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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0000078150-05-000037.txt : 20050804
<SEC-HEADER>0000078150-05-000037.hdr.sgml : 20050804
<ACCEPTANCE-DATETIME>20050804123718
ACCESSION NUMBER:		0000078150-05-000037
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20050630
FILED AS OF DATE:		20050804
DATE AS OF CHANGE:		20050804

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:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-03006
		FILM NUMBER:		05998496

	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>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>pldt6k2q2005.htm
<DESCRIPTION>PLDT 2Q 2005 RESULTS
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<div>

<p style='page-break-after:auto;punctuation-wrap:hanging;
text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF </p>

<p style='page-break-after:auto;punctuation-wrap:hanging;
text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">FINANCIAL CONDITION AND RESULTS OF OPERATIONS</p>

<p style='page-break-after:auto;punctuation-wrap:hanging;
text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">For the Six Months Ended June 30,
 2005</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>In
the following discussion and analysis of our financial condition and results of
operations, unless the context indicates or otherwise requires, references to
&#147;we,&#148; &#147;us,&#148; &#147;our&#148; or &#147;PLDT Group&#148; mean the Philippine Long Distance Telephone
Company and its consolidated subsidiaries, and references to &#147;PLDT&#148; mean the
Philippine Long Distance Telephone Company, not including its consolidated
subsidiaries (see Note 2 &#150; Summary of Significant Accounting Policies and
Practices to the accompanying unaudited consolidated financial statements for a
list of these subsidiaries, including a description of their respective
principal business activities).</i></p>

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

<p style='text-indent:.5in' 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 the accompanying unaudited
consolidated financial statements and the related notes.  Our financial
statements, and the financial information discussed below, have been prepared
in accordance with Philippine generally accepted accounting principles, or
Philippine GAAP, which differs in certain significant respects from generally
accepted accounting principles in the United States.</i></p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>The
financial information appearing in this report and in the accompanying
unaudited consolidated financial statements is stated in Philippine pesos.  All
references to &#147;pesos,&#148; &#147;Philippine pesos&#148; or &#147;Php&#148; are to the lawful currency
of the Philippines; all references to &#147;U.S. dollars,&#148; &#147;US$&#148; or &#147;dollars&#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</i> <i>and all references to &#147;Euro&#148; or &#147;&#128;&#148; are to the
lawful currency of the European Union</i><i>.  Translations of Philippine peso
amounts into U.S. dollars in this report and in the accompanying unaudited
consolidated financial statements were made based on the exchange rate of
Php56.177 to US$1.00, the volume weighted average exchange rate at </i><i>June 30, 2005</i><i>
quoted through the Philippine Dealing System.</i></p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Some
information in this report may contain forward-looking statements within the
meaning of Section 27A of the </i><i>U.S.</i><i> Securities Act of 1933 and Section 21E of the </i><i>U.S.</i><i>
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.</i></p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>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 forward-looking statements and assumed
facts or bases almost always vary from actual results, and the differences
between the results implied by the forward-looking statements and 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 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 forward-looking statements in this report after the
date hereof.  In light of these risks and uncertainties, any forward-looking statement
made in this report or elsewhere might not occur.</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>Our
audited consolidated financial statements as at and for the year ended December
31, 2004 incorporate certain changes in accounting policies which have affected
our financial position and results of operations retrospectively.  For further
discussion please see Note 2 &#150; Summary of Significant Accounting Policies and
Practices to the accompanying unaudited consolidated financial statements.</i></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"><b>Financial Highlights and Key Performance Indicators</b></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:100.38%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style=';text-align:justify;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='margin-left:.2pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>June 30, </b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-left:.2pt;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'>
 <p align=center style='margin-left:.2pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>December 31,</b></p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-left:.2pt;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'>
 <p align=center style='margin-top:0in;;
 margin-bottom:0in;margin-left:.2pt;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Increase (Decrease)</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style=';text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>(in millions)</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' style="margin-top:0;margin-bottom:0"><b>2005</b></p>
 </td>
 <td   valign=bottom 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=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-left:.2pt;text-align:center' 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='margin-left:.2pt;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 5.4pt 0in 5.4pt'>
 <p align=center style='margin-top:0in;;
 margin-bottom:0in;margin-left:.2pt;margin-bottom:.0001pt;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 5.4pt 0in 5.4pt'>
 <p align=center style='margin-left:.2pt;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 5.4pt 0in 5.4pt'>
 <p align=center style='margin-left:.2pt;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 5.4pt 0in 5.4pt'>
 <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 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(Unaudited)</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(Audited)</p>
 </td>
 <td   valign=bottom 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=bottom 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=bottom 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=bottom 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>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style=';text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Consolidated Balance Sheets</b></p>
 </td>
 <td   valign=bottom 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=bottom 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=bottom 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=bottom 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 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' 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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">Total assets</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php263,189</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php265,473</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">(Php2,284)</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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">Property, plant and equipment </p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">190,176</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">194,525</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">(4,349)</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:22.5pt;margin-bottom:.0001pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Cash and cash equivalents and short-term
 investments</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">35,656</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">31,194</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.7pt;text-align:right' style="margin-top:0;margin-bottom:0">4,462</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-left:.7pt;text-align:right' 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' style="margin-top:0;margin-bottom:0">14</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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">Total equity</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">59,304</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">48,515</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.7pt;text-align:right' style="margin-top:0;margin-bottom:0">10,789</p>
 </td>
 <td   valign=bottom 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=bottom 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">22</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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">Interest-bearing financial liabilities</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">146,265</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">164,489</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">(18,224)</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(11)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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">Notes payable and
 long-term debt</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">131,611</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">149,088</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">(17,477)</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(12)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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">Net debt to equity ratio(1)</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">1.62x</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">2.43x</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style=';text-align:justify;line-height:
 7.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=7 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style=';text-align:center;
 line-height:7.0pt' 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 5.4pt 0in 5.4pt'>
 <p style=';text-align:justify;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 5.4pt 0in 5.4pt'>
 <p align=center style=';text-align:center' style="margin-top:0;margin-bottom:0"><b>Six Months Ended June 30, </b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' 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>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-left:3.65pt;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'>
 <p align=center style=';text-align:center' 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='margin-top:0in;;
 margin-bottom:0in;margin-left:.5pt;margin-bottom:.0001pt;text-align:center' 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='margin-top:0in;;
 margin-bottom:0in;margin-left:.5pt;margin-bottom:.0001pt;text-align:center' 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='margin-top:0in;;
 margin-bottom:0in;margin-left:.5pt;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Increase (Decrease)</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' 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>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-left:3.65pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>2005</b></p>
 </td>
 <td   valign=bottom 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=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-top:0in;;
 margin-bottom:0in;margin-left:.5pt;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>2004</b>(2)</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-top:0in;;
 margin-bottom:0in;margin-left:.5pt;margin-bottom:.0001pt;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 5.4pt 0in 5.4pt'>
 <p align=center style='margin-top:0in;;
 margin-bottom:0in;margin-left:.5pt;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-top:0in;;
 margin-bottom:0in;margin-left:.5pt;margin-bottom:.0001pt;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 5.4pt 0in 5.4pt'>
 <p align=center style='margin-top:0in;;
 margin-bottom:0in;margin-left:.5pt;margin-bottom:.0001pt;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 5.4pt 0in 5.4pt'>
 <p style=';text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=7 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(Unaudited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style=';text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Consolidated Statements of Income</b></p>
 </td>
 <td   valign=bottom style=' 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=' 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=' 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=top style=' 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=top style=' 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=top style=' 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=top style=' 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>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.35pt'>
 <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">Revenues and other income</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.35pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php61,138</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.35pt'>
 <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;
 height:10.35pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php62,299</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.35pt'>
 <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;
 height:10.35pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">(Php1,161)</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.35pt'>
 <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;
 height:10.35pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:22.5pt;margin-bottom:.0001pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Service income</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">59,522</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">57,841</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' style="margin-top:0;margin-bottom:0">1,681</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' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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">Expenses</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">38,627</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">46,040</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' style="margin-top:0;margin-bottom:0">(7,413)</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' style="margin-top:0;margin-bottom:0">(16)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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">Income before income tax</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">22,511</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">16,259</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' style="margin-top:0;margin-bottom:0">6,252</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' style="margin-top:0;margin-bottom:0">38</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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">Net income attributable to equity
 holders</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">16,785</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">12,423</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' style="margin-top:0;margin-bottom:0">4,362</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' style="margin-top:0;margin-bottom:0">35</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style=';text-align:justify;text-indent:
 13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net income
 margin</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">27%</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">20%</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' style="margin-top:0;margin-bottom:0">&#150;</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' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style=';text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Consolidated Statements of Cash Flows
 </b></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' 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' 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>
 <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' 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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">Net cash provided by operating
 activities</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">34,619</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">38,080</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' style="margin-top:0;margin-bottom:0">(3,461)</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' style="margin-top:0;margin-bottom:0">(9)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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">Net cash used in investing activities</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">2,220</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">13,435</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' style="margin-top:0;margin-bottom:0">(11,215)</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' style="margin-top:0;margin-bottom:0">(83)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:22.5pt;margin-bottom:.0001pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Capital expenditures</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">7,012</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">11,575</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' style="margin-top:0;margin-bottom:0">(4,563)</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' style="margin-top:0;margin-bottom:0">(39)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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">Net cash used in financing activities</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">23,996</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">21,151</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">2,845</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' style="margin-top:0;margin-bottom:0">13</p>
 </td>
 </tr>
 <tr style='height:.15in'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:13.5pt;margin-bottom:.0001pt;text-align:justify;text-indent:
 -13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Operational
 Data</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='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 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <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'>
 <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">Number of cellular subscribers</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">20,789,469</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">16,028,407</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' style="margin-top:0;margin-bottom:0">4,761,062</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' style="margin-top:0;margin-bottom:0">30</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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">Number of fixed lines in service</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">2,137,813</p>
 </td>
 <td   valign=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">2,201,257</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' style="margin-top:0;margin-bottom:0">(63,444)</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' style="margin-top:0;margin-bottom:0">(3)</p>
 </td>
 </tr>
 <tr style='height:.15in'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <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">Number of employees</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">18,649</p>
 </td>
 <td   valign=bottom style=' 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=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">17,849</p>
 </td>
 <td   valign=top style=' 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=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">800</p>
 </td>
 <td   valign=top style=' 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=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 </tr>
</table></center></div>

<p style='line-height:8.0pt' 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:347.4pt;border-collapse:collapse'>
 <tr style='height:10.7pt'>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.7pt'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:13.5pt;margin-bottom:.0001pt;text-align:justify;text-indent:
 -13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Exchange Rates</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt;height:10.7pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Php per US$</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.7pt'>
 <p align=center style='margin-left:13.7pt;text-align:center;
 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;height:10.7pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Php per JP&yen;</b></p>
 </td>
 </tr>
 <tr style='height:7.65pt'>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:7.65pt'>
 <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">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;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=top style=' 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=top style=' border:none;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='height:7.65pt'>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:7.65pt'>
 <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">June 30, 2005</p>
 </td>
 <td  valign=top style=' 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">Php56.177</p>
 </td>
 <td  valign=top style=' 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=top style=' 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">Php0.5067</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:6.75pt'>
 <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">December 31, 2004</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:6.75pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">56.341</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 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=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:6.75pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">0.5495</p>
 </td>
 </tr>
 <tr style='height:9.45pt'>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:9.45pt'>
 <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">June 30, 2004</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">56.176</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">0.5166</p>
 </td>
 </tr>
 <tr style='height:4.35pt'>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:4.35pt'>
 <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">December 31, 2003</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:4.35pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">55.586</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:4.35pt'>
 <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:4.35pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">0.5193</p>
 </td>
 </tr>
</table></center></div>

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

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

<p style='margin-top:0in;;margin-bottom:0in;
margin-left:.25in;margin-bottom:.0001pt;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(1)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>Net debt is derived by
deducting cash and cash equivalents and short-term investment from long-term
debt. </i></p>

<p style='margin-top:0in;;margin-bottom:0in;
margin-left:.25in;margin-bottom:.0001pt;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(2)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>As restated to reflect the
effects of the changes in accounting policies, as discussed in Note 2 &#150; Summary
of Significant Accounting Policies and Practices to the accompanying unaudited
consolidated financial statements. </i></p>

<p style='text-align:justify;text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0"><a
name="_Toc6822633"></a><a name="_Toc520601088"></a><a name="_Toc520103169">&nbsp;</a></p>

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

<p style='text-align:justify;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">We are the largest and
most diversified telecommunications company in the Philippines.  We have
organized our business into three main segments:</p>

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

<p style='margin-left:58.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Wireless </i><i>&#151;</i><i> </i>wireless
telecommunications services provided by Smart Communications, Inc., or Smart,
and Pilipino Telephone Corporation, or Piltel, our cellular service providers,
and Mabuhay Satellite Corporation, ACeS Philippines Cellular Satellite
Corporation, and Telesat, Inc., our satellite and very small aperture terminal,
or VSAT, operators;<i> </i></p>

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

<p style='margin-left:58.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Fixed Line </i><i>&#151;</i><i> </i>fixed line
telecommunications services primarily provided through PLDT.  We also provide
fixed line services through PLDT&#146;s subsidiaries PLDT Clark Telecom, Inc., Subic
Telecommunications Company, Inc., PLDT-Maratel, Inc., Piltel and Bonifacio Communications
Corporation, which together account for approximately 3% of our consolidated
fixed lines in service, and PLDT Global Corporation; and</p>

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

<p style='margin-left:58.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Information and Communications
Technology </i><i>&#151;</i><i> </i>information
and communications infrastructure and services for internet applications,
internet protocol-based solutions and multimedia content delivery provided by
PLDT&#146;s subsidiary ePLDT, Inc.; call center services provided by ePLDT&#146;s
subsidiaries Parlance Systems, Inc., Vocativ Systems, Inc. and ePLDT Ventus,
Inc.; internet access and gaming services provided by ePLDT&#146;s subsidiaries,
Infocom Technologies, Inc., Digital Paradise, Inc. and netGames, Inc.; and
e-commerce, and IT-related services provided by other investees of ePLDT, as
discussed in <i>Note 9 &#150; Investments in Associates</i> to the accompanying
unaudited consolidated financial statements. </p>

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

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0">We registered total
revenues and other income of Php61,138 million, a decrease of Php1,161 million
in the first half of 2005 as compared to Php62,299 million in the same period
in 2004 primarily due to the Php2,944 million decline in our non-service
wireless revenues, partially offset by Php1,681 million net increase in our
service revenues.  Total service revenues increased by 3% in the first half of
2005 compared to the same period in 2004.</p>

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

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0">Expenses decreased by
Php7,413 million, or 16%, to Php38,627 million in the first half of 2005 from
Php46,040 million in the same period in 2004 largely resulting from decreases
in financing costs mostly driven by the appreciation of the peso against the
U.S. dollar and Japanese yen and lower cost of sales.</p>

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

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0">With the expiration of
Smart&#146;s income tax holiday in May 2004, we recognized a higher provision for
income tax of Php5,694 million for the first half of 2005 as compared to <br>
Php3,811 million in the same period in 2004.</p>

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

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0">As a result of the
foregoing, our net income attributable to equity holders increased by Php4,362
million, or 35%, to Php16,785 million in the first half of 2005 from Php12,423
million in the same period in 2004.</p>

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

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">Accounting Changes </h1>

<p style='text-align:justify;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">The accounting
policies adopted are consistent with those of the previous financial period
except that we have adopted in year-end 2004 the following new accounting
standards effective for financial years beginning January 1, 2005.  Our June 30, 2004 unaudited consolidated financial statements herein have been restated to
give effect to the provisions of the new standard adopted: </p>

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

<ul style='margin-top:0in' type=disc>
 <li><b><i>PAS 19, &#147;Employee
 Benefits&#148;.</i></b><i>  </i>PAS 19 requires the use of the projected unit
 credit method in measuring retirement benefit expense and a change in the
 manner of computing benefit expense relating to past service cost and
 actuarial gains and losses.  Past service cost is recognized as an expense
 on a straight-line basis over the average period until the benefits become
 vested.  On the initial adoption of
 this standard, the effect of the change in accounting policy includes all
 actuarial gains and losses that arose in earlier periods even if they fall
 inside the 10% corridor.  In subsequent periods, portion of actuarial
 gains or losses is recognized as income or expense if the cumulative
 unrecognized actuarial gains and losses at the end of the previous
 reporting period exceed the greater of: (i) 10% of the present value of
 the defined benefit obligation at that date (before deducting plan
 assets); and (ii) 10% of the fair value of any planned assets at that date
 by dividing the excess determined by the expected average remaining
 working lives of the employees participating in that plan is recognized
 immediately as income or expense.<i>  </i></li>
</ul>

<p style='margin-left:.5in;text-align:justify;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<ul style='margin-top:0in' type=disc>
 <li><b><i>PAS 21, &#147;The Effects
 of Changes in Foreign Exchange Rates&#148;.</i></b><i>  </i>PAS
 21 requires the recognition of foreign exchange gains and losses in the
 period they are incurred.  Upon the adoption of PAS 21, we adjusted
 previously recorded undepreciated capitalized foreign exchange losses, net
 of exchange losses that qualify as borrowing cost and income tax effect,
 against beginning retained earnings, to the extent that such capitalized
 amounts do not meet the conditions for capitalization under the new accounting
 standard, and restated prior periods&#146; unaudited consolidated financial
 statements.  Further, PAS 21 requires the determination of the functional
 currency of an entity.  Exchange differences from any retranslation are
 taken directly as a separate component of equity.  On disposal of an
 entity with a functional currency other than the Philippine peso, the
 deferred cumulative amount recognized in equity relating to that
 particular foreign operation shall be recognized in the consolidated
 income statement.  </li>
</ul>

<p style='margin-left:.5in;text-align:justify;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<ul style='margin-top:0in' type=disc>
 <li><b><i>PAS 27, &#147;Consolidated
 and Separate Financial Statements&#148;.</i></b>  PAS 27 supersedes SFAS
 27/IAS 27, &#147;Consolidated Financial
 Statements and Accounting for Investments in Subsidiaries&#148;.  Under PAS 27,
 the exclusion of a subsidiary from consolidation when there are severe
 long-term restrictions that significantly impair a subsidiary&#146;s ability to
 transfer funds to the parent company under the superseded standard was
 removed.  Consequently, Piltel was required to be included in our
 unaudited consolidated financial statements retrospectively.</li>
</ul>

<p style='margin-left:.5in;text-align:justify;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<ul style='margin-top:0in' type=disc>
 <li><b><i>PAS 32, &#147;Financial
 Instruments: Disclosure and Presentation&#148;.</i></b><i>  </i>PAS
 32 covers the disclosure and presentation of all financial instruments.
 This standard requires more comprehensive disclosures about a company&#146;s
 financial instruments, whether recognized or unrecognized in the financial
 statements.  New disclosure requirements include terms and conditions of
 financial instruments used, types of risks associated with both recognized
 and unrecognized financial instruments (market risk, price risk, credit
 risk, liquidity risk, and cash flow risk), fair value information of both
 recognized and unrecognized financial assets and financial liabilities,
 and our financial risk management policies and objectives.  This standard
 also requires financial instruments to be classified as liabilities or
 equity in accordance with their substance and not their legal form.
 Consequently, we have designated PLDT&#146;s Convertible Preferred Stock Series
 V, VI and VII as compound instruments consisting of liability and equity
 components.  The total fair value of the Convertible Preferred Stock
 Series V, VI and VII was determined at issue date, of which the aggregate
 fair value of the liability component of the Series V, VI and VII
 Convertible Preferred Stock as at issuance date is included as a financial
 liability under <i>Interest-bearing
 Financial Liabilities</i> account in
 the accompanying unaudited consolidated balance sheets.  The residual
 amount was assigned as the equity component.</li>
</ul>

<p style='margin-left:.5in;text-align:justify;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<ul style='margin-top:0in' type=disc>
 <li><b><i>PAS 39, &#147;Financial
 Instruments: Recognition and Measurement&#148;.</i></b><i>  </i>PAS
 39 establishes the accounting and reporting standards for recognizing and
 measuring our financial assets and financial liabilities.  This standard
 requires a financial asset or financial liability to be recognized
 initially at fair value.  Subsequent to initial recognition, we are to
 continue to measure financial assets at their fair values, except for
 loans and receivables and held-to-maturity investments, which are measured
 at cost or amortized cost using the effective interest rate method.
 Financial liabilities are subsequently measured at cost or amortized cost,
 except for liabilities classified as &#147;at fair value through profit and
 loss&#148; and derivatives, which are measured at fair value.</li>
</ul>

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

<p style='margin-left:.5in;text-indent:0in;page-break-after:
auto' style="margin-top:0;margin-bottom:0">PAS 39 also covers the accounting for derivative instruments.  This
standard has expanded the definition of a derivative instrument to include
derivatives (derivative-like provisions) embedded in non-derivative contracts.
Under this standard, every derivative instrument is recorded in the balance
sheet as either an asset or liability measured at its fair value.  Derivatives
that are not designated and do not qualify as hedges are adjusted to fair value
through income.  If the derivative is designated and qualifies as a hedge,
depending on the nature of the hedge, changes in the fair value of derivatives
are either offset against the change in fair value of the hedged assets,
liabilities, or firm commitments through earnings, or recognized in equity
until the hedged item is recognized in earnings.</p>

<p style='margin-left:.5in;line-height:10.0pt;punctuation-wrap:
hanging;text-autospace:ideograph-numeric ideograph-other;border:none' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<ul style='margin-top:0in' type=disc>
 <li><b><i>PAS 40, &#147;Investment
 Property&#148;.</i></b><i>  </i>PAS 40 prescribes the accounting treatment for
 investment properties which are defined as land and/or building held to
 generate income or for capital appreciation or both.  An investment
 property is initially recognized at cost.  Subsequent to initial
 recognition, an investment property is either carried at (i) cost, less
 accumulated depreciation or any accumulated impairment losses, or (ii)
 fair value, wherein fair value movements are recognized as income or
 expense.  Transfers to or from investment property classification are made
 only when there is evidence of a change in use.</li>
</ul>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<ul style='margin-top:0in' type=disc>
 <li><b><i>PFRS 2, &#147;Share-Based
 Payment&#148;.</i></b><i>  </i>PFRS 2 requires an entity to recognize goods or
 services received or acquired in a share-based payment transaction when it
 obtains the goods or as the services are received.  The entity shall
 recognize a corresponding increase in equity if the goods or services were
 received in an equity-settled share-based payment transaction, or a
 liability if the goods or services were acquired in a cash-settled
 share-based payment transaction.  In line with our adoption of PFRS 2, we
 recognized in our consolidated statements of income the costs of
 employees&#146; and directors&#146; share options and other share-based incentives
 by using an option-pricing model, further details of which are given in <i>Note
 21 &#150; Employee Benefits </i>to the accompanying unaudited consolidated
 financial statements<i>.</i></li>
</ul>

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

<ul style='margin-top:0in' type=disc>
 <li><b><i>PFRS 3, &#147;Business
 Combinations&#148;, PAS 36, &#147;Impairment of Assets&#148; and PAS 38, &#147;Intangible
 Assets&#148;.</i></b><i>  </i>PFRS 3 requires all business combinations within
 its scope to be accounted for by applying the purchase method.  In
 addition, this standard requires the acquirer to initially measure
 separately the identifiable assets, liabilities and contingent liabilities
 at their fair values, at acquisition date, irrespective of the extent of
 any minority interest.</li>
</ul>

<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">PFRS 3 also requires
goodwill in a business combination to be recognized by an acquirer as an asset
from the acquisition date, initially measured as the excess of the cost of the
business combination over the acquirer&#146;s interest in the net fair value of the
acquiree&#146;s identifiable assets and liabilities.  Further, the amortization of
goodwill acquired in a business combination is prohibited; instead, goodwill is
to be tested annually, or more frequently, if events or changes in
circumstances indicate that the asset might be impaired. </p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-align:left' style="margin-top:0;margin-bottom:0">Moreover, the useful lives of intangible assets are
assessed at the individual asset level as having either a finite or indefinite
life.  Where an intangible asset has a finite life, it will be amortized over
its useful life.  Amortization periods and methods
for intangible assets with finite useful lives are reviewed annually or earlier
where an indicator or impairment exists.  Intangibles assessed as having
indefinite useful lives are not amortized, as there is no foreseeable limit to
the period over which the asset is expected to generate net cash inflows for the
PLDT Group.  However, intangibles with indefinite useful lives are reviewed
annually to ensure that their carrying values do not exceed the recoverable
amounts regardless of any impairment indicators present. </p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<ul style='margin-top:0in' type=disc>
 <li><b><i>PFRS 5, &#147;Non-Current
 Assets Held-for-Sale and Discontinued Operations&#148;.</i></b><i>  </i>Under
 the superseded SFAS 35/IAS 35, &#147;Discontinuing
 Operations&#148;,<i> </i>we would have previously recognized a discontinued
 operation at the earlier of when (a) we enter into a binding agreement;
 and (b) the Board of Directors have approved and announced a formal
 disposal plan.  PFRS 5 now requires an operation to be classified as
 discontinued when the criteria to be classified as held-for-sale have been
 met or we have disposed of the operation.</li>
</ul>

<p style='margin-bottom:0in;margin-bottom:.0001pt' 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">Following
additional guidelines from PAS 16, &#147;Property, Plant and Equipment&#148;, we have
recognized the initial settlement of the
net present value of legal and constructive 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 in
the period in which it is incurred.  The asset retirement obligations were
recognized in the period in which they are incurred if a reasonable estimate of
fair values can be made.  The related asset retirement costs are capitalized as
part of the carrying amount of the corresponding property, plant and equipment
which are being depreciated on a straight-line basis over the useful lives of
the related assets or the contract periods, whichever is lower.</p>

<p align=left style='margin-bottom:0in;margin-bottom:.0001pt;
text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The following is the reconciliation from net income
as previously reported to net income as restated, including the effect of these
restatements on per share amounts:</p>

<p style='line-height:10.0pt;page-break-after:auto' 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:6.15in;border-collapse:collapse'>

 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' 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;text-indent:
 0in;page-break-after:auto' 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;text-indent:
 0in;page-break-after:auto' style="margin-top:0;margin-bottom:0">For the Six Months
 Ended June 30,</p>
 <p align=center style='text-align:center;text-indent:
 0in;page-break-after:auto' style="margin-top:0;margin-bottom:0">2004</p>
 </td>
 </tr>

