTS, our supervisors&#146; union,
concluded and signed a new three-year CBA covering the period from January 1,
2005 to December 31, 2007.  This CBA provides each member monthly salary
increases of 8% of basic pay or Php2,000, whichever is higher, for 2005; 10% of
basic pay or Php2,700, whichever is higher, for 2006; and another 10% of basic
pay or Php2,400, whichever is higher, for 2007.  Other highlights of this CBA
are improvements of existing benefits and a one-time signing bonus of
Php33,000, including a Php3,000 goodwill bonus, for each member of GUTS.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On
February 13, 2004, PLDT and the <i>Manggagawa ng Komunikasyon sa Pilipinas</i>,
or MKP, our rank-and-file employees&#146; union, concluded and signed a new
three-year CBA covering the period from November 9, 2003 to November 8, 2006.
This CBA provides each member a signing bonus equivalent to one month salary
plus Php10,000; monthly salary increases of Php1,800, Php1,850 and Php2,450 for
the first year, second year and third year, respectively; an increase in
monthly relay station allowance from Php500 to Php600; an increase in per diem
from Php500 to Php570; a food station allowance of Php650 per covered employee;
an increase in yearly Christmas gift certificate from Php6,000 to Php7,000; an
increase in the amount of coverage under the group life insurance plan from
Php400,000 to Php500,000; and an additional contribution of Php1 million to the
Educational Loan Fund.  Other highlights of this CBA include emergency loan
eligibility, an emergency case hospitalization clause and additional benefits
under the medical hospitalization plan for single members&#146; dependents.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

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style='page-break-before:always'>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

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<p style='line-height:50%;border:none;padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

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<p style='punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0"><b>26.    Changes in Presentation
of Comparative Consolidated Financial Statements</b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">We have reclassified certain
accounts in 2003 and 2002 consolidated financial statements to conform with our
2004 consolidated financial statements presentation.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

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