 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' style="margin-top:0;margin-bottom:0">(in millions, except per share amounts)</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' 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='text-align:right;text-indent:
 0in;page-break-after:auto' 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:0in;page-break-after:auto' style="margin-top:0;margin-bottom:0"><b>Net income, as previously reported</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' 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=right style='margin-right:2.9pt;text-align:
 right;text-indent:0in;page-break-after:auto' style="margin-top:0;margin-bottom:0">Php12,008</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:9.0pt;page-break-after:auto' style="margin-top:0;margin-bottom:0">PAS 16 &#150; Property, Plant and Equipment</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' 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;text-indent:
 0in;page-break-after:auto' style="margin-top:0;margin-bottom:0">(34)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:9.0pt;page-break-after:auto' style="margin-top:0;margin-bottom:0">PAS 17 &#150; Leases</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' 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;text-indent:0in;page-break-after:auto' 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='text-indent:9.0pt;page-break-after:auto' style="margin-top:0;margin-bottom:0">PAS 19 &#150; Employee Benefits </p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' 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;text-indent:
 0in;page-break-after:auto' style="margin-top:0;margin-bottom:0">(15)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:9.0pt;page-break-after:auto' style="margin-top:0;margin-bottom:0">PAS 21 &#150; The Effects of Changes in Foreign Exchange
 Rates</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' 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;text-indent:0in;page-break-after:auto' style="margin-top:0;margin-bottom:0">1,226</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:9.0pt;page-break-after:auto' style="margin-top:0;margin-bottom:0">PAS 27 &#150; Consolidated and Separate Financial
 Statements</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' 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;text-indent:0in;page-break-after:auto' style="margin-top:0;margin-bottom:0">840</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:9.0pt;page-break-after:auto' style="margin-top:0;margin-bottom:0">PAS 32 &#150; Financial Instruments:  Disclosure and
 Presentation</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' 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;text-indent:
 0in;page-break-after:auto' style="margin-top:0;margin-bottom:0">(647)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">PAS
 39 &#150; Financial Instruments:  Recognition and Measurement</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' 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;text-indent:
 0in;page-break-after:auto' style="margin-top:0;margin-bottom:0">(830)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">PAS
 40 &#150; Investment Property</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' 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;text-indent:
 0in;page-break-after:auto' 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='text-indent:9.0pt;page-break-after:auto' style="margin-top:0;margin-bottom:0">PFRS 2 &#150; Share-Based Payment</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' 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;text-indent:
 0in;page-break-after:auto' style="margin-top:0;margin-bottom:0">(93)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:45.0pt;text-indent:-.5in;
 page-break-after:auto' style="margin-top:0;margin-bottom:0">PFRS 3 &#150; Business
 Combinations, PAS 36 &#150; Impairment of Assets and <br>
 PAS 38 &#150; Intangible Assets</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' 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='text-align:right;text-indent:
 0in;page-break-after:auto' style="margin-top:0;margin-bottom:0">(26)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' style="margin-top:0;margin-bottom:0"><b>Net income, as restated</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' 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;text-indent:0in;page-break-after:auto' style="margin-top:0;margin-bottom:0">Php12,423</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' 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='text-indent:0in;page-break-after:auto' 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;text-indent:0in;page-break-after:auto' 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:0in;page-break-after:auto' 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='text-indent:0in;page-break-after:auto' 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;text-indent:0in;page-break-after:auto' 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:0in;page-break-after:auto' 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='text-indent:0in;page-break-after:auto' 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;text-indent:0in;page-break-after:auto' 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:0in;page-break-after:auto' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 <p style='text-indent:0in;page-break-after:auto' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 <p style='text-indent:0in;page-break-after:auto' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 <p style='text-indent:0in;page-break-after:auto' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 <p style='text-indent:0in;page-break-after:auto' 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='text-indent:0in;page-break-after:auto' 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;text-indent:0in;page-break-after:auto' 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:0in;page-break-after:auto' style="margin-top:0;margin-bottom:0"><b>Earnings per common share, as previously reported</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' 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;text-indent:0in;page-break-after:auto' style="margin-top:0;margin-bottom:0">Php65.62</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:9.0pt;page-break-after:auto' style="margin-top:0;margin-bottom:0">Earnings per share impact of restated items:</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' 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;text-indent:
 0in;page-break-after:auto' 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:9.0pt;page-break-after:auto' style="margin-top:0;margin-bottom:0">PAS 16 &#150; Property, Plant and Equipment</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' 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;text-indent:
 0in;page-break-after:auto' style="margin-top:0;margin-bottom:0">(0.20)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:9.0pt;page-break-after:auto' style="margin-top:0;margin-bottom:0">PAS 17 &#150; Leases</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' 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;text-indent:0in;page-break-after:auto' style="margin-top:0;margin-bottom:0">0.01</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:9.0pt;page-break-after:auto' style="margin-top:0;margin-bottom:0">PAS 19 &#150; Employee Benefits </p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' 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;text-indent:
 0in;page-break-after:auto' style="margin-top:0;margin-bottom:0">(0.09)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:9.0pt;page-break-after:auto' style="margin-top:0;margin-bottom:0">PAS 21 &#150; The Effects of Changes in Foreign Exchange
 Rates</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' 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;text-indent:0in;page-break-after:auto' style="margin-top:0;margin-bottom:0">7.17</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:9.0pt;page-break-after:auto' style="margin-top:0;margin-bottom:0">PAS 27 &#150; Consolidated and Separate Financial
 Statements</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' 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;text-indent:0in;page-break-after:auto' style="margin-top:0;margin-bottom:0">4.95</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:9.0pt;page-break-after:auto' style="margin-top:0;margin-bottom:0">PAS 32 &#150; Financial Instruments:  Disclosure and
 Presentation</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' 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;text-indent:
 0in;page-break-after:auto' style="margin-top:0;margin-bottom:0">(3.04)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">PAS
 39 &#150; Financial Instruments:  Recognition and Measurement</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' 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;text-indent:
 0in;page-break-after:auto' style="margin-top:0;margin-bottom:0">(4.90)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">PAS
 40 &#150; Investment Property</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' 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;text-indent:
 0in;page-break-after:auto' style="margin-top:0;margin-bottom:0">(0.04)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:9.0pt;page-break-after:auto' style="margin-top:0;margin-bottom:0">PFRS 2 &#150; Share-Based Payment</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' 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;text-indent:
 0in;page-break-after:auto' style="margin-top:0;margin-bottom:0">(0.55)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:45.0pt;text-indent:-.5in;
 page-break-after:auto' style="margin-top:0;margin-bottom:0">PFRS 3 &#150; Business
 Combinations, PAS 36 &#150; Impairment of Assets and <br>
 PAS 38 &#150; Intangible Assets</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' 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;text-indent:
 0in;page-break-after:auto' style="margin-top:0;margin-bottom:0">(0.15)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' style="margin-top:0;margin-bottom:0"><b>Earnings per common share, as restated</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:0in;page-break-after:auto' 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;text-indent:0in;page-break-after:auto' style="margin-top:0;margin-bottom:0">Php68.78</p>
 </td>
 </tr>
</table></center></div>

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

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0">We fully adopted PAS
16 in 2005, which requires us to determine the depreciation charge separately
for each significant part of an item of property, plant and equipment.
Consequently, we changed the estimated useful lives of certain components of
our property, plant and equipment and we recognized the effect of the change in
accounting estimate prospectively, in accordance with <i>PAS 8, &#147;Accounting
Policies, Changes in Accounting Estimates and Errors&#148;.</i>  Our full adoption
of this standard reduced our consolidated net income by Php698 million (Php475
million after tax effect) for the six months ended June 30, 2005.</p>

<p style='page-break-after:auto' 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='text-indent:.5in' style="margin-top:0;margin-bottom:0">For a detailed discussion regarding changes in
accounting policies, please refer to <i>Note 2 &#150; </i><i>Summary of Significant Accounting Policies</i> <i>and Practices</i> to the
accompanying unaudited consolidated financial statements.</p>

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

<p style='text-align:justify;line-height:10.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><b>Results of Operations </b></p>

<p style='text-align:justify;text-indent:.5in;line-height:10.0pt;
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 table below shows the contribution by each of our
business segments to our revenues and other income, expenses and net income (losses)
for the six months ended June 30, 2005 and 2004.  Most of our revenues are derived from our
operations within the Philippines.</p>

<p style='text-align:justify;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:117.9%;;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=' 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>Wireless</b></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"><b>&nbsp;</b></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"><b>&nbsp;</b></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"><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>Fixed Line</b></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"><b>&nbsp;</b></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"><b>&nbsp;</b></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"><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='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>ICT</b></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>
 <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=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   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>Inter-segment
 Transactions</b></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>
 <td   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>Total</b></p>
 </td>
 <td   valign=top 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>
 <td   valign=top 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>
 <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"><b>(in millions)</b></p>
 </td>
 <td   valign=bottom style=' border: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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:3.55pt;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=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:3.55pt;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:2.9pt;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='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=' border: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">&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=' border: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">&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=' border: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">&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 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"><b>For the six months ended </b><b>June 30, 2005</b><b>
 </b>(Unaudited)</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:3.55pt;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=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:3.55pt;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='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>
 <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>
 <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 style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Revenues and other income</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">Php38,051</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">&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">&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">&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">Php24,336</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">&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">&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=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">Php1,587</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <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">&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">(Php2,836)</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">Php61,138</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">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Service</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">36,703</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">&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">&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">&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">24,214</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">&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">&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=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">1,328</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">&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">&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:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2,723)</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">59,522</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">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Non-service</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">1,291</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">&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">&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">&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: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'>
 <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">&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">215</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">&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">&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:5.75pt;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'>
 <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">1,422</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">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Other income</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">57</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">&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">&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">&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">122</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">&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">&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=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">44</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">&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">&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:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(29)</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">194</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">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Expenses</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">20,459</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">&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">&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">&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">19,486</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">&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">&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=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">1,518</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">&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">&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:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2,836)</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">38,627</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">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Income before tax</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">17,592</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">&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">&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">&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">4,850</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">&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">&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=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">69</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">&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">&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=bottom style=' 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=' 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">22,511</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">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:31.5pt;text-indent:-13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Net income attributable to equity
 holders</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">13,324</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">&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">&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">&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">3,378</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">&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">&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=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">83</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">&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">&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=bottom style=' 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=' 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=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">16,785</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">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.55pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p style='margin-left:4.5pt;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:8.55pt'>
 <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:8.55pt'>
 <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:8.55pt'>
 <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:8.55pt'>
 <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:8.55pt'>
 <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:8.55pt'>
 <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:8.55pt'>
 <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:8.55pt'>
 <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:8.55pt'>
 <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:8.55pt'>
 <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:8.55pt'>
 <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:8.55pt'>
 <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:8.55pt'>
 <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:8.55pt'>
 <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:8.55pt'>
 <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:8.55pt'>
 <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:8.55pt'>
 <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'>
 <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"><b>For the six months ended </b><b>June 30, 2004</b>(1) (Unaudited)</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">&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">&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">&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">&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">&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">&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">&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=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">&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">&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">&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: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">&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: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">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Revenues and other income</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">38,353</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">&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">&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">&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">24,215</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">&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">&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=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">1,127</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:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,396)</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">62,299</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 style='page-break-inside:avoid;height:4.95pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.95pt'>
 <p style='margin-left:.25in;text-indent:13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Service</p>
 </td>
 <td   valign=bottom 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">33,983</p>
 </td>
 <td   valign=bottom 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=bottom 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=bottom 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=bottom 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">24,108</p>
 </td>
 <td   valign=bottom 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=bottom 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: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:4.95pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">953</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">&nbsp;</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:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,203)</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:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">57,841</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:2.9pt;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:4.95pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.95pt'>
 <p style='margin-left:.25in;text-indent:13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Non-service</p>
 </td>
 <td   valign=bottom 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">4,235</p>
 </td>
 <td   valign=bottom 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=bottom 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=bottom 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=bottom 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">&#150;</p>
 </td>
 <td   valign=bottom 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=bottom 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: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:4.95pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">161</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">&nbsp;</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:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(85)</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:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,311</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:2.9pt;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:4.95pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.95pt'>
 <p style='margin-left:.25in;text-indent:13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Other income</p>
 </td>
 <td   valign=bottom 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">135</p>
 </td>
 <td   valign=bottom 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=bottom 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=bottom 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=bottom 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">107</p>
 </td>
 <td   valign=bottom 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=bottom 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: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:4.95pt'>
 <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=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">&nbsp;</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:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(108)</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:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">147</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:2.9pt;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:4.95pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.95pt'>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Expenses</p>
 </td>
 <td   valign=bottom 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">23,055</p>
 </td>
 <td   valign=bottom 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=bottom 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=bottom 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=bottom 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">23,307</p>
 </td>
 <td   valign=bottom 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=bottom 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: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:4.95pt'>
 <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;
 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">&nbsp;</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:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,396)</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:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">46,040</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:2.9pt;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:4.95pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.95pt'>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Income before tax</p>
 </td>
 <td   valign=bottom 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">15,298</p>
 </td>
 <td   valign=bottom 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=bottom 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=bottom 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=bottom 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">908</p>
 </td>
 <td   valign=bottom 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=bottom 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: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:4.95pt'>
 <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>
 <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">&nbsp;</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=bottom 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">&#150;</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=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">16,259</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:2.9pt;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=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:31.5pt;text-indent:-13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Net income attributable to equity
 holders</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">11,735</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">&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">&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">&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">638</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=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">50</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">&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">&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=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: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'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,423</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">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.4pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.4pt'>
 <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:9.4pt'>
 <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:9.4pt'>
 <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:9.4pt'>
 <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:9.4pt'>
 <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:9.4pt'>
 <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:9.4pt'>
 <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:9.4pt'>
 <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:9.4pt'>
 <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:9.4pt'>
 <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;
 height:9.4pt'>
 <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:9.4pt'>
 <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 0in 0in 0in;
 height:9.4pt'>
 <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 0in 0in 0in;
 height:9.4pt'>
 <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:9.4pt'>
 <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 0in 0in 0in;
 height:9.4pt'>
 <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 0in 0in 0in;
 height:9.4pt'>
 <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 0in 0in 0in;
 height:9.4pt'>
 <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 style='page-break-inside:avoid;height:9.4pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.4pt'>
 <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:9.4pt'>
 <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:9.4pt'>
 <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:9.4pt'>
 <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:9.4pt'>
 <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:9.4pt'>
 <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:9.4pt'>
 <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:9.4pt'>
 <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:9.4pt'>
 <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:9.4pt'>
 <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;
 height:9.4pt'>
 <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:9.4pt'>
 <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 0in 0in 0in;
 height:9.4pt'>
 <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 0in 0in 0in;
 height:9.4pt'>
 <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:9.4pt'>
 <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 0in 0in 0in;
 height:9.4pt'>
 <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 0in 0in 0in;
 height:9.4pt'>
 <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 0in 0in 0in;
 height:9.4pt'>
 <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 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"><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='margin-right:5.75pt;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'>
 <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>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:5.75pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">%</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:5.75pt;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'>
 <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>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:5.75pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">%</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <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>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:5.75pt;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'>
 <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>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:5.75pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">%</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <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>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:5.75pt;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='margin-right:5.75pt;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='margin-right:5.75pt;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='margin-right:5.75pt;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='margin-right:5.75pt;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:11.65pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:11.65pt'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Increase (Decrease)</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:11.65pt'>
 <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:11.65pt'>
 <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:11.65pt'>
 <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:11.65pt'>
 <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:11.65pt'>
 <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:11.65pt'>
 <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:11.65pt'>
 <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:11.65pt'>
 <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:11.65pt'>
 <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:11.65pt'>
 <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:11.65pt'>
 <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:11.65pt'>
 <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:11.65pt'>
 <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:11.65pt'>
 <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:11.65pt'>
 <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:11.65pt'>
 <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:11.65pt'>
 <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'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Revenues and other income</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">(Php302)</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">&nbsp;</p>
 </td>
 <td   valign=bottom 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">(1)</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">&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">Php121</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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' 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=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=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">Php460</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">&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">41</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">(Php1,440)</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:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php1,161)</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:2.9pt;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=' padding:0in 0in 0in 0in'>
 <p style='margin-left:31.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Service</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">2,720</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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.4pt;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=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'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">106</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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' 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=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=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">375</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">&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">39</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">(1,520)</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">1,681</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</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:31.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Non-service</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">(2,944)</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">&nbsp;</p>
 </td>
 <td   valign=bottom 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">(70)</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">&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: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'>
 <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=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=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">54</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">&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">34</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:8.65pt;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: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:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2,889)</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">(67)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:31.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Other income</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">(78)</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">&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">(58)</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">&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">15</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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' 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</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=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">31</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">&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">238</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:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">79</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">47</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">32</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Expenses</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">(2,596)</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:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(11)</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">&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">(3,821)</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">&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">(16)</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=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">444</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">&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">41</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">(1,440)</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:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(7,413)</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">(16)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Income before tax</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">2,294</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">&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">15</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">&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">3,942</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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' 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">434</p>
 </td>
 <td   valign=top style=' 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=' 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">16</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">30</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:8.65pt;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: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">6,252</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">38</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:31.5pt;text-indent:-13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Net income attributable to equity
 holders</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">1,589</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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.4pt;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'>
 <p align=right style='margin-right:5.4pt;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">2,740</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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' 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">429</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-left:10.1pt;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:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">33</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">&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">66</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=bottom style=' 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=' 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='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,362</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">&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">35</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0"><a
name="OLE_LINK5"><i>_____________</i></a></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(1)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>As restated to reflect the
effects of the changes in accounting policies, as discussed in Note 2 &#150; Summary
of Significant Accounting Policies and Practices to the accompanying unaudited
consolidated financial statements.</i></p>

<p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0"><a
name="OLE_LINK1"><b>&nbsp;</b></a></p>

<p style='margin-left:13.5pt;text-indent:-13.5pt' 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='page-break-after:auto' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">Revenues and Other Income</h3>

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

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0">Our wireless business
segment offers cellular services as well as satellite, VSAT, wireless broadband,
and other services.</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 summarizes our service and
non-service revenues and other income from our wireless business for the six
months ended June 30, 2005 and 2004 by service 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: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>Six months ended June 30,</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>2005</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>2004</b>(1)</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"><b>&nbsp;</b></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">(Unaudited)</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"><b>(in millions)</b></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">&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;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: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: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=' 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=' 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=' 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=' 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: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: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">Php35,448</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">93</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">Php32,973</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">86</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">Php2,475</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">8</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:40.5pt;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Satellite, VSAT, wireless broadband 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">1,255</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">1,010</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=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=bottom 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">245</p>
 </td>
 <td   valign=bottom 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=bottom 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">24</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;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">36,703</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">96</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">33,983</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">89</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:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,720</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:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8</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=' 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=' 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=' 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=' 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=' 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=' 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=' 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">1,291</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">4</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">4,235</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">11</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:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2,944)</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=' 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">(70)</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' 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' 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' 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' 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' 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' 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' 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' 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' 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' 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' 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' 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:9.0pt' style="margin-top:0;margin-bottom:0">Other Income</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">57</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=' 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">&#150;</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=' 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">135</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=' 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">&#150;</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=top style=' 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">(78)</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=top style=' 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">(58)</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' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 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=' 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-top:solid windowtext 1.0pt;
 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=' 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-top:
 solid windowtext 1.0pt;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=' 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-top:solid windowtext 1.0pt;
 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=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=top style=' border:none;border-top:solid windowtext 1.0pt;
 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=' 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=top style=' border:none;border-top: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">&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' style="margin-top:0;margin-bottom:0">Total
 Wireless Revenues and Other Income</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">Php38,051</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">Php38,353</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=top style=' border:none;border-bottom:double windowtext 1.5pt;
 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">(Php302)</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:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1)</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0"><i>___________</i></p>

<p style='margin-left:13.7pt;text-indent:-13.7pt;line-height:
50%' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0"><i>(1) As restated to reflect the effects of the changes
in accounting policies, as discussed in Note 2 &#150; Summary of Significant
Accounting Policies and Practices to the accompanying unaudited consolidated
financial statements.</i></p>

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

<p style="margin-top:0;margin-bottom:0"><i>Service Revenues</i></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">Our wireless service
revenues increased by Php2,720 million, or 8%, to Php36,703 million in the
first half of 2005 compared to Php33,983 million in the same period in 2004,
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 revenues and other
income, service revenues increased to 96% in the first half of 2005 from 89% in
the same period in 2004. </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>Cellular Service</i></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-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='page-break-after:auto' style="margin-top:0;margin-bottom:0">Our cellular service
revenues in the first half of 2005 amounted to Php35,448 million, an increase
of Php2,475 million, or 8%, from Php32,973 million in the same period in 2004.
Cellular service revenues accounted for 97% of wireless service revenues in the
first half of 2005 and 2004.  </p>

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

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0">As at June 30, 2005, Smart and Piltel cellular subscribers reached 20,789,469, an increase of
4,761,062, or 30%, over the combined cellular subscriber base of 16,028,407 as at
 June 30, 2004.  Prepaid subscribers accounted for 99% and 98% of our total
subscriber base as at June 30, 2005 and 2004, respectively.  Prepaid net
subscriber activations totaled 1,587,478 in the first half of 2005, or a
monthly average addition of 264,580 subscribers.  Postpaid subscribers totaled
268,253 subscribers, reflecting a net reduction of 6,241 in the first half of
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">Smart
markets nationwide cellular communications services under the brand names <i>Smart
Buddy, Smart Gold,</i> <i>addict mobile,</i> <i>addict mobile prepaid</i>, or <i>amp</i>,
<i>Smart Infinity,</i> <i>Smart Kid </i>and<i> Smart Kid prepaid.  Smart Buddy,
addict mobile prepaid </i>and <i>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, which are all provided through Smart's digital network.
</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">Piltel markets its
cellular prepaid service under the brand name <i>Talk &#145;N Text</i> and is
provided through Smart&#146;s network.  On December 22, 2004, the Board of Directors
of Smart and Piltel approved the amendment of Piltel&#146;s and Smart&#146;s revenue
sharing arrangement of 50-50 for the <i>Talk &#145;N Text </i>service to 80-20 in
favor of Piltel.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt;
text-indent:.5in' style="margin-top:0;margin-bottom:0">On August 1, 2004, Smart launched <i>Smart Padala</i>, one of
the many innovative initiatives from our <i>Smart Money</i> platform.  <i>Smart
Padala</i> is the first cash remittance service through text and is faster and
cheaper than traditional remittance arrangements.  It was launched initially as
an international remittance service for overseas Filipino workers but is now
available for domestic remittances as well.</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
order to test the apparent market demand for fixed rate or &#147;bucket&#148; plans for
voice and text services, Smart launched from March 11, 2005 the <i>Smart 258</i>
<i>Unlimited Call </i>and <i>Text</i> promotion wherein Smart and <i>Talk &#145;N
Text</i> prepaid subscribers had the option
for the duration of the promotion, to register for unlimited on-network
(Smart-to-Smart) voice calls or unlimited on-network (Smart-to-Smart) text
messaging service.  Available as a promotion for 30 days initially, <i>Smart 258</i>
has since been extended and modified as follows:</p>

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

<ul style='margin-top:0in' type=disc>
 <li>On April 22, 2005, <i>Smart
 25</i><i>8</i><i> Unlimited Call</i> and <i>Text</i> promotions were modified as follows: </li>
</ul>

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

<p style='margin-left:63.0pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the <i>Smart 258</i> <i>Unlimited
Call</i> Php115 load are valid for seven days with a maximum call duration of
three minutes for peak hours which is from 6:01am to 11pm and five minutes for
off-peak hours beginning 11:01pm to 6am;</p>

<p style='margin-left:.5in;text-indent:4.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:4.5pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the Smart <i>258
Unlimited Text</i> Php60 load are valid for four days; and</p>

<p style='margin-left:.5in;text-indent:4.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:4.5pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
subscribers could avail 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>

<ul style='margin-top:0in' type=disc>
 <li>On July 31, 2005, <i>Smart
 258 Unlimited Text</i> added a Php30 load, which is only valid
 for two days.  </li>
</ul>

<p style='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
had 1.4 million subscribers registered under the <i>Smart 258</i> <i>Unlimited
Text </i>promotion as of June 30, 2005.</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-top:0;margin-bottom:0">The following table summarizes key measures of our
cellular business as at and for the six months ended June 30, 2005 and 2004:</p>

<p style='margin-left:.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:101.04%;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=12 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>Six months ended June 30,</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   colspan=3 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   colspan=2 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   colspan=2 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=4 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>2005</b></p>
 </td>
 <td   colspan=3 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   colspan=2 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>2004</b></p>
 </td>
 <td   colspan=2 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=2 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 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"><b>&nbsp;</b></p>
 </td>
 <td   colspan=12 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.2pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Unaudited)</p>
 </td>
 </tr>
 <tr>
 <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"><b>(in millions)</b></p>
 </td>
 <td   colspan=2 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:2.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' 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">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' 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">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' 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">&nbsp;</p>
 </td>
 <td   valign=top style=' 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">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' 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">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:11.25pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:11.25pt'>
 <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">Cellular service
 revenues </p>
 </td>
 <td   colspan=2 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">Php35,448</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:11.25pt'>
 <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   colspan=2 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">Php32,973</p>
 </td>
 <td   colspan=2 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   colspan=2 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">Php2,475</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   colspan=2 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">8</p>
 </td>
 </tr>
 <tr style='height:4.5pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.5pt'>
 <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">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in;
 height: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=bottom style=' padding:0in 0in 0in 0in;
 height:4.5pt'>
 <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   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in;
 height: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=' padding:0in 0in 0in 0in;
 height: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=' padding:0in 0in 0in 0in;
 height: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=' padding:0in 0in 0in 0in;
 height: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=' padding:0in 0in 0in 0in;
 height: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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:.25in;margin-bottom:.0001pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><i>By component</i></p>
 </td>
 <td   colspan=2 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"><i>34,546</i></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"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 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"><i>32,174</i></p>
 </td>
 <td   colspan=2 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"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 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"><i>2,372</i></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"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 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"><i>7</i></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:27.0pt;margin-bottom:.0001pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Voice</p>
 </td>
 <td   colspan=2 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">17,105</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   colspan=2 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">16,636</p>
 </td>
 <td   colspan=2 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   colspan=2 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">469</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   colspan=2 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-top:0in;;margin-bottom:
 0in;margin-left:27.0pt;margin-bottom:.0001pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Data</p>
 </td>
 <td   colspan=2 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">17,441</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   colspan=2 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">15,538</p>
 </td>
 <td   colspan=2 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   colspan=2 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">1,903</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   colspan=2 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">12</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:31.5pt;margin-bottom:.0001pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 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"><i>&nbsp;</i></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"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 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"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 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"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 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"><i>&nbsp;</i></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"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 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"><i>&nbsp;</i></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:.25in;margin-bottom:.0001pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><i>By service type</i></p>
 </td>
 <td   colspan=2 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"><i>34,546</i></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"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 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"><i>32,174</i></p>
 </td>
 <td   colspan=2 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"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 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"><i>2,372</i></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"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 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"><i>7</i></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:27.0pt;margin-bottom:.0001pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Prepaid</p>
 </td>
 <td   colspan=2 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">32,439</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   colspan=2 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">30,146</p>
 </td>
 <td   colspan=2 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   colspan=2 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">2,293</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   colspan=2 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-bottom:
 0in;margin-left:27.0pt;margin-bottom:.0001pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Postpaid</p>
 </td>
 <td   colspan=2 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">2,107</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   colspan=2 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">2,028</p>
 </td>
 <td   colspan=2 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   colspan=2 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">79</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   colspan=2 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">4</p>
 </td>
 </tr>
 <tr style='height:4.35pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.35pt'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:31.5pt;margin-bottom:.0001pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in;
 height:4.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in;
 height:4.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:4.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in;
 height:4.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:.25in;margin-bottom:.0001pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><i>Others</i>(1)</p>
 </td>
 <td   colspan=2 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"><i>902</i></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"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 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"><i>799</i></p>
 </td>
 <td   colspan=2 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"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 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"><i>103</i></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"><i>&nbsp;</i></p>
 </td>
 <td   colspan=2 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"><i>13</i></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:18.05pt;margin-bottom:
 0in;margin-left:4.5pt;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">______________</p>
 </td>
 <td   colspan=2 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">&nbsp;</p>
 </td>
 <td   colspan=2 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   colspan=2 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   colspan=2 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">&nbsp;</p>
 </td>
 <td   colspan=2 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>
 </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='line-height:1.0pt' 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)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>Refers to other
non-subscriber-related revenues consisting primarily of inbound international
roaming fees, revenues from Smart&#146;s public calling offices and payphone
businesses, revenues from Wolfpac and Smart Money Holdings Corporation and a
small number of leased line contracts. </i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:1.0pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></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:101.04%;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 June 30,</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='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>2005</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>2004</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 style='page-break-inside:avoid'>
 <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   colspan=7 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">(Unaudited)</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">20,789,469</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">16,028,407</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">4,761,062</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">30</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">20,521,216</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">15,754,873</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">4,766,343</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">30</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">15,556,780</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">12,200,978</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">3,355,802</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">28</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">4,964,436</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">3,553,895</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">1,410,541</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">40</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">268,253</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">273,534</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:1.45pt;text-align:right' style="margin-top:0;margin-bottom:0">(5,281)</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:1.45pt;text-align:right' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 </tr>
</table></center></div>

<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:101.04%;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='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Six months ended
 June 30,</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='margin-right:2.9pt;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'>
 <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   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>
 <td   valign=bottom style=' border:none;border-top: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>&nbsp;</b></p>
 </td>
 <td   colspan=3 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>Increase</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=' 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>2005</b></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>
 <td   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>2004</b></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>
 <td   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>Amount</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top: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>&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'>
 <p align=center style='margin-right:2.9pt;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='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=7 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">(Unaudited)</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">Systemwide traffic volumes(1) (in millions)</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='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">Calls (in minutes) </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">2,647</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">2,448</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">199</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">8</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:22.5pt;margin-bottom:.0001pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Domestic </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">1,912</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">1,764</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">148</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">8</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:22.5pt;margin-bottom:.0001pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">International</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">735</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">684</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>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.5pt;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">7</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:31.5pt;margin-bottom:.0001pt;text-align:justify;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:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">649</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">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">48</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.5pt;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-bottom:
 0in;margin-left:31.5pt;margin-bottom:.0001pt;text-align:justify;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:2.9pt;text-align:right;
 page-break-after:avoid' 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;
 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">83</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</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</p>
 </td>
 </tr>
 <tr style='height:.15in'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.15in'>
 <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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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 0in 0in 0in;
 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 0in 0in 0in;
 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=top style=' padding:0in 0in 0in 0in;
 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=top style=' padding:0in 0in 0in 0in;
 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=top style=' padding:0in 0in 0in 0in;
 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=top style=' padding:0in 0in 0in 0in;
 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>
 </tr>
 <tr style='height:.15in'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.15in'>
 <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">Text messages </p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">20,778</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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 0in 0in 0in;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">20,312</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 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=top style=' padding:0in 0in 0in 0in;
 height:.15in'>
 <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=top style=' padding:0in 0in 0in 0in;
 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=top style=' padding:0in 0in 0in 0in;
 height:.15in'>
 <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 style='height:.15in'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.15in'>
 <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;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16,971</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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 0in 0in 0in;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16,774</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 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=top style=' padding:0in 0in 0in 0in;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">197</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 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=top style=' padding:0in 0in 0in 0in;
 height:.15in'>
 <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=bottom style=' padding:0in 0in 0in 0in;
 height:.15in'>
 <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;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,807</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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 0in 0in 0in;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,538</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 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=top style=' padding:0in 0in 0in 0in;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;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;
 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=top style=' padding:0in 0in 0in 0in;
 height:.15in'>
 <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>
</table></center></div>

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

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(1)   Excludes traffic volumes relating to Smart 258</i> <i>Unlimited</i><i>
</i><i>Call and Text promotions.</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>Voice
Services</i></p>

<p style='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">Cellular revenues from
voice services, which include all voice traffic and voice value-added services
such as voice mail and international roaming, increased by Php469 million, or 3%,
to Php17,105 million in the first half of 2005 from Php16,636 million in the
same period in 2004 mainly due to an increase in subscriber base which
compensated for a 24% drop in the average voice usage per subscriber from 21 minutes
per month in the first half of 2004 to 16 minutes per month in the same period
in 2005.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt;
text-indent:.5in' style="margin-top:0;margin-bottom:0">Air time rates for postpaid subscribers vary depending on the
type of postpaid plan selected by subscribers.  Beginning January 25, 2004, <i>Smart Gold</i>,<i> Smart Infinity</i> and <i>addict mobile</i> launched flat
rate-regular plans and consumable plans.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
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>Data Services</i></p>

<p style='line-height:9.0pt;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">Cellular
revenues from data services, which
include all text messaging-related services as well as value-added services,
increased by Php1,903 million, or 12%, to Php17,441 million in the first half
of 2005 from Php15,538 million in the same period in 2004.  Cellular data
services accounted for 49% of cellular service revenues in the first half of
2005, compared to 47% in the same period in 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 following table shows the breakdown of cellular
data revenues for the six months ended June 30, 2005 and 2004:</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:100.0%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom 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   colspan=7 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>Six months ended June 30,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom 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   colspan=3 valign=bottom 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=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>&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'>
 <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 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=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>2005</b></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>&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>2004</b></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>&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>Amount</b></p>
 </td>
 <td   valign=bottom 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=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'>
 <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"><b>&nbsp;</b></p>
 </td>
 <td   colspan=7 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">(Unaudited)</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>(in millions)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:3.95pt;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 5.4pt 0in 5.4pt'>
 <p align=right style='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 5.4pt 0in 5.4pt'>
 <p align=right style='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 5.4pt 0in 5.4pt'>
 <p align=right style='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 5.4pt 0in 5.4pt'>
 <p align=right style='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 5.4pt 0in 5.4pt'>
 <p align=right style='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 5.4pt 0in 5.4pt'>
 <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>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Text messaging</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:3.95pt;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>
 <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>
 <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=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Domestic</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">Php14,832</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">Php13,192</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">Php1,640</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">12</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">International</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='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">856</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=' 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">947</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=' 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">(91)</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=' 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">(10)</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=bottom 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">15,688</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=' 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">14,139</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=' 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">1,549</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=' 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">11</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">Value-added services</p>
 </td>
 <td   valign=bottom style=' border: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">&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=' border: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">&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=' border: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">&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=' border: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">&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">Non-Zed(1)</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">1,138</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">761</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">377</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">50</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.35pt'>
 <p style='text-indent:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Smart Zed</i>TM</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.35pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">287</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.35pt'>
 <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:10.35pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">293</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.35pt'>
 <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:10.35pt'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(6)</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.35pt'>
 <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:10.35pt'>
 <p align=right style=';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='text-indent:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Smart Money</i></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">47</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">20</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">27</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">135</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">Mobile Banking</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">3</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">1</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">2</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">200</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">Roaming SMS and WAP<i> </i></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='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">278</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=' 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">324</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=' 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">(46)</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=' 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">(14)</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=bottom 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">1,753</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=' 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">1,399</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=' 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">354</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=' 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">25</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Total </p>
 </td>
 <td   valign=bottom 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">Php17,441</p>
 </td>
 <td   valign=bottom 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=bottom 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">Php15,538</p>
 </td>
 <td   valign=bottom 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=bottom 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">1,903</p>
 </td>
 <td   valign=bottom 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=bottom 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">12</p>
 </td>
 </tr>
</table></center></div>

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

<p style='line-height:3.0pt;border:none' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style="margin-top:0;margin-bottom:0"><i>(1)   Value-added services
developed by Smart on its own platform.</i></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">Text
messaging-related services contributed revenues of Php15,688 million in the first
half of 2005, an increase of 11%, compared to Php14,139 million in the same
period in 2004, and accounted for 90% and 91% of the total cellular data
revenues for the first half of 2005 and 2004, respectively.  The increase in
revenues from text messaging-related services resulted mainly from an increase
in domestic text messaging owing to the introduction of <i>Smart 258</i><i> Unlimited Text</i>
promotion in March 2005.  Value-added services contributed revenues of Php1,753
million in the first half of 2005, increasing by Php354 million, or 25%, from
Php1,399 million in the same period in 2004 as a result of a significant
increase in ringtone/caller ringtunes download activity as well as increased
usage emanating from <i>Smart Padala</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>Subscriber
Base, ARPU and Churn Rates</i></p>

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

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0">Prepaid subscribers
accounted for approximately 99% of our 20,789,469 subscribers as at June 30, 2005, while postpaid subscribers accounted for the remaining 1%.  The cellular
prepaid subscriber base grew by 30% to 20,521,216 as at June 30, 2005 from
15,754,873 as at June 30, 2004, whereas postpaid subscriber base decreased by
2% to 268,253 as at June 30, 2005 from 273,534 as at June 30, 2004.  </p>

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

<p style="margin-top:0;margin-bottom:0">Our net subscriber activations (reductions) for the
first half of 2005 and 2004 are as follows:</p>

<p style='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:427.5pt;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=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>Six months ended June 30,</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=' 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>
 <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=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>Decrease</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>2005</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>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>Amount</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>
 </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='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 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='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 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='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 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='margin-right:.05in;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">Prepaid</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">1,587,478</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 align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,056,653</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 align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,469,175)</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 align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(48)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:12.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Smart</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">1,235,492</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 align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,369,843</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 align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,134,351)</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 align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(48)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:12.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Piltel</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">351,986</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=' 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">686,810</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=' 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">(334,824)</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=' 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">(49)</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 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 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=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 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=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 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=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=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Postpaid</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:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(6,241)</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;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">24,557</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;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">(30,798)</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;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">(125)</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=' border: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">&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=' border:none;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=' border: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">&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=' border:none;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">Total</p>
 </td>
 <td  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' style="margin-top:0;margin-bottom:0">1,581,237</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=' 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">3,081,210</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=' 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">(1,499,973)</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=' 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">(49)</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-top:0;margin-bottom:0">Our quarterly net subscriber activations (reductions)
for the four quarters of 2004 and first two quarters of 2005 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:435.7pt;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=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>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  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>2005</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.4pt'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:9.4pt'>
 <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;height:9.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>1Q</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt;height:9.4pt'>
 <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;height:9.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2Q</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt;height:9.4pt'>
 <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;height:9.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>3Q</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt;height:9.4pt'>
 <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;height:9.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>4Q</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:9.4pt'>
 <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;height:9.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>1Q</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:9.4pt'>
 <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;height:9.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2Q</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=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 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">&nbsp;</p>
 </td>
 <td  valign=top style=' border: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">&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">&nbsp;</p>
 </td>
 <td  valign=top style=' border: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">&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">&nbsp;</p>
 </td>
 <td  valign=top style=' border: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">&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">&nbsp;</p>
 </td>
 <td  valign=top style=' border: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">&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">&nbsp;</p>
 </td>
 <td  valign=top style=' border: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">&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">Prepaid</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">1,380,339</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">&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">1,676,314</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">&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">1,433,664</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">&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">1,745,201</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">&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">1,050,638</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">&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">536,840</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:12.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Smart</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">1,162,301</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">&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">1,207,542</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">&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">797,686</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">&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">1,322,624</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">&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">920,885</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">&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">314,607</p>
 </td>
 </tr>
 <tr style='height:9.0pt'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:9.0pt'>
 <p style='margin-left:12.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Piltel</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">218,038</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:9.0pt'>
 <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 5.4pt 0in 5.4pt;
 height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">468,772</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:9.0pt'>
 <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 5.4pt 0in 5.4pt;
 height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">635,978</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:9.0pt'>
 <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 5.4pt 0in 5.4pt;
 height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">422,577</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:9.0pt'>
 <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 5.4pt 0in 5.4pt;
 height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">129,753</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:9.0pt'>
 <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 5.4pt 0in 5.4pt;
 height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">222,233</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"><b>&nbsp;</b></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">&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">&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">&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">&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">&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">&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">&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">&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">&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">&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">&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">Postpaid</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">16,866</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">&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">7,691</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">&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">10,445</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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 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">(9,485)</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">&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:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(6,357)</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">&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">116</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:.05in;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">&nbsp;</p>
 </td>
 <td  valign=top style=' border: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">&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">&nbsp;</p>
 </td>
 <td  valign=top style=' border: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">&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">&nbsp;</p>
 </td>
 <td  valign=top style=' border: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">&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">&nbsp;</p>
 </td>
 <td  valign=top style=' border: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">&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">&nbsp;</p>
 </td>
 <td  style=' border: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">&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">Total</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">1,397,205</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">&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">1,684,005</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">&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">1,444,109</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">&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">1,735,716</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">&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">1,044,281</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">&nbsp;</p>
 </td>
 <td  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">536,956</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='page-break-after:auto' style="margin-top:0;margin-bottom:0">Revenues attributable
to our cellular prepaid service amounted to Php32,439 million in the first half
of 2005, an 8% increase over the Php30,146 million earned in the same period in
2004.  Prepaid service revenues in the first half of 2005 and 2004 accounted
for 94% of voice and data revenues.  Revenues attributable to Smart&#146;s postpaid
service amounted to Php2,107 million in the first half of 2005, a 4% increase
over the Php2,028 million earned in the same period in 2004.  Postpaid service
revenues in the first half of 2005 and 2004 accounted for 6% of voice and data
revenues.</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 summarizes our cellular ARPUs for
the six months ended June 30, 2005 and 2004:</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:105.1%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <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   colspan=21 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>Six months ended
 June 30,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.95pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:10.95pt'>
 <p style=';text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:10.95pt'>
 <p align=center style='margin-right:.15in;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Gross</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:10.95pt'>
 <p align=center style='margin-right:.15in;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=5 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:10.95pt'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Increase (Decrease)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:10.95pt'>
 <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=5 valign=bottom style=' padding:0in 0in 0in 0in;
 height:10.95pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Net</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:10.95pt'>
 <p align=center style='text-align:center;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 0in 0in 0in;height:10.95pt'>
 <p align=center style='margin-right:2.9pt;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:9.15pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.15pt'>
 <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:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.15pt'>
 <p align=right style='margin-right:.15in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2005</b></p>
 </td>
 <td   rowspan=9 valign=top style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.15pt'>
 <p align=right style='margin-right:.15in;text-align:right;
 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:9.15pt'>
 <p align=right style='margin-right:.15in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:9.15pt'>
 <p align=center style='margin-right:.15in;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-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.15pt'>
 <p align=center style='margin-right:.05pt;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-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:9.15pt'>
 <p align=center style='margin-right:.45pt;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 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:9.15pt'>
 <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:9.15pt'>
 <p align=center style='margin-right:.15in;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:9.15pt'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2005</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:9.15pt'>
 <p align=center style='margin-right:.15in;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:9.15pt'>
 <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:9.15pt'>
 <p align=center style='margin-right:.15in;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.15pt'>
 <p align=center style='margin-right:2.9pt;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-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:9.15pt'>
 <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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:9.15pt'>
 <p align=center style='margin-right:2.9pt;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=';text-align:justify;text-indent:
 4.5pt;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=';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 style=';text-align:justify;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'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(Unaudited)</b></p>
 </td>
 <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   colspan=4 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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style=';text-align:justify;text-indent:
 4.5pt;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:9.1pt;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:6.2pt;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:6.2pt;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:6.2pt;text-align:right;
 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'>
 <p align=right style='margin-right:3.75pt;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:3.75pt;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:.15in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.15in;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:.15in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=4 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.15in;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:.15in;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:5.05pt;text-align:right;
 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'>
 <p align=right style='margin-right:4.5pt;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:4.5pt;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=' 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">Prepaid</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.25pt;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:6.2pt;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:6.2pt;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: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=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:3.75pt;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'>
 <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=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.15in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' 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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.15in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=4 valign=bottom style=' 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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.15in;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:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;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: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'>
 <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:
 -4.5pt;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:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php357</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php459</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.2pt;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:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php102)</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:3.75pt;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'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(22)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.15in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' 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">Php292</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.15in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=4 valign=bottom style=' 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">Php381</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.15in;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:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php89)</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;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:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(23)</p>
 </td>
 </tr>
 <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:13.5pt;margin-bottom:.0001pt;text-align:justify;text-indent:
 -4.5pt;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:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">266</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">341</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.2pt;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:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(75)</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:3.75pt;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'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(22)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.15in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' 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">216</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.15in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=4 valign=bottom style=' 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">288</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.15in;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:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(72)</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;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:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(25)</p>
 </td>
 </tr>
 <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:13.5pt;margin-bottom:.0001pt;text-align:justify;text-indent:
 -9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Prepaid &#150;
 Blended</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">335</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">433</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.2pt;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:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(98)</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:3.75pt;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'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(23)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.15in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' 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">274</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.15in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=4 valign=bottom style=' 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">361</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.15in;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:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(87)</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;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:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(24)</p>
 </td>
 </tr>
 <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:13.5pt;margin-bottom:.0001pt;text-align:justify;text-indent:
 -9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Postpaid &#150; Smart</p>
 </td>
 <td   valign=bottom 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">1,831</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,709</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.2pt;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:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">122</p>
 </td>
 <td   colspan=2 valign=bottom 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">&nbsp;</p>
 </td>
 <td   valign=bottom 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">7</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.15in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' 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">1,308</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.15in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=4 valign=bottom style=' 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">1,282</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.15in;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:5.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">26</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.05pt;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:5.05pt;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=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:13.5pt;margin-bottom:.0001pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Prepaid and Postpaid Blended</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">355</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.2pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">456</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.2pt;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:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(101)</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:3.75pt;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'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(22)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.15in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' 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">287</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.15in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=4 valign=bottom style=' 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">377</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.15in;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:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(90)</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.5pt;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:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(24)</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>
 <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='page-break-after:auto' style="margin-top:0;margin-bottom:0">ARPU is computed for
each month by dividing the revenues for the relevant services for the month by
the average of the number of subscribers at the beginning and at the end of the
month.  Gross monthly ARPU is computed by dividing the revenues for the
relevant services, gross of dealer discounts and allocated content-provider
costs, including interconnection income but excluding inbound roaming revenues,
by the average number of subscribers.  Net monthly ARPU, on the other hand, is
calculated based on revenues net of dealer discounts and allocated
content-provider costs and interconnection income net of interconnection
expense.  ARPU for any period of more than one month is calculated as the
simple average of the monthly ARPUs in that 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">Prepaid
service revenues consist mainly of charges for subscribers' actual usage of
their loads.  Gross monthly ARPU for Smart prepaid subscribers in the first
half of 2005 was Php357, a decrease of 22%, compared to Php459 in the same
period in 2004.  The decline was attributable mainly to a decrease in the
average text messaging revenue per subscriber as well as lower average outbound
local voice revenue per subscriber in the first half of 2005.  On a net basis,
ARPU in the first half of 2005 decreased by 23% to Php292 from Php381 in the
same period in 2004.  Gross monthly ARPU for <i>Talk &#145;N Text</i> subscribers in
the first half of 2005 was Php266, a decrease of 22% compared to Php341 in the
same period in 2004.  The decline was similarly attributable to a decrease in
the average text messaging revenue per subscriber as well as lower average
outbound local voice revenue per subscriber in the first half of 2005.  On a
net basis, ARPU in the first half of 2005 decreased by 25% to Php216 from Php288
in the same period in 2004.  </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">Monthly ARPU for
Smart&#146;s postpaid services is calculated in a manner similar to that of prepaid
service, except that the revenues consist mainly of monthly service fees and
charges on usage in excess of the monthly service fees.  </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">Gross monthly ARPU for
postpaid subscribers increased by 7% to Php1,831 while net monthly ARPU
increased by 2% to Php1,308, in the first half of 2005 compared to the same
period in 2004.  Prepaid and postpaid monthly gross blended ARPU was Php355 in
the first half of 2005, a decrease of 22% compared to Php456 in the same period
in 2004.  Monthly net blended ARPU decreased by 24% to Php287 in the first half
of 2005 from Php377 in the same period 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;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">Our quarterly prepaid and postpaid ARPUs
for 2005 and 2004 are as follows:</p>

<p style='text-indent:.5in;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:6.5in;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=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>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  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>Postpaid</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=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>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  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>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  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>Smart</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>Gross</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>Net</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>Gross</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>Net</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>Gross</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>Net</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>
 <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  valign=top style=' 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">Php463</p>
 </td>
 <td  valign=top style=' 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">&nbsp;</p>
 </td>
 <td  valign=top style=' 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">Php383</p>
 </td>
 <td  valign=top style=' 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">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:1.45pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php341</p>
 </td>
 <td  valign=top style=' 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">&nbsp;</p>
 </td>
 <td  valign=top style=' 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">Php287</p>
 </td>
 <td  valign=top style=' 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">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:.7pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php1,736</p>
 </td>
 <td  valign=top style=' 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">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:.7pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php1,326</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  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">455</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=' 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">380</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=' 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">341</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=' 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">289</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=' 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">1,683</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=' 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">1,239</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  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">399</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=' 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">329</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=' 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">287</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=' 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">241</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=' 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">1,780</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=' 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">1,176</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  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">395</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=' 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">328</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=' 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">275</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=' 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">220</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=' 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">1,763</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=' 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">1,402</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=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=' 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=' 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=' 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=' 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=' 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>
 </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>2005</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>
 <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  valign=top style=' 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">Php356</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">Php289</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 align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php269</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 align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php220</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 align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php1,767</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 align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php1,257</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  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:10.1pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">357</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:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">294</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:9.35pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">262</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:.1in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">212</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:.1in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,896</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:.1in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,360</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">Churn, or the rate at which existing subscribers have
their service cancelled in a given period, is computed based on total
disconnections in the period, net of reconnections in the case of postpaid
subscribers, divided by the average of the number of subscribers at the
beginning and at the end of a month, all divided by the number of months in the
same period.</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">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 contains Php50 of pre-stored air time (reduced
from Php100 in April 2004).  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; 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.  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 but had not reloaded by May 31,
this customer would not be counted as a subscriber.  The rationale for this
change stems from our observance of &#147;SIM-swapping&#148; activities in the market
whereby &#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 swap their SIM cards between mobile
operators upon full usage of the pre-stored air time, which may result in our
subscriber base reflecting a certain number of transient subscribers at any one
point in time.  In May 2005, we terminated our &#147;SIM swapping&#148; 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='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 Smart
prepaid, the average monthly churn rate for the first half of 2005 was 3.4%,
compared to 2.0% in the same period in 2004 while the average monthly churn
rate for <i>Talk &#145;N Text</i> subscribers was 4.6% in the first half of 2005
compared to 3.2% in the same period in 2004.  The increased churn in our
prepaid service can be attributed to the &#147;SIM-swapping&#148; activities described
above.  </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">The average monthly
churn rate for Smart's postpaid subscribers for the first half of 2005 was
2.3%, compared to 0.4% in the same period in 2004 as a result of increased
competition in this market segment.  Smart's policy is to redirect outgoing
calls to an interactive voice response system if the postpaid subscriber's account
is either 45 days overdue or the subscriber has exceeded the prescribed credit
limit.  If the subscriber does not make a payment within 44 days of
redirection, the account is disconnected.  Within this 44-day period, a series
of collection activities are implemented, involving the sending of a collection
letter, call-out reminders and collection messages via 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>Satellite, VSAT, Wireless Broadband and Other Services</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:auto' style="margin-top:0;margin-bottom:0">Our revenues from
satellite, VSAT, wireless broadband and other services consist mainly of
rentals received for the lease of Mabuhay Satellite's transponders and
Telesat's VSAT facilities to other companies, wireless broadband service
revenues for Meridian, charges for ACeS Philippines&#146; satellite phone service
and service revenues generated from a PLDT Global subsidiary&#146;s mobile virtual
network operations.  Gross revenues from these services for the first half of
2005 amounted to Php1,255 million, an increase of Php245 million, or 24%, from
Php1,010 million in the same period in 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"><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">Our wireless non-service revenues consist of:</p>

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

<ul style='margin-top:0in' type=disc>
 <li style='page-break-after:avoid'>Proceeds from sale of cellular handsets; and</li>
</ul>

<p style='line-height:9.0pt;page-break-after:avoid;
punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other;
border:none' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<ul style='margin-top:0in' type=disc>
 <li style='page-break-after:avoid'>Proceeds from sale of cellular SIM-packs.</li>
</ul>

<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
wireless non-service revenues decreased by Php2,944 million, or 70%, to <br>
Php1,291 million in the first half of 2005 as compared to Php4,235 million in
the same period in 2004 mainly attributable to lower handset sales.  In the
first half of 2005, activations were driven more by SIM-pack sales and SIM-swap
activities.  </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"><i>Other Income</i></h6>

<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.  Our wireless business segment
generated other income of Php57 million in the first half of 2005, a decrease
of Php78 million, or 58%, from Php135 million in the same period in 2004.</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"><i>Expenses</i></h6>

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

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0">Expenses associated
with our wireless business in the first half of 2005 amounted to Php20,459
million, a decrease of Php2,596 million, or 11%, from Php23,055 million in the
same period in 2004.  A significant portion of this decrease was attributable
to lower cost of sales, financing costs, and depreciation and amortization,
partially offset by higher cash expenses particularly rent and maintenance.  As
a percentage of our total wireless revenues and other income, expenses
associated with our wireless business decreased to 54% in the first half of
2005 from 60% in the same period in 2004.</p>

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

<p style="margin-top:0;margin-bottom:0">Cellular business expenses accounted for 96% of our
wireless business expenses while satellite, VSAT, wireless broadband and other
business expenses accounted for the remaining 4% of our wireless business
expenses in the first half of 2005 and 2004.</p>

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

<p style="margin-top:0;margin-bottom:0">The following table summarizes our wireless-related
expenses for the six months ended June 30, 2005 and 2004 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:103.12%;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=13 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>Six months ended June 30,</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=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   colspan=5 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>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>2005</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>2004</b>(1)</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"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 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>Amount</b></p>
 </td>
 <td   colspan=2 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>%</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"><b>&nbsp;</b></p>
 </td>
 <td   colspan=13 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">(Unaudited)</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"><b>(in millions)</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">&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 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">&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 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'>
 <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'>
 <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=' 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   colspan=2 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">&nbsp;</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   colspan=2 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=2 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'>
 <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">Php4,970</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:4.3pt;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'>
 <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">Php5,779</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">25</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">(Php809)</p>
 </td>
 <td   colspan=2 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   colspan=2 valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:1.45pt;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">Cost of sales</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">3,271</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:4.3pt;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'>
 <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">6,599</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">28</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">(3,328)</p>
 </td>
 <td   colspan=2 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   colspan=2 valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:1.45pt;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">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">2,255</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:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11</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">1,071</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:5.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,184</p>
 </td>
 <td   colspan=2 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">&nbsp;</p>
 </td>
 <td   colspan=2 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">111</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(2)</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">1,890</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:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9</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">1,781</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">8</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:5.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">109</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:2.9pt;
 margin-bottom:0in;margin-left:.7pt;margin-bottom:.0001pt;text-align:right;
 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'>
 <p align=right style='margin-right:4.3pt;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=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">1,702</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:4.3pt;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">1,598</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:5.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">104</p>
 </td>
 <td   colspan=2 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">&nbsp;</p>
 </td>
 <td   colspan=2 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">7</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.65pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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;
 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">1,617</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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;
 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">8</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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;
 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">1,163</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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;
 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">5</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 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;
 height:7.65pt'>
 <p align=right style='margin-right:5.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">454</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in;
 height:7.65pt'>
 <p align=right style='margin-right:5.05pt;text-align:right;
 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;
 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">39</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">Financing costs</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">1,214</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:4.3pt;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'>
 <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">2,079</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">9</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">(865)</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in'>
 <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=top style=' padding:0in 0in 0in 0in'>
 <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'>
 <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">667</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:4.3pt;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">417</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:5.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">250</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.05pt;text-align:right;
 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'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">60</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">595</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:4.3pt;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">485</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:5.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">110</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.05pt;text-align:right;
 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'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">23</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 security services</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">492</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:4.3pt;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">443</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:5.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">49</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.05pt;text-align:right;
 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'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11</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">Provisions</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">437</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:4.3pt;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:.7pt;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:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">608</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">(171)</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in'>
 <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">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(28)</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 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">1,349</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:4.3pt;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=' 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">1,032</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">4</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <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'>
 <p align=right style='margin-right:5.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">317</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.05pt;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;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">31</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 1.5pt;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">Php20,459</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 1.5pt;padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:4.3pt;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 1.5pt;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">Php23,055</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 1.5pt;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: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;height:3.5pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php2,596)</p>
 </td>
 <td   colspan=2 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   colspan=2 valign=top style=' border:none;
 border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;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">(11)</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='page-break-after:avoid' style="margin-top:0;margin-bottom:0">__________</p>

<p style='text-indent:.5in;line-height:3.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.25in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>(1)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>As restated to reflect the
effects of the changes in accounting policies, as discussed in Note 2 &#150; Summary
of Significant Accounting Policies and Practices to the accompanying unaudited
consolidated financial statements.</i></p>

<p style='margin-left:.5in;text-indent:-.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>(2)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>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">Depreciation
and amortization charges decreased by Php809 million, or 14%, to <br>
Php4,970 million in the first half of 2005 substantially due to a decrease in
the depreciable asset base as certain of our wireless assets were fully
depreciated by the end of 2004, partially offset by the effect of our full
adoption of PAS 16 which increased depreciation charges by Php336 million for
the first half of 2005.  See <i>Note 2 &#150; Summary of Significant Accounting
Policies and Practices</i> to the accompanying unaudited consolidated financial
statements.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Cost
of sales decreased by Php3,328 million, or 50%, to Php3,271 million as
activations in the first half of 2005 were driven more by SIM-pack sales and
SIM-swap activities compared to handset sales in the same period in 2004.  The
breakdown of cost of sales for our wireless business for the six months ended June 30, 2005 and
2004 is 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: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>Six months ended June 30,</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=' 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>2005</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>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>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  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  colspan=3 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">(Unaudited)</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>
 </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='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='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='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>
 <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=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cost of cellular handsets and SIM-packs sold</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">Php3,149</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">Php6,478</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">(Php3,329)</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">(51)</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' style="margin-top:0;margin-bottom:0">Cost of satellite air time and terminal units</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">122</p>
 </td>
 <td  valign=bottom 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=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">121</p>
 </td>
 <td  valign=bottom 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=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;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">1</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=' border:none;border-bottom:
 solid windowtext 1.0pt;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">1</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' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom 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">Php3,271</p>
 </td>
 <td  valign=bottom 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=bottom 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">Php6,599</p>
 </td>
 <td  valign=bottom 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=bottom 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">(Php3,328)</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=' 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">(50)</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:auto' style="margin-top:0;margin-bottom:0">Rent expenses
increased by Php1,184 million, or 111%, to Php2,255 million on account of an
increase in the number of leased lines, transmission links and higher cell site
space rentals for the increased number of cell sites.  As at June 30, 2005, we had 4,148 cell sites and 5,573 base stations, compared with 3,494 cell
sites and 4,565 base stations as at June 30, 2004.</p>

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

<p style="margin-top:0;margin-bottom:0">Compensation and benefits increased by Php109
million, or 6%, to Php1,890 million primarily due to an increase in headcount,
salaries and performance bonuses of Smart&#146;s employees.  Smart's employee
headcount increased by 4% to 5,105 as at June 30, 2005 from 4,903 as at June 30, 2004.  </p>

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

<p style="margin-top:0;margin-bottom:0">Selling and promotion expenses increased by Php104
million, or 7%, to Php1,702 million due to advertising and promotions costs
incurred to attract new subscriptions and retain existing subscribers.</p>

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

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0">Maintenance expenses
increased by Php454 million, or 39%, to Php1,617 million mainly on account of
higher utility expenses, repairs and maintenance costs due to the continued
growth in the number of cell sites and other network facilities as well as
increased fuel and electricity costs.</p>

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

<p style="margin-top:0;margin-bottom:0">Financing costs in the first half of 2005 amounted
to Php1,214 million, a decrease of Php865 million, or 42%, from Php2,079
million in the same period in 2004, primarily as a result of a 0.3% and 8% appreciation
of the average of the peso to the U.S. dollar and Japanese yen, respectively,
from December 31, 2004 to June 30, 2005.  Foreign exchange losses were recorded
in the same period in 2004 with the peso depreciation against the U.S. dollar
by 1%, partially offset by approximately 1% peso appreciation against the
Japanese yen from December 31, 2003 to June 30, 2004.  In addition, interest
income increased due to higher cash balances in 2005 as compared to 2004.  The
breakdown of our financing costs for wireless business for the six months ended
 June 30, 2005 and 2004 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:445.9pt;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>Six months ended June 30,</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>2005</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>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>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  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  colspan=3 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">(Unaudited)</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>
 </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 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='margin-left:12.6pt;text-indent:-12.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Accretion on financial liabilities</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">Php1,303</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">Php1,315</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">(Php12)</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:.7pt;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">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">905</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">904</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</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">&#150;</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 (gains) &#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">(772)</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">219</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='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(991)</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:.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(453)</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 income</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">(543)</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">(367)</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">(176)</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:.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(48)</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 (gain) 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">148</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">(84)</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">232</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">276</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:8.1pt;text-indent:-8.1pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Dividends on preferred stock subject to
 mandatory redemption</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">132</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">117</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">15</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:.05in;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='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">48</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">27</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">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:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">78</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Capitalized interest</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)</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' 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='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:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">45</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">87</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:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php1,214</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">Php2,079</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' style="margin-top:0;margin-bottom:0">(Php865)</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:.7pt;text-align:right' style="margin-top:0;margin-bottom:0">(42)</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">Taxes
and licenses increased by Php250 million, or 60%, to Php667 million mainly due
to an increase in Smart&#146;s business-related 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">Professional
and other service fees increased by Php110 million, or 23%, to Php595 million
mainly as a result of increased technical service, consultancy and payment
facility fees.</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">Insurance and security
services increased by Php49 million, or 11%, to Php492 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="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Provisions decreased by Php171 million, or 28%, to
Php437 million mainly due to a lower carrier receivable balances as of June 30,
2005 as a result of significant settlements made during 2004 and the first
quarter of 2005.  The breakdown of provisions for the six months ended June 30, 2005 and 2004 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>Six months ended June 30,</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>2005</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>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>Amount</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-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 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=' 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">(Unaudited)</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 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">Doubtful accounts</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">Php112</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">Php480</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">(Php368)</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">(77)</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' style="margin-top:0;margin-bottom:0">Write-down of inventories at net realizable value </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">325</p>
 </td>
 <td  valign=bottom 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=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">128</p>
 </td>
 <td  valign=bottom 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=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">197</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=' 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">154</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' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom 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">Php437</p>
 </td>
 <td  valign=bottom 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=bottom 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">Php608</p>
 </td>
 <td  valign=bottom 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=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php171)</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=' 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">(28)</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">Other
expenses increased by Php317 million, or 31%, to Php1,349 million due to
various business and operational-related expenses such as facility usage fees,
travel, training, communication and delivery expenses and the amortization of
intangible assets.</p>

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

<p style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">Provision for Income Tax</h3>

<p style='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 income tax increased by Php688 million, or 19%, to Php4,217 million in the
first half of 2005 from Php3,529 million in the same period in 2004 as Smart&#146;s
income tax holiday expired in the second quarter of 2004 and as Piltel&#146;s income
tax position reversed from net tax loss to net tax payable.  In the first half
of 2005, the effective tax rate for our wireless business after the reversal of
the deferred tax asset in the utilized portion of Piltel&#146;s NOLCO and the
release of certain valuation allowances was 24% compared to 23% in the same
period in 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">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 revenues by eligible GSM revenues (both gross of interconnection
revenues) where the incremental GSM revenues were derived by deducting the
Board of Investments, or BOI-prescribed base figure (Smart&#146;s gross GSM 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 holiday that was
deducted from the income tax due on GSM revenues with the difference being the
income tax due for the period.  </p>

<p style='line-height:10.0pt;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" style="margin-top:0;margin-bottom:0">Net Income</h3>

<p style='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 wireless business segment recorded a net income
of Php13,324 million in the first half of 2005, an increase of Php1,589
million, or 14%, over Php11,735 million registered in the same period in 2004
due primarily to the growth in our cellular revenues, augmented by an 11%
decrease in wireless expenses.</p>

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

<p style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">Fixed Line</h6>

<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"><b><i>Revenues and Other Income</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-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.  Total fixed line revenues
generated from our fixed line business in the first half of 2005 totaled Php24,336
million, an increase of Php121 million from Php24,215 million in the same
period in 2004.  </p>

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

<p style="margin-top:0;margin-bottom:0">The following table summarizes revenues from our
fixed line business for the six months ended June 30, 2005 and 2004 by service 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:102.96%;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=15 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>Six months ended June 30,</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   colspan=2 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=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   colspan=2 valign=bottom 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=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   colspan=2 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=4 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>Increase</b><b> </b><b>(Decrease)</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=' 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>2005</b></p>
 </td>
 <td   colspan=2 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>%</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>2004</b>(1)</p>
 </td>
 <td   colspan=2 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>%</b></p>
 </td>
 <td   colspan=2 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=2 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='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=15 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">(Unaudited)</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>(in millions)</b></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   colspan=2 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 style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 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   colspan=2 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=2 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'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <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   colspan=2 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 style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 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   colspan=2 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=2 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'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <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'>
 <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=' 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=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">&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">&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">&nbsp;</p>
 </td>
 <td   colspan=2 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">&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   colspan=2 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   colspan=2 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">&nbsp;</p>
 </td>
 <td   valign=bottom 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">&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">Local exchange</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">Php10,227</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">&nbsp;</p>
 </td>
 <td   colspan=2 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">42</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">&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">Php10,591</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">&nbsp;</p>
 </td>
 <td   colspan=2 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">44</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   colspan=2 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">(Php364)</p>
 </td>
 <td   colspan=2 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">&nbsp;</p>
 </td>
 <td   valign=bottom 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">(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">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;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,253</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">&nbsp;</p>
 </td>
 <td   colspan=2 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">26</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">&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">6,454</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">&nbsp;</p>
 </td>
 <td   colspan=2 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">27</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   colspan=2 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">(201)</p>
 </td>
 <td   colspan=2 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">&nbsp;</p>
 </td>
 <td   valign=bottom 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">(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">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;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,538</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">&nbsp;</p>
 </td>
 <td   colspan=2 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">10</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">&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">3,554</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">&nbsp;</p>
 </td>
 <td   colspan=2 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">15</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   colspan=2 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">(1,016)</p>
 </td>
 <td   colspan=2 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">&nbsp;</p>
 </td>
 <td   valign=bottom 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">(29)</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;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,589</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">&nbsp;</p>
 </td>
 <td   colspan=2 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">19</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">&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">3,036</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">&nbsp;</p>
 </td>
 <td   colspan=2 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">12</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   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,553</p>
 </td>
 <td   colspan=2 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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">51</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;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">607</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">&nbsp;</p>
 </td>
 <td   colspan=2 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;
 page-break-after:avoid' 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;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:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">473</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">&nbsp;</p>
 </td>
 <td   colspan=2 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;
 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: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;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">134</p>
 </td>
 <td   colspan=2 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">&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:5.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">28</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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   valign=bottom style=' border:none;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">24,214</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">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 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">99</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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;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">24,108</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">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 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">100</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   colspan=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">106</p>
 </td>
 <td   colspan=2 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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.05pt;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:4.5pt;text-indent:4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Other Income</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;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">122</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">&nbsp;</p>
 </td>
 <td   colspan=2 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;
 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=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'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">107</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">&nbsp;</p>
 </td>
 <td   colspan=2 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;
 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   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">15</p>
 </td>
 <td   colspan=2 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:5.05pt;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:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total Fixed Line Revenues and Other Income</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;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php24,336</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">&nbsp;</p>
 </td>
 <td   colspan=2 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;
 page-break-after:avoid' 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;
 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'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php24,215</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">&nbsp;</p>
 </td>
 <td   colspan=2 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;
 page-break-after:avoid' 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;
 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 2.25pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php121</p>
 </td>
 <td   colspan=2 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:
 double windowtext 2.25pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.05pt;text-align:right;
 page-break-after:avoid' 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>
 <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='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-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(1)   As restated to reflect the effects of the changes
in accounting policies, as discussed in Note 2 &#150; Summary of Significant
Accounting Policies and Practices to the accompanying unaudited consolidated
financial statements.</i></p>

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

<p style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">Service Revenues</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:.5in;text-indent:0in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&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:58.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&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:58.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&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:58.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&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:58.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&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="margin-top:0;margin-bottom:0">The following table summarizes key measures of our
local exchange service business segment as at and for the six months ended June 30, 2005 and 2004:</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:101.04%;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=8 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>Six months ended
 June 30,</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   colspan=2 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-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>Increase (Decrease)</b></p>
 </td>
 </tr>
 <tr>
 <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>2005</b></p>
 </td>
 <td   colspan=2 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>2004</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-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:4.5pt;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=8 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.3pt;text-align:center' style="margin-top:0;margin-bottom:0">(Unaudited)</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' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 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">&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">&nbsp;</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:2.3pt;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:2.3pt;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:2.3pt;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-left:4.5pt' style="margin-top:0;margin-bottom:0">Total
 local exchange service revenues (in millions)</p>
 </td>
 <td   colspan=2 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">Php10,227</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">Php10,591</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=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">(Php364)</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:2.9pt;text-align:right' 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' style="margin-top:0;margin-bottom:0">Number
 of fixed lines in service</p>
 </td>
 <td   colspan=2 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">2,137,813</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">2,201,257</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=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">(63,444)</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>
 </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   colspan=2 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">9,582</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">10,197</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=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">(615)</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>
 </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   colspan=2 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">223</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">216</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=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</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:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">3</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>
 </tr>
</table></center></div>

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

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0">Revenues from our
local exchange service decreased by Php364 million, or 3%, to Php10,227 million
in the first half of 2005 from Php10,591 million in the same period in 2004.
The decrease was primarily due to the 3% decline in number of fixed lines in
service and the appreciation of the peso which required us to make downward
adjustments in our monthly local service rates.  The percentage contribution of
local exchange revenues to our fixed line service revenues decreased to 42% in
the first half of 2005 compared to 44% in the same period in 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">Fixed
line net reduction in the first half of 2005 was 14,214 as against net
additions of 11,862 in the same period in 2004.  While fixed line additions
totaled 1,391 for postpaid fixed line services, prepaid fixed lines in service
declined by 15,605 in the first half of 2005.  As at June 30, 2005,
postpaid and prepaid fixed line subscribers totaled 1,784,582 and 353,231,
respectively, which accounted for approximately 83% and 17%, respectively, of our
total fixed lines in service.</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">Initially intended as
an affordable alternative telephone service for consumers under difficult
economic conditions, our prepaid fixed line services<i> </i>now form an
important part of our overall churn and credit risk exposure management and
subscriber retention strategy.  Prepaid<i> </i>subscribers are charged based on
usage at a rate of Php1.00 per minute for local calls but the rates for prepaid
and postpaid fixed line subscribers for national and international long
distance calls are the same.  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 cards.  The lower
denominated Php150 card 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's business offices, are non-refundable.</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">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 the first
half of 2005, we implemented four downward adjustments in our monthly local
service rates compared to four upward adjustments and one downward adjustment
in the same period in 2004.  The average Philippine peso to U.S. dollar rate factored
in our monthly local service rates in the first half of 2005 was Php54.94 to
US$1.00, compared to the average of Php55.75 to US$1.00 in the same period in
2004.  This change in the average peso-to-dollar rate translated to a peso
appreciation of 1.5%, which resulted in an average net decrease of 1.4% in our
monthly local service rates in the first half of 2005. </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-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The following table shows information about our
international fixed line long distance business for the six months ended June 30, 2005 and 2004:</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:104.16%;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>Six months ended June 30,</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>2005</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>2004</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 style='page-break-inside:avoid'>
 <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   colspan=7 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:.05in;text-align:
 center;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Unaudited)</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=' 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:.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>
 </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">Total international
 long distance service revenues (in millions)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">Php6,253</h4>
 </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">Php6,454</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:.7pt;text-align:right' style="margin-top:0;margin-bottom:0">(Php201)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.7pt;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:.7pt;text-align:right' style="margin-top:0;margin-bottom:0">(3)</p>
 </td>
 </tr>
 <tr style='height:.1in'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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;
 height:.1in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,165</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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;
 height:.1in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,218</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 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;
 height:.1in'>
 <p align=right style='margin-right:.7pt;text-align:right' style="margin-top:0;margin-bottom:0">(53)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:.1in'>
 <p align=right style='margin-right:.7pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:.1in'>
 <p align=right style='margin-right:.7pt;text-align:right' style="margin-top:0;margin-bottom:0">(1)</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' style="margin-top:0;margin-bottom:0">1,088</p>
 </td>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,236</p>
 </td>
 <td   valign=top 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=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.7pt;text-align:right' style="margin-top:0;margin-bottom:0">(148)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.7pt;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:.7pt;text-align:right' style="margin-top:0;margin-bottom:0">(12)</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' 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' 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>
 <td   valign=top 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=top 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=top 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=top style=' 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=' padding:0in 0in 0in 0in'>
 <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'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,155</p>
 </td>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,159</p>
 </td>
 <td   valign=top 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=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.7pt;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:.05in;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:5.05pt;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</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;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'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,084</p>
 </td>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,083</p>
 </td>
 <td   valign=top 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=top style=' padding:0in 0in 0in 0in'>
 <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'>
 <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'>
 <p align=right style='margin-right:5.05pt;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</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;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'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">71</p>
 </td>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">76</p>
 </td>
 <td   valign=top 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=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.7pt;text-align:right' 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:.05in;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:.7pt;text-align:right' style="margin-top:0;margin-bottom:0">(7)</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;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'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">15.3:1</p>
 </td>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">14.3:1</p>
 </td>
 <td   valign=top 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">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <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">&nbsp;</p>

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0">Our total
international long distance service revenues decreased by Php201 million, or 3%,
to Php6,253 million in the first half of 2005 from Php6,454 million in the same
period in 2004.  The percentage contribution of international long distance
service revenues to our fixed line service revenues decreased to 26% in the
first half of 2005 from 27% in the same period in 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">Our
revenues from inbound international long distance service decreased by Php53
million, or 1%, to Php5,165 million in the first half of 2005 from Php5,218
million in the same period in 2004 primarily due to the peso appreciation in
2005.  Our inbound international long distance call volumes in the first half
of 2005 increased by 1 million minutes to 1,084 million minutes from 1,083
million minutes in the same period in 2004, 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' style="margin-top:0;margin-bottom:0">The
2% appreciation of the average of the peso to the U.S. dollar from Php54.835
during the first half of 2005 compared to Php55.952 during the same period in
2004 contributed to the decrease 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 peso at the time of billing.</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">Our revenues from
outbound international long distance service decreased by <br>
Php148 million, or 12%, to Php1,088 million in the first half of 2005 from
Php1,236 million in the same period in 2004.  The decrease resulted from the
decline in call volumes and the appreciation of the peso as outbound
international calls are charged in U.S. dollar rates and billed to subscribers
in pesos at the prevailing exchange rates at the time of billing.</p>

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

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0">Our outbound
international long distance call volumes declined by 7% in the first half of
2005 as compared to the same period in 2004 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="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">National Long Distance Service</h2>

<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 service 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:63.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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-left:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:63.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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-left:.5in;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">The following table shows our national long distance
service revenues and call volumes for the six months ended June 30, 2005 and
2004:</p>

<p style='margin-left:.5in;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:102.08%;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>Six months ended June 30,</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' style="margin-top:0;margin-bottom:0"><b>2005</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>2004</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: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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <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   colspan=7 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.55pt;text-align:center' style="margin-top:0;margin-bottom:0">(Unaudited)</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=' 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=' 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>
 <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">Php2,538</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">Php3,554</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=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">(Php1,016)</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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:1.45pt;text-align:right' style="margin-top:0;margin-bottom:0">(29)</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">995</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">969</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=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.05pt;text-align:right' style="margin-top:0;margin-bottom:0">26</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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">3</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:auto' style="margin-top:0;margin-bottom:0">Our national long
distance service revenues decreased by Php1,016 million, or 29%, to Php2,538
million in the first half of 2005 from Php3,554 million in the same period in
2004 as a result of: (1) a decrease in average revenue per minute brought about
by our Php10 per call promotion starting February 14, 2005; and (2) the
integration of local exchanges into a single calling area.  Accordingly, the percentage
contribution of national long distance revenues to our fixed line service
revenues decreased to 10% for the first half of 2005 compared to 15% in the
same period in 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 February 14, 2005, we
launched a Php10 per call promotion to any PLDT landline subscriber nationwide
and to all Smart and <i>Talk N&#146; Text</i> subscribers.  This promotion was
launched with the objective of determining a more effective tariff structure
that would stimulate landline usage.  Under the promotion, NDD calls between
any PLDT landline subscriber nationwide and to all Smart and <i>Talk 'N Text</i>
subscribers are charged Php10 per call instead of being charged on a per minute
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">On May 12, 2005, PLDT
began offering the Php10 per call promotion with an additional Php5 per call for
the same unlimited talktime to Smart and <i>Talk &#145;N Text</i> subscribers.  PLDT
to PLDT NDD calls below the equivalent Php10 toll usage are charged based on
the regular rate 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">Our
national long distance call volumes increased by approximately 3% to 995
million minutes in the first half of 2005 from 969 million minutes in the same
period in 2004.  This was mainly due to the Php10 per call promotion currently
being offered to PLDT landline subscribers nationwide.  </p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">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 treated as local calls.</p>

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

<p style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">Data and Other Network Services</h2>

<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">Our data and other network services in the first half
of 2005 posted revenues of <br>
Php4,589 million, an increase of Php1,553 million, or 51%, from Php3,036
million in the same period in 2004.  The revenue contribution of this service
segment to our fixed line service revenues increased to 19% in the first half
of 2005 from 12% in the same period in 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">Data and other network services we currently provide
include leased lines, IP-based, packet-based and switch-based services.  These
services are used for domestic and international communications such as private
networking, broadband and narrowband internet-based data communications, and
packet-based communication.  </p>

<p style='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
our total first half 2005 revenues, leased lines accounted for 53%, IP-based
services accounted for 30%, packet-based services accounted for 12% and
switched-based services accounted for the remaining 5%, compared to 51%, 25%,
16% and 8%, respectively, in the same period in 2004.  These percentage increases
indicate a continuing demand for broadband services, particularly the high
bandwidth clear data requirements of business process outsourcing companies, or
BPOs, and call centers.  We expect this trend to continue due to growth in the
areas of e-commerce, online services and BPOs particularly among call centers,
medical transcription, animation and shared 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">Internet-based products are bannered by <i>PLDT Vibe</i>, <i>PLDT</i> <i>DSL</i> (<i>myDSL and
BizDSL</i>) and I-Gate.  <i>PLDT Vibe,</i> or PLDT&#146;s dial-up/narrowband Internet
service, is targeted for light to medium residential or individual internet
users; while <i>PLDT</i> <i>DSL </i>broadband
Internet service is targeted for heavy individual internet users as well as for
small and medium enterprises.  I-Gate, on the other hand, is targeted to
enterprises and value-added 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">As
at June 30, 2005, the number of PLDT&#146;s fixed line subscribers for <i>PLDT
Vibe </i>stood at 449,685, of which 161,899 are exclusive postpaid users,
211,917 are exclusive prepaid users, and 75,869 are both postpaid and prepaid
users.  As at June 30, 2004, <i>PLDT Vibe</i> subscribers totaled 299,950, of which 136,591 were
exclusive postpaid users, 119,265 were exclusive prepaid users, and 44,094 were
both postpaid and prepaid users.  In
addition, PLDT <i>DSL</i> has reached 68,827 subscribers as at June 30, 2005
compared with 33,576 subscribers during the same period of 2004.  I-Gate
subscription grew by 84% from a base of 93 as at June 2004 to 171 as of the
first half of 2005.</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">The continued growth
in data services revenues can be attributed to several product offerings.  The
steady demand for dedicated connection or private networking from the corporate
market using PLDT&#146;s traditional bandwidth offerings &#150; Fibernet, Arcstar,
Acacia, I-Gate, Diginet, BRAINS, among others &#150; continues to provide us with a
stable revenue source.  In addition, we provide Smart&#146;s increasing fiber optic
and leased line data requirements included under our national data 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">PLDT
expects to further generate strong demand for data connectivity after adding <i>PLDT
WeRoam</i> to its portfolio of data and other network services.  <i>PLDT WeRoam</i>,
introduced last March 10, 2005 and running on Smart&#146;s nationwide wireless
network (using GPRS, EDGE and WiFi technologies) and PLDT&#146;s extensive IP
infrastructure, provides laptop-carrying mobile employees and remote offices
under Local Area Network, wireless data connectivity to their corporate
headquarters&#146; Intranet and/or to the global Internet.</p>

<p style='text-indent:40.5pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">Miscellaneous</h2>

<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">Miscellaneous service
revenues are derived mostly from directory advertising and facilities rental.
In the first half of 2005, these revenues increased by Php134 million, or 28%,
to Php607 million from Php473 million in the same period in 2004.  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 remained flat at 2% of
our fixed line service revenues in the first half of 2005 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>Other Income</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">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 2005, our fixed line
business segment registered an increase in other income of Php15 million, or
14%, to Php122 million in the first half of 2005 from Php107 million in the
same period in 2004 mainly due to higher service and facilities fees.  </p>

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

<p style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">Expenses</h3>

<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">Expenses related to our fixed line business in the
first half of 2005 totaled <br>
Php19,486 million, a decrease of Php3,821 million, or 16%, compared to
Php23,307 million in the same period in 2004.  The decrease was primarily due
to lower financing costs partially offset by higher depreciation and
amortization, selling and promotions, and compensation and benefits expenses.
As a percentage of our total fixed line revenues, fixed line-related expenses
decreased to 80% in the first half of 2005, compared to 96% in the same period
in 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 following table shows the breakdown of our total
fixed line-related expenses for the six months ended June 30, 2005 and 2004 and the percentage of each expense item to the total:</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:102.34%;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=14 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>Six months ended June 30,</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   colspan=2 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   colspan=2 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=4 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>2005</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   colspan=2 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>2004</b>(1)</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   colspan=2 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   colspan=2 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: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>
 </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"><b>&nbsp;</b></p>
 </td>
 <td   colspan=14 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(Unaudited)</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"><b>(in millions)</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">&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 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'>
 <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">&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   colspan=2 valign=top 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=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top 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=top style=' padding:0in 0in 0in 0in'>
 <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'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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;
 height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:11.7pt'>
 <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;
 height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in;
 height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in;
 height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:11.7pt'>
 <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">Php5,704</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   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">Php5,000</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:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">21</p>
 </td>
 <td   colspan=2 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=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">Php704</p>
 </td>
 <td   colspan=2 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=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>
 </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(2)</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">3,977</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">20</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   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">3,823</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:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">16</p>
 </td>
 <td   colspan=2 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=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">154</p>
 </td>
 <td   colspan=2 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=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">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">Financing costs</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">3,127</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">16</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   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">7,799</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:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">33</p>
 </td>
 <td   colspan=2 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=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">(4,672)</p>
 </td>
 <td   colspan=2 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=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">(60)</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">1,718</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">9</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   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">1,665</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:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   colspan=2 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=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">53</p>
 </td>
 <td   colspan=2 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=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">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">Provisions</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">1,531</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">8</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   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">1,568</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:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   colspan=2 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=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">(37)</p>
 </td>
 <td   colspan=2 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=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>
 </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">866</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">5</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   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">632</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:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   colspan=2 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=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">234</p>
 </td>
 <td   colspan=2 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=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">37</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">860</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=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   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">871</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:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   colspan=2 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=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">(11)</p>
 </td>
 <td   colspan=2 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=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">(1)</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">464</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   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">535</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:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   colspan=2 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=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">(71)</p>
 </td>
 <td   colspan=2 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=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)</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">349</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   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">344</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:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   colspan=2 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=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</p>
 </td>
 <td   colspan=2 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=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">1</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 security services</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">329</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   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">364</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:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   colspan=2 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=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">(35)</p>
 </td>
 <td   colspan=2 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=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>
 </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   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">85</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:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 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=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">(85)</p>
 </td>
 <td   colspan=2 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=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">(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 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">561</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   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;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:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   colspan=2 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=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">(60)</p>
 </td>
 <td   colspan=2 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=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">(10)</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 1.5pt;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">Php19,486</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 1.5pt;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   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">Php23,307</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 1.5pt;padding:0in 0in 0in 0in;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   colspan=2 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=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;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">(Php3,821)</p>
 </td>
 <td   colspan=2 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=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;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">(16)</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='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' style="margin-top:0;margin-bottom:0"><i>(1)   As restated to reflect the effects of the changes
in accounting policies, as discussed in Note 2 &#150; Summary of Significant
Accounting Policies and Practices to the accompanying unaudited consolidated financial
statements.</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(2)   Includes salaries and benefits, incentive plan,
pension and MRP costs.</i></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='text-indent:.5in;line-height:50%' 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 Php704 million, or 14%, to <br>
Php5,704 million mainly due to higher depreciation of our regular asset base
primarily resulting from additional completed projects and the effect of our
full adoption of PAS 16 which increased our depreciation charges by Php362
million for the first half of 2005.</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">Compensation and
benefits increased by Php154 million, or 4%, to Php3,977 million mainly due to
the effect of the collective bargaining agreement-related increases on salaries
and benefits of PLDT employees and an increase in incentive plan-related
accruals partially offset by a reduction in headcount due to PLDT&#146;s MRP.</p>

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

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0">Financing costs
decreased by Php4,672 million, or 60%, to Php3,127 million due to: (1) the
strengthening of the peso relative to the U.S. dollar and Japanese yen
resulting in foreign exchange gains in the first half of 2005 as compared to
foreign exchange losses recorded during the first half of 2004; (2) recorded
gains on derivatives in the first half of 2005 as compared to recorded losses on
derivatives in the first half of 2004; and (3) lower interest on loans and
related items owing to lower debt balances in the first half of 2005 compared
with the same period in 2004.  The breakdown of our financing costs for our
fixed line business for the six months ended June 30, 2005 and 2004 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>Six months ended June 30,</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>2005</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>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>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=' 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">(Unaudited)</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='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='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='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>
 <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=' 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">Php4,737</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">Php5,574</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">(Php837)</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">(15)</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 (gains) 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">(1,335)</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">589</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">(1,924)</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">(327)</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 (gains) &#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">(603)</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">1,177</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">(1,780)</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">(151)</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 cost</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">557</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">567</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">(10)</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">(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">Capitalized interest</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">(196)</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">(250)</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">54</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">22</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 income</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">(193)</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">(98)</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">(95)</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">(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">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">134</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">181</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">(47)</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>
 <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">26</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">59</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">(33)</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">(56)</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:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php3,127</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">Php7,799</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">(Php4,672)</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">(60)</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:auto' style="margin-top:0;margin-bottom:0">Maintenance expenses
increased by Php53 million, or 3%, to Php1,718 million primarily due to higher
maintenance costs for foreign cable and wire facilities as more operating and
maintenance-related restorations were incurred in the first half of 2005 as
compared to the same period in 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">Provisions
decreased by Php37 million, or 2%, to Php1,531 million primarily on account of
a lower provision for onerous contracts by PLDT as a result of the peso
appreciation partially offset by an increase in our provision for doubtful
accounts.  We make provisions for anticipated uncollectible accounts based on
the aging profile of our accounts receivables.  PLDT&#146;s provision for doubtful
accounts for the first half of 2005 and 2004 was equivalent to 6% of its
service revenues.  The breakdown of provisions for our fixed line business for
the six months ended June 30, 2005 and 2004 is 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: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>Six months ended June 30,</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: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>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>2005</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>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-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>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=' 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">(Unaudited)</p>
 </td>
 </tr>
 <tr style='height:4.95pt'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:4.95pt'>
 <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;
 height:4.95pt'>
 <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;
 height:4.95pt'>
 <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;
 height:4.95pt'>
 <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;
 height:4.95pt'>
 <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;
 height:4.95pt'>
 <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;
 height:4.95pt'>
 <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;
 height:4.95pt'>
 <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">Doubtful accounts</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">Php1,414</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">Php1,395</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">Php19</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</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' style="margin-top:0;margin-bottom:0">Onerous contracts</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">117</p>
 </td>
 <td  valign=bottom 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=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">173</p>
 </td>
 <td  valign=bottom 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=bottom 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">(56)</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='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(32)</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' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom 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">Php1,531</p>
 </td>
 <td  valign=bottom 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=bottom 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">Php1,568</p>
 </td>
 <td  valign=bottom 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=bottom 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">(Php37)</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=' 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">(2)</p>
 </td>
 </tr>
</table></center></div>

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

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0">Selling and promotion
expenses increased by Php234 million, or 37%, to Php866 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='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Rent expenses decreased by Php11 million, or 1%, to
Php860 million due to a decrease in international leased circuits and rental
for bundled sales/value added service units.</p>

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

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0">Professional and other
service fees decreased by Php71 million, or 13%, to Php464 million due to a
decrease in number of consultants coupled with lower legal fees in the first
half of 2005 for various services, partially offset by an increase in collection
agency 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">Taxes
and licenses increased by Php5 million, or 1%, to Php349 million mainly on
account of higher business-related taxes paid in the first half of 2005 as
compared to the same period in 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">Insurance
and security services decreased by Php35 million, or 10%, to Php329 million
primarily due to lower premiums on property all-risk, industrial all-risk and
industrial fire insurance and a lower number of contracted security guards.</p>

<p style='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 decreased by Php85 million owing to an impairment of a fixed line
subsidiary&#146;s facilities in the first half of 2004; no impairment charge was
recognized in the first half of 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">Other
expenses decreased by Php60 million, or 10%, to Php561 million due to lower
office supplies consumption and printing costs resulting from PLDT&#146;s continuing
cost-containing activities, partially offset by higher contracted costs for
technical and helpdesk resources and related computer and maintenance and
in-house systems development.</p>

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

<p style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">Provision for Income Tax</h3>

<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="OLE_LINK4">Provision
for income tax increased by Php1,187 million to Php1,471 million in the first
half of 2005 from Php284 million in the same period in 2004 due to higher
income subject to tax.</a>  In the first half of 2005, our effective tax rate
was 30%.  Our effective tax rate was lower than the 32% statutory corporate tax
rate due to income already subjected to final tax; income already subjected to
lower tax rate; and equity in net income of our subsidiaries, which has already
been subjected to tax and therefore, is no longer subject to income tax.</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" style="margin-top:0;margin-bottom:0">Net Income </h3>

<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">In the first half of
2005, our fixed line business segment contributed a net income of Php3,378
million, compared to Php638 million in the same period in 2004 mainly as a
result of a decrease in fixed line-related expenses by 16% particularly
financing costs.  </p>

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

<p style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><a name="OLE_LINK32">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='text-indent:0in' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><b><i>Revenues and Other Income</i></b></h5>

<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">Our information and communications technology
business is conducted by ePLDT, a wholly-owned subsidiary 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">In
the first half of 2005, our information and communications technology business
generated revenues of Php1,587 million, an increase of Php460 million, or 41%,
from <br>
Php1,127 million in the same period in 2004.  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 our 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 revenues from our
information and communications technology business for the six months ended June 30, 2005 and 2004 by service segment:</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:464.7pt;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>Six months ended June 30,</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 </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>2005</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>2004</b>(1)</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: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>
 </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=' 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">(Unaudited)</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">Php836</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">53</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">Php551</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">49</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">Php285</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>
 </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">287</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">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=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">276</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">25</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">11</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">4</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">173</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">11</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">100</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">73</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">73</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">32</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">26</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">6</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">23</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">1,328</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">84</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">953</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">85</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">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=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">39</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='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='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=' 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">215</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">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=' 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">161</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">14</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">54</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">34</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='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='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Other Income</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">44</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">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=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">1</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">31</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: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">238</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">&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=' 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">&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=' 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">&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=' 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">&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=' 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">&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=' 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">&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">Total ICT Revenues and Other Income</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">Php1,587</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">Php1,127</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">Php460</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">41</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"><i>Call</i><i> </i><i>Center</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 are focused on developing our call center business
which capitalizes on the availability of English-speaking college graduates in
the Philippines with a strong customer service orientation.  The call
center service business is currently being undertaken by the following
wholly-owned subsidiaries of ePLDT:</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:63.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Vocativ Systems, Inc., or Vocativ,
which owns and operates a 1,300-seat call center facility with 890 customer
service representatives, or CSRs, providing customer and technical support to
its clients in the Philippines, U.S. and U.K.;  </p>

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

<p style='margin-left:63.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Parlance Systems, Inc., or
Parlance, which owns and operates a 1,230-seat call center facility with 1,300
CSRs exclusively for one of the largest direct-to-home satellite service
providers in the United States for customer support and billing requirements;
Parlance is expanding with another 670-seat call center facility in Mandaluyong
City which is expected to be completed in December 2005; and   </p>

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

<p style='margin-left:63.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
ePLDT Ventus, Inc., or Ventus,
which owns a 400-seat call center facility located in Iloilo
province and commenced commercial operations in March 2005.  CSR headcount in
Ventus-Iloilo reflected seasonal swings from a core of 50 CSRs to a high of 350
CSRs in the first half of 2005, as the company addressed seasonal requirements
of its client.  Ventus will be expanding in Metro Manila with a 270-seat call
center facility in Makati and a 640-seat call center facility in Ortigas, Pasig City to
accommodate current and new client requirements.  These facilities are expected
to be completed by October 2005 and January 2006, 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">In
addition, domestic call center projects are being undertaken by ePLDT which operates
an 80-seat facility in Makati and a 180-seat facility in Quezon City, with
a combined headcount of 330 CSRs.  The total seat count of each facility covers
workstations of CSRs and business support units that are intrinsic to the
delivery of the business.</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:63.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
inbound calls for customer care,
product inquiries, sales and technical support based on active minutes,
billable hours and full-time equivalents;</p>

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

<p style='margin-left:63.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
outbound calls for sales and
collections based on active minutes, billable hours and full-time equivalents;
and </p>

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

<p style='margin-left:63.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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-top:0;margin-bottom:0">Revenues related to our call center business in the
first half of 2005 increased by <br>
Php285 million, or 52%, to Php836 million from Php551 million in the same
period in 2004 due to the combined effects of the following:</p>

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

<p style='margin-left:63.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Vocativ&#146;s upward price adjustment
for voice and voice over internet protocol, or VoIP, and an increase in
programs being handled; </p>

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

<p style='margin-left:63.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
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-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:63.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
continuous ramp up of CSRs by 868,
or 50%, from a total of 1,730 in the first half of 2004 to 2,598 in the same
period in 2005; and</p>

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

<p style='margin-left:63.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
commencement of Ventus operations
in Iloilo in March 2005.</p>

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

<p style="margin-top:0;margin-bottom:0">Call center revenues accounted for 63% and 58% of
total information and communications technology service revenues in the first
half of 2005 and 2004, respectively.</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>Internet and gaming </i></p>

<p style='text-indent:.25in;page-break-after:avoid' 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, which include:</p>

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

<p style='margin-left:63.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
a 99.6% interest in Infocom, one
of the country&#146;s leading internet service providers.  Infocom offers consumer
prepaid and postpaid internet access, corporate leased lines, dedicated
dial-up, multi-user dial-up, broadband internet access through DSL, web
consulting and development, hosting and other value-added services; </p>

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

<p style='margin-left:63.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
a 69% interest in Digital
Paradise, Inc., or DigiPar, an internet caf&#233; business which assumed the assets
of Netopia Computer Technologies, Inc., and 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 160 branches and over 7,000 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:63.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
a 51% interest in Digital Paradise
Thailand, Inc., an affiliate of Digital Paradise, Inc. offering similar
products and services.  Digital Paradise Thailand currently has three branches in addition to its head
office all situated in Bangkok, Thailand; and</p>

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

<p style='margin-left:63.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
a 60% interest in netGames, Inc.,
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 commenced full commercial operations in February 2005.</p>

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

<p style="margin-top:0;margin-bottom:0">Internet 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:63.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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:63.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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:63.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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:63.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
one-time fees generated from
resellership of internet-related solutions such as security solutions and
domain registration; </p>

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

<p style='margin-left:63.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
sales revenues from retailing of
prepaid cards for cellular, landline and internet access;</p>

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

<p style='margin-left:63.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
franchise fees for <i>Netopia</i>
Internet caf&#233;s, including a one-time subscription fee and monthly recurring
franchise fees based on certain conditions on the franchise agreement; and </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:63.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
share in revenues of text, voice
and internet messages for cellular, landline and internet-based content and
applications.</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">Revenues from our
internet business for the first half of 2005 increased by Php11 million, or 4%,
to Php287 million from Php276 million in the same period in 2004 primarily due
to the consolidation of DigiPar in June 2004.  Our internet business revenues
accounted for 22% and 29% of service revenues from information and
communications technology business in the first half of 2005 and 2004,
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>.  Granted pioneer
status as an internet data center by the BOI, <i>Vitro&#153;</i> provides co-location services, 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 security
services such as firewall and managed firewall.  </p>

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

<p style='margin-left:.5in;text-indent:0in' style="margin-top:0;margin-bottom:0"><i>Vitro&#153;</i> revenues consist of:</p>

<p style='text-indent:0in;line-height:6.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:63.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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='text-indent:0in;line-height:6.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:63.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
installation charges and other
one-time fees associated with the set-up of services; and </p>

<p style='text-indent:0in;line-height:6.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:63.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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
the first half of 2005, <i>Vitro&#153;</i>
contributed revenues of Php173 million, an increase of Php73 million, or 73%,
from Php100 million in the same period in 2004, primarily due to an increase in
co-location revenues, server hosting and other services.   <i>Vitro&#153;</i> revenues accounted for 13% and 10% of service
revenues from information and communications technology business in the first
half of 2005 and 2004, 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:63.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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:63.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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' 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 the first half of 2005
increased to Php32 million from Php26 million in the same period in 2004
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 9 &#150; Investments</i> <i>in Associates</i> to the accompanying
unaudited consolidated financial statements 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
resellership of Microsoft products, server solutions, networking products,
storage products and data security products.  In the first half of 2005,
non-service revenues generated by our information and communications technology
business increased by Php54 million, or 34%, to Php215 million prompted by
higher revenues from sales of networking equipment and Microsoft licenses.</p>

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

<p style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><i>Other Income</i></h6>

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

<p style='page-break-after:auto' 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 to Php44 million in the
first half of 2005 from Php13 million in the same period in 2004 owing to
Infocom&#146;s sale of its <i>NOW</i> cable internet business on February 1, 2005.  </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" style="margin-top:0;margin-bottom:0"><i>Expenses</i></h6>

<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">Expenses associated
with our information and communications technology business totaled Php1,518
million in the first half of 2005, an increase of Php444 million, or 41%, from
Php1,074 million in the same period in 2004.  As a percentage of our
information and communications technology revenues, expenses related to our
information and communications technology business were at 96% and 95% for the
first half of 2005 and 2004, respectively.  </p>

<p 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
information and communications technology-related expenses for the six months
ended June 30, 2005 and 2004 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:102.32%;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=13 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>Six months ended June 30,</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   colspan=2 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   colspan=2 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>2005</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   colspan=2 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   colspan=2 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>2004</b>(1)</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: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>
 </tr>
 <tr style='page-break-inside:avoid;height:.15in'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.15in'>
 <p style='margin-left:4.5pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=13 valign=bottom style=' padding:0in 0in 0in 0in;
 height:.15in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(Unaudited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:.15in'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.15in'>
 <p style='margin-left:4.5pt;text-indent:-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;
 height:.15in'>
 <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;
 height:.15in'>
 <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;
 height:.15in'>
 <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;
 height:.15in'>
 <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;
 height:.15in'>
 <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;
 height:.15in'>
 <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;
 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;
 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;
 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;
 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;
 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'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <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'>
 <p 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: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=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'>
 <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 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:4.3pt;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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <p 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: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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Compensation and benefits(2)</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">Php625</p>
 </td>
 <td   colspan=2 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:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">41</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   colspan=2 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">Php392</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:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">36</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=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">Php233</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=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">59</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">Rent</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.95pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">208</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in;
 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;
 height:4.95pt'>
 <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;
 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;
 height:4.95pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">154</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' 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:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">14</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' 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:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">54</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 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;
 height:4.95pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' 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">Selling and promotions</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">205</p>
 </td>
 <td   colspan=2 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: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=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'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">158</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:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">15</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=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">47</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=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">30</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:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">187</p>
 </td>
 <td   colspan=2 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:5.75pt;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   colspan=2 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">148</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:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">14</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=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.5pt;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: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:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">26</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:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">149</p>
 </td>
 <td   colspan=2 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:5.75pt;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   colspan=2 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">124</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:4.3pt;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: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:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">25</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=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">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;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:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">36</p>
 </td>
 <td   colspan=2 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: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 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'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">42</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:4.3pt;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=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=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=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">(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">Taxes and licenses</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">18</p>
 </td>
 <td   colspan=2 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:5.75pt;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   colspan=2 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</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:4.3pt;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=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.5pt;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=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">80</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">Financing costs</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">8</p>
 </td>
 <td   colspan=2 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:5.75pt;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   colspan=2 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=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:4.3pt;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=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">(15)</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=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">(65)</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 security services</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</p>
 </td>
 <td   colspan=2 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:5.75pt;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   colspan=2 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">3</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:4.3pt;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=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.5pt;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=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">67</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 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:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">77</p>
 </td>
 <td   colspan=2 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:5.75pt;text-align:right' 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' 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'>
 <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'>
 <p 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:4.3pt;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=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">57</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=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">285</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 1.5pt;padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php1,518</p>
 </td>
 <td   colspan=2 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 1.5pt;padding:0in 0in 0in 0in;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;
 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;height:3.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php1,074</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 1.5pt;padding:0in 0in 0in 0in;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;
 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;height:3.5pt'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">Php444</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=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">41</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-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(1)   As restated to reflect the effects of the changes
in accounting policies, as discussed in Note 2 &#150; Summary of Significant
Accounting Policies and Practices to the accompanying unaudited consolidated
financial statements.</i></p>

<p style="margin-top:0;margin-bottom:0"><i>(2)   Includes salaries and
benefits, incentive plan, pension and 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">Compensation
and benefits increased by Php233 million, or 59%, to Php625 million mainly due
to the expansion of our call center facilities which resulted in an increase in
headcount coupled with an increase in salaries, bonuses and various incentives
of employees.</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">Rent expenses
increased by Php54 million, or 35%, to Php208 million due to the opening of
several <i>Netopia</i> branches countrywide and abroad in the first half of 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">Selling and promotion expenses increased by Php47
million, or 30%, to Php205 million mainly as a result of the consolidation of
DigiPar in June 2004 and the continuous expansion of its <i>Netopia</i>
branches nationwide in the first half of 2005 compared to the same period in
2004.  In addition, selling expenses for <i>Khan Online</i> were recognized
starting February 2005 when netGames commenced its commercial operations.  </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">Depreciation and
amortization charges increased by Php39 million, or 26%, to <br>
Php187 million primarily due to an increase in depreciable asset base in
relation to the expansion of our call center business and internet and gaming
segments.</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">Maintenance expenses
increased by Php25 million, or 20%, to Php149 million primarily due to a change
in maintenance agreement which resulted in 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='page-break-after:auto' style="margin-top:0;margin-bottom:0">Professional and other
service fees decreased by Php6 million, or 14%, to Php36 million primarily due
to lower training and shuttling expenses relating to our call center
representatives.</p>

<p style='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 Php8 million, or 80%, to Php18 million mainly on
account of documentary stamp taxes paid by ePLDT and Ventus in its issuance of
additional capital stock in the first half of 2005 as compared to the same
period in 2004.</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">Financing costs
decreased by Php15 million, or 65%, to Php8 million due to lower interest
expense on loans as debt balances decreased in the first half of 2005 as
compared to the same period in 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">Insurance
and security services increased by Php2 million, or 67%, to Php5 million
primarily due to higher premium costs and an increase in the assets insured in
the first half of 2005 as compared to same period in 2004.</p>

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

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0">Other expenses
increased by Php57 million, or 285%, to Php77 million due to various business
and operational-related expenses such as travel, supplies and communication
expenses.</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-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><i>Provision for (Benefit from) Income Tax </i></h6>

<p style='margin-bottom:0in;margin-bottom:.0001pt' 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">A provision
for income tax of Php6 million was recorded in the first half of 2005 as a
substantial portion of our ICT business are under income tax holiday.  Benefit
from income tax of Php2 million was recognized in the first six months of 2004
due to a tax loss position as non-tax deductible charges were higher during the
first half of 2004.</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" style="margin-top:0;margin-bottom:0"><i>Net Income </i></h6>

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

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0">In the first half of
2005, our information and communications technology business segment registered
a net income of Php83 million compared to a net income of Php50 million posted
in the same period in 2004 mainly on account of higher net income contribution
of our call center business, partially offset by Infocom&#146;s operating loss in
2005 and DigiPar&#146;s high operating costs due to expansion.</p>

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

<p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Liquidity and Capital Resources</b></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='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table shows our consolidated cash flows
for the six months ended June 30, 2005 and 2004 as well as consolidated capitalization and
other selected financial data as at June 30, 2005
and 2004:</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:96.88%;;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=5 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"><a name="OLE_LINK2"><b>Six months ended
 June 30,</b></a></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   colspan=2 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>2005</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;text-indent:12.75pt;
 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;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2004</b>(1)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <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"><b>&nbsp;</b></p>
 </td>
 <td   colspan=5 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">(Unaudited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <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"><b>(in millions)</b></p>
 </td>
 <td   colspan=2 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   colspan=2 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='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:11.25pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:11.25pt'>
 <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"><b>Cash Flows </b></p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in;
 height:11.25pt'>
 <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=' padding:0in 0in 0in 0in;
 height:11.25pt'>
 <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;
 height:11.25pt'>
 <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=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net cash provided by operating activities</p>
 </td>
 <td   colspan=2 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">Php34,619</p>
 </td>
 <td   colspan=2 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">&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">Php38,080</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Net cash used in investing activities</p>
 </td>
 <td   colspan=2 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">2,220</p>
 </td>
 <td   colspan=2 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">&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">13,435</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:9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Capital expenditures</p>
 </td>
 <td   colspan=2 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">7,012</p>
 </td>
 <td   colspan=2 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">&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">11,575</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">Net cash used in financing activities</p>
 </td>
 <td   colspan=2 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">23,996</p>
 </td>
 <td   colspan=2 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">&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">21,151</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:31.5pt;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Net increase in cash and cash equivalents</p>
 </td>
 <td   colspan=2 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">8,308</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:5.05pt;
 margin-bottom:0in;margin-left:.85pt;margin-bottom:.0001pt;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">3,427</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   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-left:.85pt;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=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-left:.85pt;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='margin-top:0in;margin-right:1.3pt;
 margin-bottom:0in;margin-left:5.2pt;margin-bottom:.0001pt;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'>
 <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='margin-top:0in;margin-right:1.3pt;
 margin-bottom:0in;margin-left:5.2pt;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>June 30,</b></p>
 </td>
 <td   colspan=2 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:1.3pt;
 margin-bottom:0in;margin-left:5.2pt;margin-bottom:.0001pt;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-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:0in;margin-right:1.3pt;
 margin-bottom:0in;margin-left:5.2pt;margin-bottom:.0001pt;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'>
 <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=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-left:.85pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2005</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-left:.85pt;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='margin-top:0in;margin-right:1.3pt;
 margin-bottom:0in;margin-left:5.2pt;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</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"><b>(in millions)</b></p>
 </td>
 <td   colspan=2 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">(Unaudited)</p>
 </td>
 <td   colspan=2 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=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Audited)</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"><b>Capitalization </b></p>
 </td>
 <td   colspan=2 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   colspan=2 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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Long-term portion of interest-bearing
 financial liabilities &#150; net of current portion</p>
 </td>
 <td   colspan=2 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">&nbsp;</p>
 </td>
 <td   colspan=2 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">&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">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;text-indent:22.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Long-term debt</p>
 </td>
 <td   colspan=2 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">Php102,675</p>
 </td>
 <td   colspan=2 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">&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">Php121,012</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;text-indent:22.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Obligations under capital lease</p>
 </td>
 <td   colspan=2 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">516</p>
 </td>
 <td   colspan=2 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">&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">601</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;text-indent:22.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Preferred stock subject to mandatory
 redemption</p>
 </td>
 <td   colspan=2 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">13,611</p>
 </td>
 <td   colspan=2 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">&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">14,375</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:13.5pt;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 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">116,802</p>
 </td>
 <td   colspan=2 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">&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;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">135,988</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:13.5pt;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: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=' 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=bottom style=' border:none;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 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">Current portion of interest-bearing financial
 liabilities </p>
 </td>
 <td   colspan=2 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">&nbsp;</p>
 </td>
 <td   colspan=2 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">&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">&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:22.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Notes payable</p>
 </td>
 <td   colspan=2 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">56</p>
 </td>
 <td   colspan=2 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">&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">58</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;text-indent:22.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Long-term debt maturing within one year</p>
 </td>
 <td   colspan=2 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">28,880</p>
 </td>
 <td   colspan=2 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">&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">28,018</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;text-indent:22.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Obligations under capital lease maturing
 within one year</p>
 </td>
 <td   colspan=2 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">527</p>
 </td>
 <td   colspan=2 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">&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">425</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">&nbsp;</p>
 </td>
 <td   colspan=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'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">29,463</p>
 </td>
 <td   colspan=2 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">&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;
 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">28,501</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:13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Total interest-bearing financial
 liabilities</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 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">146,265</p>
 </td>
 <td   colspan=2 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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;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">164,489</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">Total equity</p>
 </td>
 <td   colspan=2 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;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">59,304</p>
 </td>
 <td   colspan=2 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">&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;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">48,515</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;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 2.25pt;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">Php205,569</p>
 </td>
 <td   colspan=2 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">&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;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php213,004</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"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 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">&nbsp;</p>
 </td>
 <td   colspan=2 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">&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">&nbsp;</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"><b>Other Financial Data </b></p>
 </td>
 <td   colspan=2 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">&nbsp;</p>
 </td>
 <td   colspan=2 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">&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">&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">Total assets</p>
 </td>
 <td   colspan=2 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">Php263,189</p>
 </td>
 <td   colspan=2 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">&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">Php265,473</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">Property, plant and equipment - net</p>
 </td>
 <td   colspan=2 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">190,176</p>
 </td>
 <td   colspan=2 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">&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">194,525</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">Cash and cash equivalents</p>
 </td>
 <td   colspan=2 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">35,629</p>
 </td>
 <td   colspan=2 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">&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">27,321</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>
 </tr>
</table></center></div>

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

<p style='line-height:3.0pt;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;border:none' style="margin-top:0;margin-bottom:0"><i>(1) </i><i>As restated to reflect the effects of the changes in
accounting policies, as discussed in Note 2 &#150; Summary of Significant Accounting
Policies and Practices to the accompanying unaudited consolidated financial
statements.</i></p>

<p style='margin-left:13.7pt;text-indent:-13.7pt;line-height:
2.0pt;page-break-after:avoid;border:none' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></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">As at June 30, 2005, our consolidated cash and cash equivalents totaled Php35,629 million.
Principal sources of consolidated cash and cash equivalents in the first half
of 2005 were cash flows from operations amounting to Php34,619 million and
drawings from Smart&#146;s facilities aggregating Php5,471 million.  These funds
were used principally for capital outlays of Php7,012 million, total debt
principal payments of Php22,441 million and interest payments of Php5,671
million.</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 Activities</i></b></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">Our consolidated net
cash flows from operating activities in the first half of 2005 decreased by
Php3,461 million, or 9%, to Php34,619 million from Php38,080 million in the
same period in 2004 as we settled current liabilities relating to various trade
suppliers in the first six months of 2005.</p>

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

<p style="margin-top:0;margin-bottom:0">A growing portion of our cash flow is generated by
our wireless business, which accounted for 59% and 57% of our service revenues
in the first half of 2005 and 2004, respectively.  Revenues from our fixed line
and information and communications technology services accounted for 39% and
2%, respectively, of our service revenues in the first half of 2005 compared to
41% and 2%, respectively, in the same period in 2004. </p>

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

<p style="margin-top:0;margin-bottom:0">Cash flows from operating activities of our wireless
business amounted to <br>
Php20,540 million in the first half of 2005, a decrease of Php2,431 million, or
11%, compared to Php22,971 million in the same period in 2004.  Likewise, our
fixed line business contributed Php13,846 million in the first half of 2005, a
decrease of Php1,099 million, or 7%, compared to Php14,945 million in the same
period in 2004.  The decline in both our wireless and fixed line business segments
was mainly due to settlement of our outstanding current liabilities in the
first half of 2005.  Our wireless business segment accounted for 59% of our
cash flows from operating activities while our fixed line segment accounted for
41% during the first half of 2005.  We believe that our continuing strong cash
flows on a consolidated basis will allow us to defray our current liabilities
despite our current ratio being less than 1:1 as at June 30, 2005. </p>

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

<p style='page-break-after:auto;text-autospace:none' style="margin-top:0;margin-bottom:0">While
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, Smart has been
able to obtain waivers from Finnvera and certain of its lenders for each of the
dividend payments made by Smart to PLDT in 2004, 2003 and 2002 aggregating
Php16,100 million, Php6,166 million and Php1,540 million, respectively.  Smart
has also obtained the necessary consents from its lenders to make similar
distributions to PLDT in 2005, amounting to about Php20,000 million, of which
Php6,000 million and Php8,000 million was paid by Smart to PLDT in March and
June 2005, respectively.  </p>

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

<p style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">Investing Activities</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">Net cash used in investing activities in the first
half of 2005 amounted to Php2,220 million, a decrease of Php11,215 million, or
83%, compared to Php13,435 million in the same period in 2004.  This decrease resulted
from the decline in short-term investments and capital expenditures by Php5,784
million and Php4,563 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">In
the first half of 2005, short-term investments of Php3,847 million matured
relating to prepaid forward exchange contracts of Smart.  Smart did not book
additional prepaid forwards in the first half of 2005; conversely, Smart booked
short-term investments of Php1,937 million in the first half of 2004.</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">Our consolidated
capital expenditures in the first half of 2005 totaled Php7,012 million, a
decrease of Php4,563 million, or 39%, from Php11,575 million in the same period
in 2004 primarily due to Smart&#146;s lower capital spending partially offset by
PLDT&#146;s higher capital spending.  Smart's capital spending of Php3,569 million
in the first half of 2005 was used to further expand and upgrade its
transmission network facilities to increase capacity and coverage in respect of
basic and advanced cellular services.  PLDT's capital spending of Php3,118
million was principally used to finance the expansion of its fixed line data
and IP-based network services.  ePLDT and its subsidiaries&#146; capital spending of
Php305 million was used to primarily fund its <i>Vitro&#153;</i>,
DigiPar and call center business operations.  The balance represented other
subsidiaries&#146; capital spending.  Consolidated capital expenditures in the first
half of 2004 amounted to Php11,575 million, of which Php8,826 million, Php2,667
million and Php75 million were attributable to Smart, PLDT and ePLDT,
respectively.  The balance represented other subsidiaries&#146; capital spending.</p>

<p style='text-indent:.5in;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"><b><i>Financing Activities</i></b></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="margin-top:0;margin-bottom:0">On a consolidated basis, we used net cash of Php23,996
million for financing activities in the first half of 2005, compared to Php21,151
million in the same period in 2004.  The net cash used in financing activities
in the first half of 2005 was mainly attributable to debt repayments and interest
payments by PLDT in line with its ongoing debt reduction program and dividend
payments distributed to common and preferred stockholders.  </p>

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

<p style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">Debt Financing </h2>

<p style='text-indent:.5in;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">Additions to our consolidated long-term debt in the
first half of 2005 totaled <br>
Php5,471 million from Smart's drawings related to the refinancing of its Phase
5A/5B loan facilities.  Payments in respect of principal and interest of our
total debt amounted to Php22,441 million and Php5,671 million, respectively, in
the first half of 2005, of which Php13,380 million and Php4,747 million were
attributable to PLDT, respectively.</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">The following table
shows our long-term debt, including current portion as at June 30, 2005 and 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='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' 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' style="margin-top:0;margin-bottom:0"><b>June 30,</b></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>&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' style="margin-top:0;margin-bottom:0"><b>December 31,</b></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>&nbsp;</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' style="margin-top:0;margin-bottom:0"><b>Increase (Decrease)</b></p>
 </td>
 </tr>
 <tr style='height:7.6pt'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:7.6pt'>
 <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 5.4pt 0in 5.4pt;height:7.6pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2005</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:7.6pt'>
 <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 5.4pt 0in 5.4pt;height:7.6pt'>
 <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 5.4pt 0in 5.4pt;
 height:7.6pt'>
 <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 5.4pt 0in 5.4pt;height:7.6pt'>
 <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 5.4pt 0in 5.4pt;height:7.6pt'>
 <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 5.4pt 0in 5.4pt;height:7.6pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0"><b>(in millions)</b></p>
 </td>
 <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">(Unaudited)</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">&nbsp;</p>
 </td>
 <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">(Audited)</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>&nbsp;</b></p>
 </td>
 <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"><b>&nbsp;</b></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>&nbsp;</b></p>
 </td>
 <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"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p 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="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p 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="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p 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="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' 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="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="margin-top:0;margin-bottom:0">U.S. Dollar Debt:</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:8.65pt;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' 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:8.65pt;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">&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>&nbsp;</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.15pt;text-align:right' 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' style="margin-top:0;margin-bottom:0">Export
 Credit Agencies-Supported Loans</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">Php32,802</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php41,266</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(Php8,464)</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>&nbsp;</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">(21)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:8.1pt' style="margin-top:0;margin-bottom:0">Fixed
 Rate Notes</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">66,043</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">68,795</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">(2,752)</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>&nbsp;</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.15pt;text-align:right' 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='text-indent:8.1pt' style="margin-top:0;margin-bottom:0">Term
 Loans</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">16,466</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">20,492</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">(4,026)</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>&nbsp;</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">(20)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:8.1pt' style="margin-top:0;margin-bottom:0">Restructured
 Loans</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">4,917</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">4,815</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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=' 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">102</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>&nbsp;</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' 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='text-indent:8.1pt' style="margin-top:0;margin-bottom:0">Satellite
 Acquisition Loans</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">3,635</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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=' 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">4,064</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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=' 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">(429)</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>&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=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">(11)</p>
 </td>
 </tr>
 <tr style='height:6.25pt'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:6.25pt'>
 <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 5.4pt 0in 5.4pt;height:6.25pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">123,863</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:6.25pt'>
 <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=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt;height:6.25pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">139,432</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:6.25pt'>
 <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=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt;height:6.25pt'>
 <p align=right style='margin-left:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(15,569)</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:6.25pt'>
 <p align=center style='margin-top:0in;margin-right:5.75pt;
 margin-bottom:0in;margin-left:2.9pt;margin-bottom:.0001pt;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 5.4pt 0in 5.4pt;height:6.25pt'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">(11)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Japanese Yen Debt:</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:8.65pt;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' 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:8.65pt;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' 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>&nbsp;</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.15pt;text-align:right' 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' style="margin-top:0;margin-bottom:0">JBIC&#146;s
 Overseas Investment Loan</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">4,238</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">5,363</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,125)</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>&nbsp;</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">(21)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:8.1pt' style="margin-top:0;margin-bottom:0">Export
 Credit Agency-Supported Loan</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">956</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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=' 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">1,212</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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=' 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">(256)</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>&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=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">(21)</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: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">5,194</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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=' 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">6,575</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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=' 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">(1,381)</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>&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=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">(21)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Philippine Peso Debt:</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:8.65pt;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' 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:8.65pt;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' 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>&nbsp;</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.15pt;text-align:right' 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' style="margin-top:0;margin-bottom:0">Peso
 Fixed Rate Corporate Notes</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">1,575</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">1,675</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='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=center style='text-align:center' 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=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">(6)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:8.1pt' style="margin-top:0;margin-bottom:0">Term
 Loans</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">552</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">985</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(433)</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>&nbsp;</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">(44)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:8.1pt' style="margin-top:0;margin-bottom:0">Restructured
 Loans</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">371</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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=' 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">363</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">8</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>&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=right style='margin-right:5.75pt;text-align:right' 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="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' style="margin-top:0;margin-bottom:0">2,498</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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=' 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">3,023</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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=' 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">(525)</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>&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=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">(17)</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">Php131,555</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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=' 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">Php149,030</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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=' 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">(Php17,475)</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>&nbsp;</b></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:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">(12)</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">For
a complete discussion of long-term debt, see <i>Note 17 &#150; Interest-bearing
Financial Liabilities </i>to the accompanying unaudited consolidated financial
statements.</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">Our long-term debt
decreased by Php17,475 million, or 12%, to Php131,555 million as at June 30,
2005 largely due to debt amortizations and prepayments in line with PLDT&#146;s
efforts to reduce its overall debt level and also due to the appreciation of
the peso.  PLDT&#146;s debt was reduced by 13% to Php95,731 million by the end of
the first half 2005.  In addition, the debt levels of Smart, Mabuhay, ePLDT and
Maratel as at June 30, 2005 relative to the debt balances as at December 31,
2004 decreased by 8%, 11%, 30% and 55% to Php31,977 million, Php3,635 million, <br>
Php207 million and Php5 million, respectively, due to the peso appreciation and
debt amortizations during the first half of 2005.</p>

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

<p style='page-break-after:auto;text-autospace:none' style="margin-top:0;margin-bottom:0">As
at June 30, 2005, 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 f&#252;r
Wiederaufbau refinancing facility effective September 1, 2004, thus, canceling the undrawn portion of US$9 million.  As at June 30, 2005, 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="margin-top:0;margin-bottom:0">The scheduled maturities of our outstanding
consolidated long-term debt at nominal values as at June 30, 2005 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:454.5pt;margin-left:5.4pt;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <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>Year</b></p>
 </td>
 <td  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=4 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>US$ Loans</b>(1)</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>&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'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>JP&yen; Loans</b>(2)</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>&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>Peso Loans</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=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>Total</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.75pt'>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.75pt'>
 <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;height:10.75pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=12 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.75pt'>
 <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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>
 </td>
 <td  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=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  colspan=2 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=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 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>
 <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>
 <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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2005(3)</p>
 </td>
 <td  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'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$238</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">Php13,389</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">JP&yen;1,709</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">Php866</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">Php368</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">Php14,623</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 <td  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'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">337</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">18,947</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">3,418</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">1,732</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">847</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">21,526</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2007</p>
 </td>
 <td  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'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">443</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">24,882</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">3,418</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">1,732</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">73</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">26,687</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2008</p>
 </td>
 <td  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'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">118</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">6,630</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">1,709</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">866</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">61</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">7,557</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2009</p>
 </td>
 <td  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'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">271</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">15,219</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">&#150;</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">&#150;</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">52</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">15,271</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2010 and onwards</p>
 </td>
 <td  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'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">972</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">54,590</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">&#150;</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">&#150;</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">1,214</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">55,804</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='page-break-after:avoid' style="margin-top:0;margin-bottom:0">________________</p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><i>(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>The exchange rate used was
Php56.177 to US$1.00.</i></p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><i>(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>The exchange rate used was
Php0.5067 to JP</i><i>&yen;1.00.</i></p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><i>(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>July 1, 2005</i><i> through December31, 2005.</i></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">Approximately Php85,664
million principal amount of our consolidated outstanding long-term debt as at June 30, 2005 is scheduled to mature over the period from 2005 to 2009.  Of this amount,
approximately Php63,064 million is attributable to PLDT, Php18,751 million to
Smart, and the remainder to Mabuhay Satellite, Maratel and ePLDT.</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>Debt
Covenants</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">Our
debt instruments contain restrictive covenants, including covenants that could
prohibit us from paying common dividends 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.  </p>

<p style='text-indent:.25in;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">Please
see <i>Note 17 &#150; Interest-bearing Financial Liabilities </i>to the accompanying
unaudited consolidated financial statements for a detailed discussion of our
covenants.</p>

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

<p style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">Financing Requirements</h2>

<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">We believe that our available cash, including cash
flow from operations, will provide sufficient liquidity to fund our projected
operating, investment, capital expenditures and debt service requirements for
the next 12 months.  </p>

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

<p style='text-indent:.5in;text-autospace:none' style="margin-top:0;margin-bottom:0">Since 2002, we have been utilizing internally
generated cash particularly from our cellular business to reduce our overall
level of indebtedness.  In line with this objective, we have managed our
capital expenditures, reduced our investments and suspended dividend payments
to common shareholders from April 2001 to 2004.  As a result of our improving
cash flows and reduced debt levels, we have restored the payment of common
dividends in May 2005 and intend to gradually increase our dividend payout
ratio in succeeding years as we improve our leverage ratios. </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><b> </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">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='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 11, 2005, Fitch
Ratings revised the outlook on PLDT&#146;s long-term foreign currency rating to
negative from stable.  The revision in outlook reflects a similar change in
Fitch&#146;s outlook on the Republic of the Philippines&#146; &#147;BB&#148; long-term foreign currency rating to negative
from stable.  PLDT&#146;s long-term foreign currency rating, global bonds and senior
notes has been maintained at &#147;BB&#148; and convertible preferred stock remain
unchanged 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 still remains
in place.  </p>

<p style='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 3, 2005, Fitch
Ratings upgraded PLDT&#146;s long-term local currency rating to &#147;BB+&#148; with a stable
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;</p>

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

<p style='text-indent:.5in;text-autospace:none' 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
by one-notch to Ba3 from Ba2 with a stable outlook.  The rating action was
taken as part of Moody&#146;s 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's views
that there is a differential between PLDT's foreign currency rating and the
sovereign rating.  According to Moody's, PLDT's foreign currency bond rating is
a function of its own risk of default and is less likely to be subject to a
debt moratorium which the Philippine government may declare in case of an event
of default by government.</p>

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

<p style='page-break-after:auto;text-autospace:none' 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-&#147; (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-&#147; (BB minus).</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>Equity
Financing</i></p>

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

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0">PLDT raised Php131
million and Php64 million from the exercise by certain officers and executives
of stock options in the first half of 2005 and 2004, respectively.  In
addition, through our subscriber investment plan, or 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 Php2 million in the first half
of 2005 and <br>
Php4 million in the same period in 2004.  </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='page-break-after:auto;text-autospace:none' style="margin-top:0;margin-bottom:0">Cash
dividend payments in the first half of 2005 amounted to Php2,963 million, of
which Php2,372 million and Php591 million were paid to common and preferred
shareholders, respectively, compared to Php601 million in the same period in
2004, all of which were paid to preferred shareholders of PLDT.  On March 2, 2005, PLDT declared cash dividends of Php14 per common share to holders of record
as at March 31, 2005 paid on May 12, 2005. This was the first cash dividend
declaration to common shareholders in four years since April 2001.  In
addition, on May 5, 2005, PLDT declared cash dividend of Php21 per common share
to holders of record as at June 3, 2005 paid on July 14, 2005.  </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='text-indent:.5in;line-height:8.0pt;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>Contractual Obligations</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">The following table discloses our contractual
obligations outstanding as at June 30,
 2005: </p>

<p style='text-indent:.5in;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:109.18%;border-collapse:collapse'>
 <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   colspan=9 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>Payments Due by Period</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>Total</b></p>
 </td>
 <td   valign=bottom 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=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='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Within<br>
 1 year</b></p>
 </td>
 <td   valign=bottom 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=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='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2</b><b>-</b><b>3<br>
 years</b></p>
 </td>
 <td   valign=bottom 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=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='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>4</b><b>-</b><b>5<br>
 years</b></p>
 </td>
 <td   valign=bottom 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=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='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>After 5<br>
 years</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.35pt'>
 <td   style=' padding:0in 0in 0in 0in;height:7.35pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=9 style=' padding:0in 0in 0in 0in;
 height:7.35pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(Unaudited)</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>(in millions)</b></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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:5.75pt;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: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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Long-term debt (1)</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">Php141,468</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:5.75pt;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:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php29,036</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">&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">Php38,385</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">&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">Php21,173</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">&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">Php52,874</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">Long-term lease obligations:</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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:5.75pt;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: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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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='text-indent:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Operating Lease</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">3,704</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:5.75pt;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:5.75pt;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: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'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,103</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">&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">843</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">&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">1,134</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='text-indent:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Capital Lease</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">1,742</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:5.75pt;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:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">760</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">&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">524</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">&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">13</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">&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">445</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">Unconditional purchase obligations(2)</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">11,861</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:5.75pt;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:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,556</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">&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">2,249</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">&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">2,247</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">&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">2,809</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">Other long-term obligations</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">19,633</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:5.75pt;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: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: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'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,853</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">&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">13,780</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">&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>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Total contractual
 obligations</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php178,408</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:5.75pt;text-align:center' 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;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php34,976</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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php48,114</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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php38,056</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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php57,262</p>
 </td>
 </tr>
</table></center></div>

<p style='line-height:12.0pt;border:none' style="margin-top:0;margin-bottom:0">___________</p>

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

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><a
name="OLE_LINK3"><i>(1)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>Before deducting unamortized
debt discount and debt issuance cost</i></a><i>s.  </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>Based on the original Air
Time Purchase Agreement with AIL.</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>Long-term Debt </i></p>

<p style='text-indent:.5in;line-height:9.0pt;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">For a discussion of our long-term debt, see <i>Note 17 &#150; Interest-bearing Financial Liabilities </i>to the accompanying unaudited consolidated financial
statements.</p>

<p style='text-indent:.5in;line-height:9.0pt;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"><i>Long-term Operating Lease Obligations</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"><b><i>Domestic
Fiber Optic Network Submerged Plant Maintenance Agreement</i></b>.   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 related services in relation to the maintenance of
PLDT'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 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 June 30, 2005, PLDT&#146;s
aggregate remaining obligation under this agreement was approximately Php39
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>.<b>   </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 June 30, 2005, PLDT&#146;s aggregate
remaining obligation under these contracts amounted to approximately Php24
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 June 30, 2005, PLDT&#146;s aggregate remaining obligation under this
agreement was approximately <br>
Php40 million.</p>

<p style='text-indent:.5in;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"><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 Php3,325
million as at June 30, 2005 in respect of office and cell site rentals with over
3,000 lessors nationwide.  PLDT has lease obligations aggregating <br>
Php96 million as at June 30, 2005, and ePLDT has lease obligations aggregating Php180
million as at June 30, 2005 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' style="margin-top:0;margin-bottom:0"><i>Long-term
Capital Lease Obligation</i>s</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">For a discussion of our long-term capital lease
obligations, see <i>Note 17 &#150;
Interest-bearing Financial Liabilities </i>to
the accompanying unaudited consolidated financial statements.</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>Unconditional
Purchase Obligations</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"><b><i>Air
Time Purchase Agreement with AIL</i></b>.
PLDT is a party to a Founder NSP, or National Service Provider, 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 required PLDT to
purchase from AIL a minimum of US$5 million worth of air time annually over ten
years commencing on January 1, 2002, the date of 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 AIL&#146;s aggregate billing revenue is less than US$45 million in
any given year, the Air Time Purchase Agreement also 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;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">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 the other events affecting the business.</p>

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

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

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

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0">As at June 30, 2005, PLDT&#146;s aggregate remaining minimum obligation under the original Air Time
Purchase Agreement was approximately Php11,857 million.  Negotiations are
continuing with the relevant parties towards an amicable settlement of this
matter.  See <i>Note 20 &#150; Related Party Transactions</i> and <i>Note 23 &#150;
Provisions and Contingencies</i> to the accompanying unaudited consolidated
financial statements for further details relating to the Air Time Purchase
Agreement with AIL.</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"><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 totaling US$0.5 million
during the first year and US$0.3 million in each year thereafter.</p>

<p style='text-indent:.5in;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">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 <br>
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="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 extension of Addendum 6.  Under this amendment, 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 June 30, 2005,
ePLDT&#146;s aggregate remaining minimum obligation under this agreement was
approximately Php4 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"><b><i>License
Purchase Agreement with I-Contact Solutions Pte. Ltd</i></b><i>.</i>  On April
2, 2003, iPlus Intelligent Network Inc., or iPlus, a wholly-owned subsidiary of
ePLDT and the Philippines&#146; pioneer in IP-based IT response center, entered into
an Application Services Provider, or ASP, and Reseller Contract with I-Contact
Solutions Pte. Ltd., or I-Contact, of Singapore.  Under the agreement, iPlus will purchase licenses
of the CosmoCall Universe &#153; IP-based contact center solution.  CosmoCall
Universe supports multi-channel customer interactions including telephone, web
chat, web voice, web video, web collaboration, e-mail and voicemail in one high
capacity, high availability, multi-tenant platform.  CosmoCall Universe is a
complete, unified contact center suite that includes ACD, IVR, CTI, predictive
dialing, multimedia recording and a complement of other management
applications.  The aggregate value of these licenses is US$2.1 million and
these licenses will be delivered quarterly over a two-year period.  Further to
the agreement, I-Contact will appoint iPlus as the exclusive reseller and ASP
for the Philippine market and will provide iPlus with all the necessary support
in terms of sales, marketing, and technical services.  Effective <br>
March 30, 2004, I-Contact has agreed to amend the agreement and
waived all financial obligations and committed seats requirement over the
two-year period.  iPlus will pay all its remaining obligations pertaining only
to the 300 seats delivered by I-Contact.  In June 2005, iPlus committed to
purchase additional 50 predictive dialer and Cosmocorder licenses in the amount
of <br>
Php18 million.</p>

<p style='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"><i>Other
Long-term Obligations</i></p>

<p style='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"><b><i>Mandatory
Conversion and Purchase of Shares</i></b>.
As discussed in <i>Note 9 &#150; Investments in Associates</i> and <i>Note 17 &#150;
Interest-bearing Financial Liabilities</i>, as at June 30, 2005 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 2004.  </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">Each
share of Series V, VI and VII Convertible Preferred Stock is convertible at any
time at the option of the holder into one PLDT common share.  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 to PLDT
common shares.  Under a put option exercisable for 30 days, holders of common
shares received on mandatory conversion of the Series V, VI and VII Convertible
Preferred Stock will be able to require PLDT to purchase such PLDT common
shares for Php1,700 per share, US$36.132 per share, and JP&yen;4,071.89 per share,
respectively.</p>

<p style='margin-left:.25in;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">As
at June 30, 2005, 1,435,905 shares of Series V Convertible Preferred
Stock and 604,449 shares of Series VI Convertible Preferred Stock had been
converted to PLDT common shares.  The aggregate value of the put option based
on outstanding shares as at June 30, 2005 was <br>
Php19,633 million, of which Php11,706 million is payable on June 4, 2008 and
Php7,927 million on June 4, 2009, if all of the outstanding shares of Series V,
VI and VII Convertible Preferred Stocks were mandatorily converted and all the
underlying shares of common stock were put to PLDT.  As at June 30, 2005,
1,285,535 shares of Series V, 4,690,655 shares of Series VI and 3,842,000
shares of Series VII Convertible Preferred Stock remain outstanding.  The
market value of the underlying shares of common stock was Php13,549 million,
based on the market price of PLDT common shares of Php1,620 per share as at June 30, 2005.</p>

<p 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 17 &#150; Interest-bearing Financial Liabilities </i>to the
accompanying unaudited consolidated financial statements for further
discussion.</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>Commercial Commitments</i></p>

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

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0">As at June 30, 2005, our outstanding commercial commitments, in the form of letters of credit,
amounted to Php947 million.  These commitments will expire within one year.</p>

<p style='line-height:13.0pt;punctuation-wrap:hanging;
text-autospace:ideograph-numeric ideograph-other;border:none' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Quantitative and Qualitative Disclosures about Market Risks</b></p>

<p style='line-height:13.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Our operations are exposed to various risks,
including liquidity risk, foreign exchange risk and interest rate 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.</p>

<p style='line-height:13.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">Liquidity Risk Management</h3>

<p style='text-indent:.5in;line-height:13.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p 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:13.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:auto' 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:13.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="OLE_LINK9"><b><i>Foreign Exchange Risk Management</i></b></a></p>

<p style='text-indent:.5in;line-height:13.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0">As at June 30, 2005, the Philippine peso had appreciated against the U.S. dollar to Php56.177 to
US$1.00 from Php56.341 to US$1.00 as at December 31, 2004.  As at June 30, 2004, on the other hand, the peso depreciated by 1% to Php56.176 to US$1.00
from Php55.586 to US$1.00 as at December 31, 2003.  As at June 30, 2005, the Philippine peso had appreciated by 8% against the Japanese yen to Php0.5067 to JP&yen;1
from Php0.5495 to JP&yen;1 as at December 31, 2004.  Likewise, as at June 30, 2004, the peso appreciated by approximately 1% to Php0.5166 to JP&yen;1 from Php0.5193
to JP&yen;1 as at December 31, 2003.  As such, we recognized foreign exchange gains
of Php1,530 million in the first half of 2005 as compared to foreign exchange
losses of <br>
Php1,452 million recorded in the same period in 2004.  </p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><a name="OLE_LINK31">As at </a>June 30, 2005,
approximately 98% of our total consolidated debts were denominated in foreign
currencies.  Of our foreign currency-denominated debts, 4% are in Japanese yen
on a consolidated basis and the balance in U.S. dollars.  Thus, a weakening of
the peso against the U.S. dollar or Japanese yen will increase both the
principal amount of our unhedged foreign currency-denominated debts
(representing 62% of our consolidated 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
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 &#147;Liquidity and Capital Resources &#150;&#150; Financing
Activities &#150;&#150; Covenants&#148; above and <i>Note 17 &#150; Interest-bearing Financial
Liabilities </i>to the accompanying unaudited consolidated financial
statements.</p>

<p style='text-indent:.5in;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">To manage our 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.</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">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. In order to manage hedge costs of these
contracts, we utilize structures that include credit-linkage with PLDT as the
reference entity, combination of currency option contracts, and fixed to
floating coupon only swap agreements.  Accounted as either cash flow hedges or
transactions not designated as hedges, changes in the fair value of these
instruments are recognized as cumulative translation adjustments in equity
until the hedged item is recognized in earnings or directly to income for the
period. As at June 30, 2005, 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;879 million; US$550 million; and <br>
US$263 million, respectively.  Smart&#146;s has no outstanding forward foreign
exchange contracts as at June 30, 2005. </p>

<p style='text-indent:0in;page-break-after:auto' 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 further discussions of these contracts, see <i>Note
24 &#150;Financial Assets and Liabilities &#150; Derivative Financial Instruments </i>to
the accompanying unaudited consolidated financial statements.</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>Interest Rate Risk Management</i></b></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="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. As at
 June 30, 2005, PLDT&#146;s outstanding interest rate swap contracts amounted to
US$125 million. For further discussions of these contracts, see <i>Note 24 &#150;
Financial Assets and Liabilities &#150; Derivative Financial Instruments </i>to the
accompanying unaudited consolidated financial statements.</p>

<p style='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
make use of hedging instruments and structures solely for reducing or
eliminating financial risks associated with our liabilities and not for trading
or speculative purposes.</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"><b>Impact of Inflation and Changing Prices</b></p>

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

<p style='page-break-after:auto' 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 the first half of 2005 was 7.1%, compared
to 5.1% in the same period in 2004.</p>

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

<p align=center style='text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>OTHER INFORMATION</b></p>

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

<p style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><i>Related Party Transactions</i></h6>

<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">In the ordinary course of business, a number of
companies related to but outside of the consolidated PLDT Group are engaged in
arm&#146;s-length intercompany transactions.  We believe that the terms of these
transactions are comparable with those available from unrelated 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">Transactions to which PLDT or its subsidiaries is 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 a direct
or indirect material interest in PLDT or its subsidiaries, as at June 30, 2005
and December 31, 2004 and for the six months ended June 30, 2005 and 2004 are
as follows:</p>

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

<p style="margin-top:0;margin-bottom:0"><i>Agreements with NTT
Communications and/or its Affiliates </i>&#151;
agreements under which (1) NTT Communications provides advisory services for
various business areas of PLDT; (2) NTT World Engineering Marine Corporation
provides maintenance services to PLDT&#146;s DFON; (3) PLDT is licensed to market
managed data and other services using NTT Communications&#146; Arcstar brand; and
(4) PLDT and NTT Communications agreed to cooperative arrangements for
conventional international telecommunication services.  Total fees under these
agreements totaled <br>
Php114 million and Php146 million for the six months ended June 30, 2005 and
2004, respectively.  PLDT&#146;s outstanding obligations under these agreements
amounted to Php55 million and Php49 million as at June 30, 2005 and December 31, 2004,
respectively.</p>

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

<p style="margin-top:0;margin-bottom:0"><i>Agreements between Smart
and </i><i>Asia</i><i> Link B.V</i>. &#151;
agreements under which Asia Link undertakes to provide technical support
services and assistance in the operations and maintenance of Smart&#146;s cellular
business.  Total fees under these agreements totaled Php278 million and Php239
million for the six months ended June 30,
 2005 and 2004, respectively.  Under
these agreements, Smart had outstanding payables of Php284 million and Php267
million as at June 30, 2005 and December
 31, 2004, respectively.  Asia Link is a
subsidiary of the First Pacific Group.</p>

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

<p style="margin-top:0;margin-bottom:0"><i>Agreements relating to
insurance companies</i> &#151; Gotuaco del
Rosario and Associates, or Gotuaco, acts as the broker for certain insurance
companies to cover certain insurable 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 these agreements amounted
to Php268 million and Php238 for the six months ended June 30, 2005 and 2004,
respectively.  Two directors of PLDT have direct/indirect interests in or serve
as a director/officer of Gotuaco and Malayan.</p>

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

<p align=left style='text-align:left' style="margin-top:0;margin-bottom:0">For a more detailed discussion of the related party transactions
enumerated above, see <i>Note 20 &#150;Related Party Transactions</i> to the
accompanying<i> </i>unaudited<i> </i>consolidated financial statements. </p>

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

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

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

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

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  cellpadding=0 cellspacing=0 align=left>
 <tr>
 <td  height=15></td>
 </tr>
 <tr>
 <td></td>
 <td><img width=218 height=72 src="pldt6k2q2005001.jpg"></td>
 </tr>
</table></center></div>

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

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

<br clear=ALL>

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

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

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

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">AS AT JUNE 30,
 2005 (UNAUDITED) AND DECEMBER 31, 2004
(AUDITED)</p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">AND FOR THE SIX MONTHS ENDED JUNE 30, 2005 AND 2004
(UNAUDITED)</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>

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

<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 style='punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">CONSOLIDATED
BALANCE SHEETS</p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>(in million pesos, except par value amounts)</b></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:100.66%;border-collapse:collapse'>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p 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=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>June 30,<br>
 2005</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.5pt;
 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-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">December 31, 2004</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"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>(Unaudited)</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">&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:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(Audited)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid;height:17.05pt'>
 <td   colspan=4 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;height:17.05pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b><u>ASSETS</u></b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:17.35pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:17.35pt'>
 <p style="margin-top:0;margin-bottom:0"><b>Noncurrent Assets</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:17.35pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:17.35pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:17.35pt'>
 <p align=right style='text-align:right' 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 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Property, plant and equipment (Notes 2, 8 and 17)</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"><b>190,176</b></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">194,525</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">Investments in associates (Notes 2, 9 and 17)</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"><b>12</b></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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Investments-available-for-sale (Notes 2 and 24)</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"><b>109</b></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">104</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">Investment properties (Notes 2 and 10)</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"><b>732</b></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">743</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">Goodwill and intangible assets (Notes 2, 3 and 11)</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"><b>3,727</b></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">3,864</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">Deferred income tax assets (Notes 2 and 6)</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"><b>12,291</b></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">12,738</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">Derivative assets (Notes 2 and 24)</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"><b>3,694</b></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">4,116</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">Notes receivable (notes 2,
 12 and 24)</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"><b>346</b></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">286</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">Prepayments (Note 17)</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"><b>1,207</b></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">997</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">Other noncurrent assets (Note 2)</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>1,063</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">&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">1,237</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.05pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:11.05pt'>
 <p style='margin-left:22.9pt' style="margin-top:0;margin-bottom:0">Total Noncurrent Assets </p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:11.05pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>213,357</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:11.05pt'>
 <p align=right 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:11.05pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">218,618</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:15.7pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:15.7pt'>
 <p style="margin-top:0;margin-bottom:0"><b>Current Assets</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:15.7pt'>
 <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;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:15.7pt'>
 <p align=right 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-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:15.7pt'>
 <p 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=bottom style=' padding:0in 0in 0in 0in'>
 <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">Cash and cash
 equivalents (Notes 2, 13 and 24)</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"><b>35,629</b></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">27,321</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">Short-term investments (Notes 2 and 24)</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"><b>27</b></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">3,873</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">Trade and other receivables (Notes 2, 14 and 24)</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"><b>8,457</b></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">10,404</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">Inventories and supplies (Notes 2 and 15)</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"><b>2,255</b></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">2,140</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">Derivative assets (Notes 2 and 24)</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"><b>217</b></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">335</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">Prepayments (Note 17)</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"><b>1,474</b></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">1,271</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">Other current assets (Notes 2 and 20)</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>1,773</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">&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">1,511</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.75pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:10.75pt'>
 <p style='margin-left:22.9pt' style="margin-top:0;margin-bottom:0">Total Current
 Assets </p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:10.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>49,832</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:10.75pt'>
 <p align=right 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:10.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">46,855</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:12.1pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:12.1pt'>
 <p 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:12.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>263,189</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:12.1pt'>
 <p align=right 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:12.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">265,473</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.85pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;height:11.85pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;height:11.85pt'>
 <p align=right style='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 1.5pt;padding:0in 0in 0in 0in;height:11.85pt'>
 <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 1.5pt;padding:0in 0in 0in 0in;height:11.85pt'>
 <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:17.35pt'>
 <td   colspan=4 valign=bottom style=' padding:0in 0in 0in 0in;
 height:17.35pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><a name=equity></a><b><u>EQUITY AND LIABILITIES</u></b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:.3in'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.3in'>
 <p style="margin-top:0;margin-bottom:0"><b>Equity</b><b> </b>(Notes 2, 7 and 16)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.3in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:.3in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:.3in'>
 <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=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p style='margin-left:13.9pt;text-indent:-13.9pt' style="margin-top:0;margin-bottom:0">Preferred stock, Php10 par value, authorized 822,500,000 shares;
 issued and <br>
 outstanding 448,708,863 as at June 30, 2005 and 449,682,057 shares as at <br>
 December 31, 2004</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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"><b>4,487</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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">4,497</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.7pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:11.7pt'>
 <p style='margin-left:13.9pt;text-indent:-13.9pt' style="margin-top:0;margin-bottom:0">Common stock, Php5 par value, authorized 234,000,000 shares;
 issued and <br>
 outstanding 171,363,153 as at June 30, 2005 and 170,213,722 shares as at <br>
 December 31, 2004 </p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:11.7pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>857</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:11.7pt'>
 <p align=right 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:11.7pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">851</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.5pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.5pt'>
 <p style='margin-left:13.9pt;text-indent:-13.9pt' style="margin-top:0;margin-bottom:0">Stock options issued (Note 21)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>124</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height: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=bottom style=' padding:0in 0in 0in 0in;
 height:4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">181</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.5pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.5pt'>
 <p style='margin-left:13.9pt;text-indent:-13.9pt' style="margin-top:0;margin-bottom:0">Equity portion of convertible preferred stock (Note 17)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,264</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height: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=bottom style=' padding:0in 0in 0in 0in;
 height:4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,459</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.5pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.5pt'>
 <p style="margin-top:0;margin-bottom:0">Capital in excess of par value</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>51,941</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height: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=bottom style=' padding:0in 0in 0in 0in;
 height:4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">50,528</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.5pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.5pt'>
 <p style="margin-top:0;margin-bottom:0">Deficit (Note 7)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(117)
 </b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height: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=bottom style=' padding:0in 0in 0in 0in;
 height:4.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(10,220)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.5pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.5pt'>
 <p style="margin-top:0;margin-bottom:0">Cumulative translation adjustments (Note
 24)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(134)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height: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=bottom style=' padding:0in 0in 0in 0in;
 height:4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">362</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.05pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:11.05pt'>
 <p style="margin-top:0;margin-bottom:0">                Total Equity Attributable to Equity Holders</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:11.05pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>58,422</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:11.05pt'>
 <p align=right 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-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:11.05pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">47,658</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:12.6pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:12.6pt'>
 <p style="margin-top:0;margin-bottom:0">Minority interest</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:12.6pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>882</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:12.6pt'>
 <p align=right 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:12.6pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">857</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.75pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='margin-left:22.9pt' style="margin-top:0;margin-bottom:0">Total Equity</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>59,304</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right 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:6.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">48,515</p>
 </td>
 </tr>
</table></center></div>

<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 style='punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">CONSOLIDATED
BALANCE SHEETS (<i>continued</i>)</p>

<p style='punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">(in million pesos, except par value amounts)</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:107.14%;;border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:16.6pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;height:16.6pt'>
 <p 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;height:16.6pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>June 30, <br>
 2005</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in;height:16.6pt'>
 <p align=right 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-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;height:16.6pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">December 31, 2004</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"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>(Unaudited)</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">&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:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(Audited)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid;height:16.6pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:16.6pt'>
 <p style="margin-top:0;margin-bottom:0"><b>Noncurrent Liabilities</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:16.6pt'>
 <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;
 height:16.6pt'>
 <p align=right 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:16.6pt'>
 <p 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:6.3pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.3pt'>
 <p style="margin-top:0;margin-bottom:0">Interest-bearing financial liabilities - net of current
 portion (Notes 2, 8, 17, 22 and 24)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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"><b>116,802</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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">135,988</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.5pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.5pt'>
 <p style="margin-top:0;margin-bottom:0">Deferred income tax liabilities (Notes 2 and 6)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,955</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height: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=bottom style=' padding:0in 0in 0in 0in;
 height:4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,943</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.65pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.65pt'>
 <p style="margin-top:0;margin-bottom:0">Derivative liabilities (Notes 2 and 24)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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"><b>4,755</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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;
 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">5,903</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.3pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.3pt'>
 <p style='margin-left:13.9pt;text-indent:-13.9pt' style="margin-top:0;margin-bottom:0">Provision
 for onerous contracts and assessments - net of current portion <br>
 (Notes 20, 22 and 23)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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"><b>4,068</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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">3,951</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:.1in'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.1in'>
 <p style='margin-left:13.9pt;text-indent:-13.9pt' style="margin-top:0;margin-bottom:0">Pension and
 other benefits (Notes 2 and 21)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.1in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>3,702</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.1in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,908</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.55pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p style='margin-left:13.9pt;text-indent:-13.9pt' style="margin-top:0;margin-bottom:0">Customers&#146;
 deposits</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,142</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right 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:8.55pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,174</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.55pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p style='margin-left:13.9pt;text-indent:-13.9pt' style="margin-top:0;margin-bottom:0">Other
 noncurrent liabilities (Notes 2, 8, 14 and 18)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>8,641</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right 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:8.55pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,159</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:12.1pt'>
 <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:12.1pt'>
 <p style='margin-left:22.9pt' 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;
 padding:0in 0in 0in 0in;height:12.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>142,065</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:12.1pt'>
 <p align=right 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 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:12.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">160,026</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:15.85pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:15.85pt'>
 <p style="margin-top:0;margin-bottom:0"><b>Current Liabilities</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:15.85pt'>
 <p align=right style='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;
 height:15.85pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in;
 height:15.85pt'>
 <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:8.1pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p style="margin-top:0;margin-bottom:0">Accounts payable (Notes 2 and 24)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>5,300</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p align=right 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:8.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,029</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:.1in'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.1in'>
 <p style='margin-left:13.9pt;text-indent:-13.9pt' style="margin-top:0;margin-bottom:0">Accrued
 expenses and other current liabilities (Notes 2, 17, 19, 20, 24 and 25)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.1in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>16,104</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.1in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14,811</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.5pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.5pt'>
 <p style="margin-top:0;margin-bottom:0">Unearned revenues (Note 2)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,639</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height: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=bottom style=' padding:0in 0in 0in 0in;
 height:4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,892</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:5.85pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:5.85pt'>
 <p style="margin-top:0;margin-bottom:0">Derivative liabilities (Notes 2 and 24)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:5.85pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>229</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:5.85pt'>
 <p align=right 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:5.85pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">474</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:5.85pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:5.85pt'>
 <p style="margin-top:0;margin-bottom:0">Current portion of provision for onerous contracts and assessments
 (Notes 20 and 23)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:5.85pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>699</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:5.85pt'>
 <p align=right 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:5.85pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">597</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:5.85pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:5.85pt'>
 <p style="margin-top:0;margin-bottom:0">Current portion of interest-bearing
 financial liabilities (Notes 2, 8, 17, 22 and 24)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:5.85pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>29,463</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:5.85pt'>
 <p align=right 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:5.85pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">28,501</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.05pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.05pt'>
 <p style="margin-top:0;margin-bottom:0">Dividends payable (Notes 2, 7, 17 and 24)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.05pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4,366</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.05pt'>
 <p align=right 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:4.05pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">652</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.1pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p style="margin-top:0;margin-bottom:0">Income tax payable (Notes 2 and 6)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>3,020</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p align=right 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:8.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,976</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.75pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='margin-left:22.9pt' style="margin-top:0;margin-bottom:0">Total Current
 Liabilities</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>61,820</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right 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-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">56,932</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:13.45pt'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 padding:0in 0in 0in 0in;height:13.45pt'>
 <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 2.25pt;border-right:none;
 padding:0in 0in 0in 0in;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>263,189</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;
 padding:0in 0in 0in 0in;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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 padding:0in 0in 0in 0in;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">265,473</p>
 </td>
 </tr>
</table></center></div>

<p style='line-height:30%' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style="margin-top:0;margin-bottom:0"><i>See accompanying Notes to
Unaudited Consolidated Financial Statements.</i></p>

<p style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></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='punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' 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 STATEMENTS OF INCOME</b></p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>(in million pesos, except per share amounts)</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:100.66%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:9.0pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-top:3.0pt;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=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Six Months Ended June 30,</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:9.0pt'>
 <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   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:9.0pt'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Three Months Ended June 30,</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.8pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.8pt'>
 <p style='margin-top:3.0pt;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:9.8pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2005</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:9.8pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 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;padding:0in 0in 0in 0in;height:9.8pt'>
 <p align=right 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:9.8pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2005</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.8pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2004</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-top:3.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=5 valign=bottom style=' border:none;
 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">(Unaudited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:16.2pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:16.2pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>INCOME </b>(Notes 2 and
 4)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:16.2pt'>
 <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;
 height:16.2pt'>
 <p align=right 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:16.2pt'>
 <p align=right 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:16.2pt'>
 <p align=right 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:16.2pt'>
 <p 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=bottom style=' padding:0in 0in 0in 0in'>
 <p 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:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>59,522</b></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">57,841</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"><b>30,161</b></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">29,734</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">Non-service revenues (Note
 5)</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"><b>1,422</b></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">4,311</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"><b>607</b></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">1,680</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Other income </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"><b>194</b></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">147</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"><b>119</b></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 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;
 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;
 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>61,138</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">62,299</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">&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;
 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>30,887</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">31,476</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:14.35pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:14.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>EXPENSES </b>(Notes 2
 and 4)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:14.35pt'>
 <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;
 height:14.35pt'>
 <p align=right 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:14.35pt'>
 <p align=right 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:14.35pt'>
 <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=' padding:0in 0in 0in 0in;
 height:14.35pt'>
 <p 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=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Depreciation and
 amortization (Note 8)</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"><b>10,861</b></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">10,927</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"><b>5,305</b></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">5,590</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">Compensation and benefits
 (Notes 5 and 21)</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"><b>6,492</b></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">5,996</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"><b>3,406</b></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">3,012</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">Financing costs (Note 5)</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"><b>4,349</b></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">9,901</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"><b>4,282</b></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">5,483</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">Maintenance (Note 20)</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"><b>3,320</b></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">2,776</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"><b>1,776</b></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">1,465</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">Cost of sales (Notes 5, 20
 and 22)</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"><b>3,271</b></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">6,599</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"><b>1,267</b></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">2,730</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">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"><b>2,770</b></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">2,386</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"><b>1,318</b></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">1,261</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">Provisions (Notes 5, 14,
 15, 20 and 22)</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"><b>1,968</b></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">2,176</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"><b>1,369</b></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">840</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">Professional and other
 service fees (Note 20)</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"><b>1,043</b></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">1,005</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"><b>629</b></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">565</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">Taxes and licenses (Note
 23)</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"><b>1,034</b></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">771</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"><b>460</b></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">384</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">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"><b>954</b></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">1,060</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"><b>324</b></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">511</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">Insurance and security
 services (Note 20)</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"><b>825</b></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">810</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"><b>414</b></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">412</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">Asset impairment (Notes 8
 and 9)</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=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">85</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"><b>&#150;</b></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">&#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">Other expenses (Notes 5 and
 20)</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>1,740</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">1,548</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">&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>752</b></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:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">681</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.6pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;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:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>38,627</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">46,040</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right 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:7.6pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>21,302</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">22,934</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-top:3.0pt;margin-right:0in;margin-bottom:
 0in;margin-left:9.35pt;margin-bottom:.0001pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>INCOME BEFORE INCOME TAX</b></p>
 </td>
 <td   valign=bottom style=' border: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>22,511</b></p>
 </td>
 <td   valign=bottom style=' border: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">16,259</p>
 </td>
 <td   valign=bottom style=' border: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">&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;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>9,585</b></p>
 </td>
 <td   valign=bottom style=' border: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">8,542</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:13.95pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:13.95pt'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>PROVISION FOR INCOME TAX</b> (Notes 2 and 6)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:13.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>5,694</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:13.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,811</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:13.95pt'>
 <p align=right style='margin-left:.4pt;text-align:right;
 text-indent:-.35pt;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:13.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,151</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:13.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,775</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:13.95pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:13.95pt'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>NET INCOME FOR THE PERIOD</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:13.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>16,817</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:13.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,448</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:13.95pt'>
 <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=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:13.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>7,434</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:13.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,767</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-top:3.0pt;margin-right:0in;margin-bottom:
 0in;margin-left:9.35pt;margin-bottom:.0001pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>ATTRIBUTABLE TO:</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-left:.4pt;text-align:right;
 text-indent:-.35pt;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'>
 <p align=right 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'>
 <p align=right 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'>
 <p align=right style='margin-left:.4pt;text-align:right;
 text-indent:-.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-left:.4pt;text-align:right;
 text-indent:-.35pt;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 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:.05pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Equity holders</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"><b>16,785</b></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">12,423</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"><b>7,424</b></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">6,737</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-left:9.35pt;text-indent:.05pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Minority interest</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>32</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">25</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>&nbsp;</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"><b>10</b></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:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">30</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:13.45pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:13.45pt'>
 <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:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;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>16,817</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;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">12,448</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;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;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;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>7,434</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;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">6,767</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:13.45pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Earnings Per Common
 Share</b> (Note 7)</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 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;
 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;
 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;
 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=top style=' border:none;padding:0in 0in 0in 0in;
 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>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p style='margin-left:9.35pt;text-indent:.05pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Basic</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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"><b>94.00</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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">68.78</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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   valign=bottom style=' padding:0in 0in 0in 0in;
 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"><b>41.22</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 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">37.48</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:.1in'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:.1in'>
 <p style='margin-left:9.35pt;text-indent:.05pt;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;padding:0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>88.83</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">68.00</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;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   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>41.22</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">36.70</p>
 </td>
 </tr>
</table></center></div>

<p style='line-height:30%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style="margin-top:0;margin-bottom:0"><i>See accompanying Notes to</i><i> Unaudited Consolidated Financial Statements.</i></p>

<p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

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

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

<p align=center style='margin-top:3.0pt;margin-right:.7pt;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;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='text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p align=center style='margin-right:.9pt;text-align:center;
page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>CONSOLIDATED
STATEMENTS OF CHANGES IN EQUITY</b></p>

<p align=center style='margin-right:.9pt;text-align:center;
page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(in million 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>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:102.0%;border-collapse:collapse'>

 <tr style='page-break-inside:avoid'>
 <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 style='margin-top:3.0pt;;margin-bottom:
 0in;margin-left: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'>
 <p align=center style='text-align:center;page-break-after:
 avoid' 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'>
 <p align=center style='text-align:center;page-break-after:
 avoid' 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'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Stock Options
 Issued</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=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Equity Portion of
 Convertible Preferred 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'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' 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'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Retained<br>
 Earnings (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'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Cumulative
 Translation Adjustments</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=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Equity Attributable
 to Equity Holders of 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;
 padding:0in 0in 0in 0in'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Minority Interest</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=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Total <br>
 Equity</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:2.5pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:2.5pt'>
 <p style='margin-top:3.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=10 valign=top style=' border:none;
 padding:0in 0in 0in 0in;height:2.5pt'>
 <p align=center style='margin-top:3.0pt;margin-right:4.3pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Unaudited)</p>
 </td>
 </tr>

 <tr style='height:.15in'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.15in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Balances at January 1, 2004 (As restated)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.15in'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,505</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.15in'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">847</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.15in'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">286</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.15in'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,536</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.15in'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">49,690</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.15in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(36,736)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.15in'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">549</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.15in'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">20,677</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.15in'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">771</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.15in'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">21,448</p>
 </td>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Changes in equity:</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <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=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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   valign=bottom style=' padding:0in 0in 0in 0in;
 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   valign=bottom style=' padding:0in 0in 0in 0in;
 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   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <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=' padding:0in 0in 0in 0in;
 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   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <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=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <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=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Net income for the period</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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   valign=bottom style=' padding:0in 0in 0in 0in;
 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   valign=bottom style=' padding:0in 0in 0in 0in;
 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   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <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='height:9.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p style='margin-left:13.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">As previously reported</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,008</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,008</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">18</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,026</p>
 </td>
 </tr>
 <tr style='height:9.45pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.45pt'>
 <p style='margin-left:22.9pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Effect of changes in accounting policies
 <br>
 (Note 2)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:2.15pt;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;height:9.45pt'>
 <p align=right style='margin-right:2.15pt;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;height:9.45pt'>
 <p align=right style='margin-right:2.15pt;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;height:9.45pt'>
 <p align=right style='margin-right:2.15pt;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;height:9.45pt'>
 <p align=right style='margin-right:2.15pt;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;height:9.45pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">415</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:2.15pt;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;height:9.45pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 415</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 422</p>
 </td>
 </tr>
 <tr style='height:8.5pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:8.5pt'>
 <p style='margin-left:13.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">As restated</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:8.5pt'>
 <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>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:8.5pt'>
 <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>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:8.5pt'>
 <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>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:8.5pt'>
 <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>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:8.5pt'>
 <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>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:8.5pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,423</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:8.5pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:8.5pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,423</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:8.5pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">  25</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:8.5pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,448</p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Cash dividends</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-right:2.15pt;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:8.55pt'>
 <p align=right style='margin-right:2.15pt;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:8.55pt'>
 <p align=right style='margin-right:2.15pt;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:8.55pt'>
 <p align=right style='margin-right:2.15pt;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:8.55pt'>
 <p align=right style='margin-right:2.15pt;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:8.55pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(708)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-right:2.15pt;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:8.55pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(708)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-right:2.15pt;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:8.55pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(708)</p>
 </td>
 </tr>
 <tr style='height:9.45pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Currency translation differences (Note
 24)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p align=right style='margin-right:2.15pt;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:9.45pt'>
 <p align=right style='margin-right:2.15pt;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:9.45pt'>
 <p align=right style='margin-right:2.15pt;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:9.45pt'>
 <p align=right style='margin-right:2.15pt;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:9.45pt'>
 <p align=right style='margin-right:2.15pt;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:9.45pt'>
 <p align=right style='margin-right:2.15pt;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:9.45pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">  13</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p align=right style='margin-right:2.15pt;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:9.45pt'>
 <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='height:8.55pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Issuance of capital stock - net (Note
 16)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <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=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-right:2.15pt;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:8.55pt'>
 <p align=right style='margin-right:2.15pt;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:8.55pt'>
 <p align=right style='margin-right:2.15pt;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:8.55pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-right:2.15pt;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:8.55pt'>
 <p align=right style='margin-right:2.15pt;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:8.55pt'>
 <p align=right style='margin-right:2.15pt;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;
 height:8.55pt'>
 <p align=right style='margin-right:2.15pt;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:8.55pt'>
 <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>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Exercised shares</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <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=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">91</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">  65</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">  65</p>
 </td>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Cancelled option shares (Note 21)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <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=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <p align=right style='margin-right:2.15pt;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;
 height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <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>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Cost of share-based payments</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <p align=right style='margin-right:2.15pt;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;
 height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <p align=right style='margin-right:2.15pt;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;
 height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">   7</p>
 </td>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.0pt'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Minority interest</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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;height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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;height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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;height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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;height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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;height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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;height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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;height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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;height:9.0pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">48</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;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">  48</p>
 </td>
 </tr>
 <tr style='height:8.95pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:8.95pt'>
 <p style='margin-left:13.9pt;text-indent:-13.9pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Balances at June 30, 2004 (As restated &#150; Note
 2)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,500</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 848</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 261</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,536</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">49,795</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(25,021) </p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 562</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">32,481</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 844</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">33,325</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <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:6.75pt'>
 <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;
 height:6.75pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <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=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <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=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <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=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <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=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <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=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <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='height:6.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Balances at January 1, 2005</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,497</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">851</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">181</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,459</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">50,528</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(10,220)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">362</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">47,658</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">857</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">48,515</p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Changes in equity:</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right 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:8.55pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right 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:8.55pt'>
 <p 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:9.45pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Net income for the period</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p align=right style='margin-right:2.15pt;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:9.45pt'>
 <p align=right style='margin-right:2.15pt;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:9.45pt'>
 <p align=right style='margin-right:2.15pt;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:9.45pt'>
 <p align=right style='margin-right:2.15pt;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:9.45pt'>
 <p align=right style='margin-right:2.15pt;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:9.45pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16,785</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16,785</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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">16,817</p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Cash dividends</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-right:2.15pt;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:8.55pt'>
 <p align=right style='margin-right:2.15pt;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:8.55pt'>
 <p align=right style='margin-right:2.15pt;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:8.55pt'>
 <p align=right style='margin-right:2.15pt;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:8.55pt'>
 <p align=right style='margin-right:2.15pt;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:8.55pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(6,682)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(6,682)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(6,682)</p>
 </td>
 </tr>
 <tr style='height:9.45pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Currency translation differences (Note
 24)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p align=right style='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;
 height:9.45pt'>
 <p align=right style='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;
 height:9.45pt'>
 <p align=right style='margin-right:2.15pt;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:9.45pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2) </p>
 </td>
 </tr>
 <tr style='height:9.45pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Net gains on available-for-sale
 financial assets (Note 24)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p align=right style='margin-right:2.15pt;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:9.45pt'>
 <p align=right style='margin-right:2.15pt;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:9.45pt'>
 <p align=right style='margin-right:2.15pt;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:9.45pt'>
 <p align=right style='margin-right:2.15pt;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:9.45pt'>
 <p align=right style='margin-right:2.15pt;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:9.45pt'>
 <p align=right style='margin-right:2.15pt;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:9.45pt'>
 <p align=right style='margin-right:2.15pt;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;
 height:9.45pt'>
 <p align=right style='margin-right:2.15pt;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;
 height:9.45pt'>
 <p align=right style='margin-right:2.15pt;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:9.45pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">   6</p>
 </td>
 </tr>
 <tr style='height:9.45pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Net loss on cash flow hedges (Note 24)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p align=right style='margin-right:2.15pt;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:9.45pt'>
 <p align=right style='margin-right:2.15pt;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:9.45pt'>
 <p align=right style='margin-right:2.15pt;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:9.45pt'>
 <p align=right style='margin-right:2.15pt;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:9.45pt'>
 <p align=right style='margin-right:2.15pt;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:9.45pt'>
 <p align=right style='margin-right:2.15pt;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:9.45pt'>
 <p align=right style='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;
 height:9.45pt'>
 <p align=right style='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;
 height:9.45pt'>
 <p align=right style='margin-right:2.15pt;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:9.45pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(500)</p>
 </td>
 </tr>
 <tr style='height:8.1pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Issuance of capital stock - net (Note 16)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(10)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p align=right style='margin-right:2.15pt;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;
 height:8.1pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(195)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,226</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p align=right style='margin-right:2.15pt;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:8.1pt'>
 <p align=right style='margin-right:2.15pt;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:8.1pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,026</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p align=right style='margin-right:2.15pt;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:8.1pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,026</p>
 </td>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Exercised shares</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(57)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">187</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 131</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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:9.0pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 131</p>
 </td>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.0pt'>
 <p style='margin-left:18.4pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Minority interest</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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;height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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;height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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;height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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;height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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;height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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;height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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;height:9.0pt'>
 <p align=right style='margin-right:2.15pt;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;height:9.0pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(7)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(7)</p>
 </td>
 </tr>
 <tr style='height:8.05pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:8.05pt'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Balances at June 30, 2005 (Unaudited)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:8.05pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,487</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:8.05pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 857</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:8.05pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 124</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:8.05pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,264</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:8.05pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">51,941</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:8.05pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(117)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:8.05pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(134)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:8.05pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">58,422</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:8.05pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 882</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in;height:8.05pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">59,304</p>
 </td>
 </tr>
</table></center></div>

<p style='line-height:30%;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>See accompanying Notes to Unaudited Consolidated Financial Statements.</i></p>

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

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

<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 style='page-break-after:auto;punctuation-wrap:hanging;
text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>CONSOLIDATED STATEMENTS OF CASH FLOWS</b></p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>(in million pesos)</b></p>

<p align=left style='text-align:left;page-break-after:auto;
punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' 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:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <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'>
 <p align=right style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Six
 Months Ended June 30,</b></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:3.0pt' 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=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2005</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-top:3.0pt;margin-right:0in;
 margin-bottom:0in;margin-left:13.45pt;margin-bottom:.0001pt;text-align:center' 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;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2004</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid;height:12.1pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:12.1pt'>
 <p style='margin-top:3.0pt;margin-right:0in;margin-bottom:
 0in;margin-left:9.4pt;margin-bottom:.0001pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;height:12.1pt'>
 <p align=center style='margin-top:0in;margin-right:2.9pt;
 margin-bottom:0in;margin-left:.7in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Unaudited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:12.1pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:12.1pt'>
 <p style='margin-top:3.0pt;margin-right:0in;margin-bottom:
 0in;margin-left:9.4pt;margin-bottom:.0001pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0"><b>CASH FLOWS
 FROM OPERATING ACTIVITIES</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:12.1pt'>
 <p align=right style='margin-top:3.0pt;margin-right:2.9pt;
 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=top style=' padding:0in 0in 0in 0in;
 height:12.1pt'>
 <p align=right style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:12.1pt'>
 <p align=right style='margin-top:3.0pt;margin-right:2.9pt;
 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:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Income before
 income tax</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>22,511</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p 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;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">16,259</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-left:13.9pt;text-indent:-13.9pt' style="margin-top:0;margin-bottom:0">Adjustments
 for:</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <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;
 height:7.75pt'>
 <p 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;
 height:7.75pt'>
 <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:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Depreciation and amortization</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>10,861</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p 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;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">10,927</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Interest on loans and related
 items - net of capitalized interest (Note 5)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>5,453</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p 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;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">6,201</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Provision for doubtful accounts
 (Note 5)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,526</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p 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;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,875</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Accretion on financial
 liabilities - net (Note 5)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,437</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p 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;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,496</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Write-down of inventories at net
 realizable value (Note 5)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>325</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p 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;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">128</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Dividends on preferred stock
 subject to mandatory redemption (Note 5)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>132</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p 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;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">117</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Provision for onerous contracts
 (Note 5)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <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=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p 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;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">173</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Equity in net losses (income) of
 associates (Note 5)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(3)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p 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;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">36</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Interest income (Note 5)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(741)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <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;
 height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(468)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Foreign exchange (gains) losses
 - net</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(1,376)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p 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;
 height:7.75pt'>
 <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;height:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Loss (gain) on derivative
 transactions - net (Note 5)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(1,719)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p 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;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">604</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Asset impairment</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <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=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p 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;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">85</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.35pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.35pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>201</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.35pt'>
 <p 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;
 height:4.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">307</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:7.75pt'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Operating
 income before working capital changes</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>38,724</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p 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:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">39,137</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Decrease (increase) in:</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <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;
 height:7.75pt'>
 <p 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;
 height:7.75pt'>
 <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:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Trade and other receivables</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>466</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <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;
 height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(510)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Inventories and supplies</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(463)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p 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;
 height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(624)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Prepayments</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(554)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p 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;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">17</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Other current assets</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(260)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <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;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">59</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Increase (decrease) in:</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <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;
 height:7.75pt'>
 <p 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;
 height:7.75pt'>
 <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:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Accounts payable</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(1,872)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <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;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,677</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Accrued expenses and other
 current liabilities</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,907</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p 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;
 height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(446)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Unearned revenues</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(252)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p 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;
 height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(279)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Pension and other benefits</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>794</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p 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;
 height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(819)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:7.75pt'>
 <p style="margin-top:0;margin-bottom:0">Net cash generated from operations</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>38,490</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p 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:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">40,212</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:7.75pt'>
 <p style="margin-top:0;margin-bottom:0">Income taxes paid</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(3,871)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <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;padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(2,132)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:7.75pt'>
 <p style="margin-top:0;margin-bottom:0">Net cash provided by operating activities</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>34,619</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p 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;height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">38,080</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-top:3.0pt;margin-right:0in;margin-bottom:
 0in;margin-left:9.4pt;margin-bottom:.0001pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0"><b>CASH FLOWS
 FROM INVESTING ACTIVITIES</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='margin-top:3.0pt;margin-right:2.9pt;
 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;padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='margin-top:3.0pt;margin-right:2.9pt;
 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:none;padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='margin-top:3.0pt;margin-right:2.9pt;
 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:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-left:.4pt;text-indent:-.4pt' style="margin-top:0;margin-bottom:0">Additions to
 property, plant and equipment</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(6,809)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <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;
 height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(11,273)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Proceeds from
 disposal of property, plant and equipment</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>300</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p 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;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">22</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Interest paid
 - capitalized to property, plant and equipment (Note 5)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(203)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <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;
 height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(302)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Payments for
 purchase of investments</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(238)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <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;
 height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(147)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style="margin-top:0;margin-bottom:0">Additions to investment properties</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <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=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <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;
 height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.45pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p style="margin-top:0;margin-bottom:0">Payments for purchase of investments-available-for-sale</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(4)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <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;
 height:9.45pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(3)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style="margin-top:0;margin-bottom:0">Decrease (increase) in short-term investments</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>3,847</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <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;
 height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,937)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style="margin-top:0;margin-bottom:0">Investments in notes receivable</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(60)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p 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;
 height:7.75pt'>
 <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;height:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style="margin-top:0;margin-bottom:0">Interest received</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>747</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p 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;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">468</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p style="margin-top:0;margin-bottom:0">Decrease in other noncurrent assets</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>200</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.75pt'>
 <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;
 height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(261)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <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:7.75pt'>
 <p 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;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(2,220)</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:7.75pt'>
 <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:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(13,435)</p>
 </td>
 </tr>
</table></center></div>

<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>CONSOLIDATED STATEMENTS OF CASH FLOWS (<i>continued</i>)</b></p>

<p style='page-break-after:auto;punctuation-wrap:hanging;
text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">(in million pesos)</p>

<p style='punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' 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:100.66%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:3.5pt'>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p style='margin-top:3.0pt;margin-right:0in;margin-bottom:
 0in;margin-left:9.4pt;margin-bottom:.0001pt;text-indent:-9.4pt' 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;height:3.5pt'>
 <p align=right style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Six
 Months Ended June 30,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.5pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:3.5pt'>
 <p style='margin-top:3.0pt;margin-right:0in;margin-bottom:
 0in;margin-left:9.4pt;margin-bottom:.0001pt;text-indent:-9.4pt' 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:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2005</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:3.5pt'>
 <p align=right style='margin-top:3.0pt;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:solid windowtext 1.0pt;border-right:none;
 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">2004</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.5pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p style='margin-top:3.0pt;margin-right:0in;margin-bottom:
 0in;margin-left:9.4pt;margin-bottom:.0001pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=center style='margin-top:0in;margin-right:2.9pt;
 margin-bottom:0in;margin-left:.7in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Unaudited)</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-top:3.0pt;margin-right:0in;margin-bottom:
 0in;margin-left:9.4pt;margin-bottom:.0001pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0"><b>CASH FLOWS
 FROM FINANCING ACTIVITIES</b></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"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p align=right style='margin-top:3.0pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p align=right style='margin-top:3.0pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</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-top:0;margin-bottom:0">Proceeds from long-term debt</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"><b>5,471</b></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=' 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">4,824</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-bottom:0in;margin-bottom:.0001pt;line-height:
 normal;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">Payments of long-term
 debt</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(22,187)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <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;
 height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(17,436)</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-top:0;margin-bottom:0">Proceeds from notes payable</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"><b>251</b></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=' 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">45</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-top:0;margin-bottom:0">Payments of notes payable</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(254)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <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;
 height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(2,045)</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-top:0;margin-bottom:0">Payments of obligations under capital lease</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(43)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <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;
 height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(14)</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-top:0;margin-bottom:0">Interest paid - net of capitalized portion</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(5,671)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <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;
 height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(6,339)</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-top:0;margin-bottom:0">Cash dividends paid</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(2,963)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <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;
 height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(601)</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-top:0;margin-bottom:0">Proceeds from issuance of capital stock</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"><b>133</b></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=' 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">68</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:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Payments of
 debt issuance costs</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(133)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <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;
 height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(21)</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:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Increase
 (decrease) in:</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"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <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;
 height:3.5pt'>
 <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:3.5pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p style='margin-left:9.0pt;text-indent:.4pt' style="margin-top:0;margin-bottom:0">Customers&#146;
 deposits</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(30)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <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;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">22</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:9.0pt;text-indent:.4pt' style="margin-top:0;margin-bottom:0">Other
 noncurrent liabilities</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"><b>1,430</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <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;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">346</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.25pt'>
 <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:11.25pt'>
 <p 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;
 padding:0in 0in 0in 0in;height:11.25pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(23,996)</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:11.25pt'>
 <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:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:11.25pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(21,151)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.25pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:11.25pt'>
 <p style='margin-top:3.0pt;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>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;padding:0in 0in 0in 0in;height:11.25pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(95)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;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;padding:0in 0in 0in 0in;height:11.25pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(67)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.25pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:11.25pt'>
 <p style='margin-top:3.0pt;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>NET
 INCREASE IN CASH AND CASH EQUIVALENTS</b></p>
 </td>
 <td   valign=bottom style=' border:none;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"><b>8,308</b></p>
 </td>
 <td   valign=bottom style=' border:none;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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;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">3,427</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.25pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:11.25pt'>
 <p style='margin-top:3.0pt;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>CASH AND
 CASH EQUIVALENTS AT BEGINNING OF PERIOD</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;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"><b>27,321</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;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">19,372</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.25pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:11.25pt'>
 <p style='margin-top:3.0pt;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>CASH AND
 CASH EQUIVALENTS AT END OF PERIOD</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;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"><b>35,629</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;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">22,799</p>
 </td>
 </tr>
</table></center></div>

<p style='text-align:justify;line-height:30%' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-align:justify' style="margin-top:0;margin-bottom:0"><i>See
accompanying Notes to Unaudited Consolidated Financial Statements.</i></p>

<p style='margin-left:9.0pt;text-align:justify;text-indent:
- -9.0pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

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

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

<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 style='page-break-after:auto;punctuation-wrap:hanging;
text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS</b></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' style="margin-top:0;margin-bottom:0"><b>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</b><b>Corporate
Information</b></p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">The
Philippine Long Distance Telephone Company, or PLDT, or Parent Company, 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 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 Corporation, 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
Corporations&#146; investment in PLDT, we acquired 100% of Smart Communications,
Inc., or Smart.</p>

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

<p style='margin-left:.25in' 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.  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 ADRs effective February 10, 2003.
The ADSs are listed and traded on the New York Stock Exchange and the
Archipelago Exchange in the United States.</p>

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

<p style='margin-left:.25in' 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 </p>

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

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

<p style='margin-left:.25in' 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='margin-left:.25in;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"><a name="OLE_LINK12"></a><a name="OLE_LINK14">&nbsp;</a></p>

</div>

<p style='margin-left:.25in;text-align:justify;text-indent:
- -.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</b><b>Summary of
Significant Accounting Policies and Practices</b></p>

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

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Basis of Preparation</b></p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Our
unaudited consolidated financial statements have been prepared in conformity
with Philippine Generally Accepted Accounting Principles, or Philippine GAAP,
under the historical cost convention as modified by the revaluation of
derivative financial instruments, available-for-sale financial assets and
investment properties that are measured at fair value.  The carrying values of
recognized assets and liabilities that are hedged are adjusted to record
changes in the fair values attributable to the risks that are being hedged.  </p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Our
unaudited consolidated financial statements include, in our opinion, all
adjustments consisting only of normal recurring adjustments, necessary to
present fairly the results of operations for the interim periods.  The results
of operations for the six months ended June 30, 2005
are not necessarily indicative of the results of operations that may be
expected for the full year.</p>

<p style='margin-left:.25in;punctuation-wrap:simple;text-autospace:
none;vertical-align:baseline' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Our
unaudited consolidated financial statements are presented in Philippine pesos
and all values are rounded to the nearest million except when otherwise
indicated.</p>

<p style='margin-left:.25in;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"><b>Changes in Accounting Policies</b></p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">In
recent years, the Philippine Accounting Standards Committee, or ASC, has been
adopting the International Accounting Standards, or IAS, issued by the
International Accounting Standards Committee, or IASC, with no local equivalent
standards and has been replacing existing local standards.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">The
International Accounting Standards Board, or IASB, has assumed from the IASC
the responsibility for setting IAS.  The standards issued by the IASB are
designated as International Financial Reporting Standards, or IFRS.  Upon its
adoption, the IASB also adopted the IAS issued by the IASC.  The IASB carried
on improvements in certain IAS in preparation for the full adoption of IFRS
effective January 1, 2005.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">The
ASC has re-named the new standards &#147;Philippine Accounting Standards&#148;, or PAS,
and &#147;Philippine Financial Reporting Standards&#148;, or PFRS, to correspond with the
adopted IAS and IFRS of the IASB.  ASC standards were previously designated as
&#147;Statements of Financial Accounting Standards&#148;, or SFAS.</p>

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

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The accounting policies adopted are consistent with
those of the previous financial period except that we have adopted in year-end
2004 the following new accounting standards intended to be mandatory beginning January 1, 2005.  Our
June 30, 2004 unaudited consolidated financial statements herein
have been restated to give effect to the provisions of the new standards
adopted.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b><i>PAS
19, &#147;Employee Benefits&#148;. </i></b> PAS 19
requires the use of the projected unit credit method in measuring retirement
benefit expense and a change in the manner of computing benefit expense
relating to past service cost and actuarial gains and losses.  Past service
cost is recognized as an expense on a straight-line basis over the average
period until the benefits become vested.  On the initial adoption of this
standard, the effect of the change in accounting policy includes all actuarial
gains and losses that arose in earlier periods even if they fall inside the 10%
corridor.  In subsequent periods, portion of actuarial gains or losses is
recognized as income or expense if the cumulative unrecognized actuarial gains
and losses at the end of the previous reporting period exceed the greater of:
(i) 10% of the present value of the defined benefit obligation at that date
(before deducting plan assets); and (ii) 10% of the fair value of any planned
assets at that date by dividing the excess determined by the expected average remaining working
lives of the employees participating in that plan is recognized immediately as
income or expense.  Our adoption of this standard reduced our consolidated net
income by Php20 million (Php15 million after tax effect) for the six months
ended June 30, 2004.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b><i>PAS 21, &#147;The Effects of
Changes in Foreign Exchange Rates&#148;.</i></b>  PAS 21 requires the recognition of
foreign exchange gains and losses in the period
they are incurred.  Upon the adoption of PAS 21, we adjusted previously
recorded undepreciated capitalized foreign exchange losses, net of exchange
losses that qualify as borrowing cost and income tax effect, against beginning
retained earnings, to the extent that such capitalized amounts do not meet the
conditions for capitalization under the new accounting standard, and restated
prior periods&#146; unaudited consolidated financial statements.  Further, PAS 21
requires the determination of the functional currency of an entity.  Exchange
differences from any retranslation are taken directly as a separate component
of equity.  On disposal of an entity with a functional currency other than the
Philippine peso, the deferred cumulative amount recognized in equity relating
to that particular foreign operation shall be recognized in the consolidated statement
of income.  Our adoption of this standard increased our consolidated net income
by Php1,779 million (Php1,226 million after tax effect) for the six months
ended June 30, 2004.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b><i>PAS
27, &#147;Consolidated and Separate Financial Statements&#148;. </i></b> PAS 27 supersedes
SFAS 27/IAS 27, &#147;Consolidated Financial Statements and Accounting for Investments in Subsidiaries&#148;.
Under PAS 27, the exclusion of a subsidiary from consolidation when there are
severe long-term restrictions that significantly impair a subsidiary&#146;s ability
to transfer funds to the parent company under the superseded standard was
removed.  Consequently, Pilipino Telephone Corporation, or Piltel, was required
to be included in our unaudited consolidated financial statements
retrospectively.  Our adoption of this standard increased our consolidated net
income by Php840 million for the six months ended June 30, 2004.  </p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b><i>PAS
32, &#147;Financial Instruments: Disclosure and Presentation&#148;.</i></b>  PAS 32 covers the disclosure and presentation of all
financial instruments.  This standard requires more comprehensive disclosures
about a company&#146;s financial instruments, whether recognized or unrecognized in
the financial statements.  New disclosure requirements include terms and
conditions of financial instruments used, types of risks associated with both
recognized and unrecognized financial instruments (market risk, price risk,
credit risk, liquidity risk, and cash flow risk), fair value information of
both recognized and unrecognized financial assets and financial liabilities,
and our financial risk management policies and objectives.  This standard also
requires financial instruments to be classified as liabilities or equity in
accordance with their substance and not their legal form.  Consequently, we
have designated PLDT&#146;s Convertible Preferred Stock Series V, VI and VII as
compound instruments consisting of liability and equity components.  The total fair value of the Convertible Preferred
Stock Series V, VI and VII was determined at issue date, of which the aggregate
fair value of the liability component of the Series V, VI and VII Convertible
Preferred Stock as at issuance date is included as a financial liability under <i>Interest-bearing
Financial Liabilities </i>account in the unaudited consolidated balance
sheets.  The residual amount was assigned as the equity component.  Our adoption of this standard reduced our consolidated
net income by Php897 million (Php647 million after tax effect) for the six months
ended June 30, 2004.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b><i>PAS
39, &#147;Financial Instruments: Recognition and Measurement&#148;.  </i></b>PAS 39 establishes the accounting and reporting
standards for recognizing and measuring our financial assets and financial
liabilities.  This standard requires a financial asset or financial liability
to be recognized initially at fair value.  Subsequent to initial recognition,
we are to continue to measure financial assets at their fair values, except for
loans and receivables and held-to-maturity investments, which are measured at
cost or amortized cost using the effective interest rate method.  Financial
liabilities are subsequently measured at cost or amortized cost, except for
liabilities classified as &#147;at fair value through profit and loss&#148; and
derivatives, which are measured at fair value.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">PAS
39 also covers the accounting for derivative instruments.  This standard has
expanded the definition of a derivative instrument to include derivatives
(derivative-like provisions) embedded in non-derivative contracts.  Under this
standard, every derivative instrument is recorded in the balance sheet as
either an asset or liability measured at its fair value.  Derivatives that are
not designated and do not qualify as hedges are adjusted to fair value through
income.  If the derivative is designated and qualifies as a hedge, depending on
the nature of the hedge, changes in the fair value of derivatives are either
offset against the change in fair value of the hedged assets, liabilities, or
firm commitments through earnings, or recognized in equity until the hedged
item is recognized in earnings.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Our
adoption of this standard decreased our consolidated net income by Php1,277
million (Php830 million after tax effect) for the six months ended June 30, 2004. </p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b><i>PAS
40, &#147;Investment Property&#148;.</i></b>  PAS
40 prescribes the accounting treatment for investment properties which are
defined as land and/or building held to generate income or for capital
appreciation or both.  An investment property is initially recognized at cost.
Subsequent to initial recognition, an investment property is either carried at
(i) cost, less accumulated depreciation or any accumulated impairment losses,
or (ii) fair value, wherein fair value movements are recognized as income or
expense.  Transfers to or from investment property classification are made only
when there is evidence of a change in use.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Our
adoption of this standard, where we opted to carry our investment properties at
fair value subsequent to initial recognition, decreased our consolidated net
income by Php10 million (Php7 million after tax effect) for the six months
ended June 30, 2004.</p>

<p style='margin-left:.25in' 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"><b><i>PFRS 2, &#147;Share-Based Payment&#148;.</i></b>  PFRS 2 requires an entity to recognize goods or
services received or acquired in a share-based payment transaction when it
obtains the goods or as the services are received.  The entity shall recognize
a corresponding increase in equity if the goods or services were received in an
equity-settled share-based payment transaction, or a liability if the goods or
services were acquired in a cash-settled share-based payment transaction.  In
line with our adoption of PFRS 2, we recognized in our consolidated statements
of income the costs of employees&#146; and directors&#146; share options and other
share-based incentives by using an option-pricing model, further details of
which are given in <i>Note 21 &#150; Employee Benefits</i>.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Our
adoption of this standard decreased our consolidated net income by Php127
million (Php93 million after tax effect) for the six months ended June 30, 2004.</p>

<p style='margin-left:.25in' 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"><a
name="OLE_LINK22"><b><i>PFRS 3, &#147;Business
Combinations&#148;, PAS 36, &#147;Impairment of Assets&#148; and PAS 38, &#147;Intangible Assets&#148;.</i></b></a>  PFRS 3 requires all business combinations within its
scope to be accounted for by applying the purchase method.  In addition, this
standard requires the acquirer to initially measure separately the identifiable
assets, liabilities and contingent liabilities at their fair values, at
acquisition date, irrespective of the extent of any minority interest.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">PFRS 3 also requires
goodwill in a business combination to be recognized by an acquirer as an asset
from the acquisition date, initially measured as the excess of the cost of the
business combination over the acquirer&#146;s interest in the net fair value of the
acquiree&#146;s identifiable assets and liabilities.  Further, the amortization of
goodwill acquired in a business combination is prohibited; instead, goodwill is
to be tested annually, or more frequently, if events or changes in
circumstances indicate that the asset might be impaired.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Moreover,
the useful lives of intangible assets are assessed at the individual asset
level as having either a finite or indefinite life.  Where an intangible asset
has a finite life, it will be amortized over its useful life.  Amortization
periods and methods for intangible assets with finite useful lives are reviewed
annually or earlier where an indicator of impairment exists.  Intangibles
assessed as having indefinite useful lives are not amortized, as there is no
foreseeable limit to the period over which the asset is expected to generate
net cash inflows for the PLDT Group.  However, intangibles with indefinite
useful lives are reviewed annually to ensure that their carrying values do not
exceed the recoverable amounts regardless of any impairment indicators present.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Our
adoption of this standard decreased our consolidated net income by Php26
million for the six months ended June 30, 2004.</p>

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

<p style='margin-left:.25in;page-break-after:avoid;punctuation-wrap:
simple;text-autospace:none;vertical-align:baseline' style="margin-top:0;margin-bottom:0"><b><i>PFRS 5, &#147;Noncurrent Assets Held-for-Sale and
Discontinued Operations&#148;.  </i></b>Under
the superseded SFAS 35/IAS 35, &#147;Discontinuing Operations&#148;, we would have
previously recognized a discontinued operation at the earlier of when (a) we
enter into a binding agreement; and (b) the Board of Directors have approved
and announced a formal disposal plan.  PFRS 5 now requires an operation to be
classified as discontinued when the criteria to be classified as held-for-sale
have been met or we have disposed of the operation.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">In
addition to these standards referred to above, we have adopted the following
standards during the period and comparative figures have been amended as
required:</p>

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

<p style='margin-left:.75in;text-indent:-.25in;punctuation-wrap:
simple;text-autospace:none;vertical-align:baseline' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PAS   1  &#150;  &#147;Presentation of
Financial Statements&#148;;</p>

<p style='margin-left:.75in;text-indent:-.25in;punctuation-wrap:
simple;text-autospace:none;vertical-align:baseline' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PAS   2  &#150;  &#147;Inventories&#148;;</p>

<p style='margin-left:.75in;text-indent:-.25in;punctuation-wrap:
simple;text-autospace:none;vertical-align:baseline' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PAS   8  &#150;  &#147;Accounting Policies,
Changes in Accounting Estimates and Errors&#148;;</p>

<p style='margin-left:.75in;text-indent:-.25in;punctuation-wrap:
simple;text-autospace:none;vertical-align:baseline' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PAS 10  &#150;  &#147;Events After the
Balance Sheet Date&#148;;</p>

<p style='margin-left:.75in;text-indent:-.25in;punctuation-wrap:
simple;text-autospace:none;vertical-align:baseline' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PAS 24  &#150;  &#147;Related Party
Disclosures&#148;;</p>

<p style='margin-left:.75in;text-indent:-.25in;punctuation-wrap:
simple;text-autospace:none;vertical-align:baseline' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PAS 28  &#150;  &#147;Investments in
Associates&#148;;</p>

<p style='margin-left:.75in;text-indent:-.25in;punctuation-wrap:
simple;text-autospace:none;vertical-align:baseline' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PAS 31  &#150;  &#147;Interests in Joint
Ventures&#148;; and</p>

<p style='margin-left:.75in;text-indent:-.25in;punctuation-wrap:
simple;text-autospace:none;vertical-align:baseline' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PAS 33  &#150;  &#147;Earnings Per Share&#148;.</p>

<p style='margin-left:.25in' 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">Following additional guidelines from PAS 16,
&#147;Property, Plant and Equipment&#148;, we have recognized the initial settlement of the net present value of
legal and constructive 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 in the period in
which it is incurred.  The asset retirement obligations were recognized in the
period in which they are incurred if a reasonable estimate of fair values can
be made.  The related asset retirement costs are capitalized as part of the
carrying amount of the corresponding property, plant and equipment which are
being depreciated on a straight-line basis over the useful lives of the related
assets or the contract periods, whichever is lower.</p>

<p style='margin-left:.25in' 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">We are legally required under various lease agreements
to dismantle the installations and restore the leased sites to their original
state at the end of the lease contract term.  Our adoption of certain
provisions of this standard reduced our consolidated net income by Php50
million (Php34 million after tax effect) for the six months ended June 30, 2004.</p>

<p style='margin-left:.25in' 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">Adoption of the above standards involved changes in
accounting policies and we have accordingly restated our comparative unaudited
consolidated financial statements retroactively in accordance with the
transitional provisions in these standards.  Reconciliation of the effects of
these new standards, as they apply to us, on our net income for the six months
ended June 30, 2004 is set out below.</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:96.88%;margin-left:18.3pt;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='text-align:justify' 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'>
 <p align=center style='margin-right:.2pt;text-align:center' style="margin-top:0;margin-bottom:0">(in millions, <br>
 except per share amounts)</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:auto' style="margin-top:0;margin-bottom:0">Net income, as previously reported</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.6in;text-align:right' style="margin-top:0;margin-bottom:0">Php12,008</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.1pt' style="margin-top:0;margin-bottom:0">PAS
 16 &#150; Property, Plant and Equipment</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:40.5pt;text-align:right' style="margin-top:0;margin-bottom:0">(34)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.1pt' style="margin-top:0;margin-bottom:0">PAS
 17 &#150; Leases</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.6in;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:18.1pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">PAS 19 &#150; Employee Benefits</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:40.5pt;text-align:right' style="margin-top:0;margin-bottom:0">(15)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:40.6pt;text-indent:-31.5pt' style="margin-top:0;margin-bottom:0">PAS 21 &#150; The Effects of Changes in Foreign Exchange
 Rates</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.6in;text-align:right' style="margin-top:0;margin-bottom:0">1,226</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:40.6pt;text-indent:-31.5pt' style="margin-top:0;margin-bottom:0">PAS 27 &#150; Consolidated and Separate Financial
 Statements</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.6in;text-align:right' style="margin-top:0;margin-bottom:0">840</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:40.6pt;text-indent:-31.5pt' style="margin-top:0;margin-bottom:0">PAS 32 &#150; Financial Instruments: Disclosure and
 Presentation</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:40.5pt;text-align:right' style="margin-top:0;margin-bottom:0">(647)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:18.1pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">PAS 39 &#150; Financial Instruments: Recognition and
 Measurement</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:40.5pt;text-align:right' style="margin-top:0;margin-bottom:0">(830)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:18.1pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">PAS 40 &#150; Investment Property</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:40.5pt;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:18.1pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">PFRS 2 &#150; Share-Based Payment</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:40.5pt;text-align:right' style="margin-top:0;margin-bottom:0">(93)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:45.1pt;text-indent:-.5in' style="margin-top:0;margin-bottom:0">PFRS 3 &#150; Business Combinations, PAS 36 &#150; Impairment
 of Assets and <br>
  PAS 38 &#150; Intangible Assets</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:40.5pt;text-align:right' style="margin-top:0;margin-bottom:0">(26)</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;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:0in;text-indent:0in;page-break-after:auto' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">Net income, as restated</h1>
 </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:.6in;text-align:right' style="margin-top:0;margin-bottom:0">Php12,423</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.5pt;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   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0"><b>Earnings
 per common share, as previously reported</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.6in;text-align:right' style="margin-top:0;margin-bottom:0">Php65.62</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.1pt' style="margin-top:0;margin-bottom:0">Earnings
 per share impact of restated items:</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:45.0pt;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:9.1pt' style="margin-top:0;margin-bottom:0">PAS
 16 &#150; Property, Plant and Equipment</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:40.5pt;text-align:right' style="margin-top:0;margin-bottom:0">(0.20)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.1pt' style="margin-top:0;margin-bottom:0">PAS
 17 &#150; Leases</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.6in;text-align:right' style="margin-top:0;margin-bottom:0">0.01</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.1pt' style="margin-top:0;margin-bottom:0">PAS
 19 &#150; Employee Benefits</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:40.5pt;text-align:right' style="margin-top:0;margin-bottom:0">(0.09)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.1pt' style="margin-top:0;margin-bottom:0">PAS
 21 &#150; The Effects of Changes in Foreign Exchange Rates</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.6in;text-align:right' style="margin-top:0;margin-bottom:0">7.17</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.1pt' style="margin-top:0;margin-bottom:0">PAS
 27 &#150; Consolidated and Separate Financial Statements</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.6in;text-align:right' style="margin-top:0;margin-bottom:0">4.95</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.1pt' style="margin-top:0;margin-bottom:0">PAS
 32 &#150; Financial Instruments: Disclosure and Presentation</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:40.5pt;text-align:right' style="margin-top:0;margin-bottom:0">(3.04)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.1pt' style="margin-top:0;margin-bottom:0">PAS
 39 &#150; Financial Instruments: Recognition and Measurement</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:40.5pt;text-align:right' style="margin-top:0;margin-bottom:0">(4.90)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.1pt' style="margin-top:0;margin-bottom:0">PAS
 40 &#150; Investment Property</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:40.5pt;text-align:right' style="margin-top:0;margin-bottom:0">(0.04)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.1pt' style="margin-top:0;margin-bottom:0">PFRS
 2 &#150; Share-Based Payment</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:40.5pt;text-align:right' style="margin-top:0;margin-bottom:0">(0.55)</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-left:45.1pt;text-indent:-.5in' style="margin-top:0;margin-bottom:0">PFRS 3 &#150; Business Combinations, PAS 36 &#150; Impairment
 of Assets and <br>
  PAS 38 &#150; Intangible Assets</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:40.5pt;text-align:right' style="margin-top:0;margin-bottom:0">(0.15)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0"><b>Earnings
 per common share, as restated</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.6in;text-align:right' style="margin-top:0;margin-bottom:0">Php68.78</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">We
fully adopted PAS 16 in 2005, which requires us to determine the depreciation
charge separately for each significant part of an item of property, plant and
equipment.  Consequently, we changed the estimated useful lives of certain
components of our property, plant and equipment and we recognized the effect of
the change in accounting estimate prospectively, in accordance with PAS 8,
&#147;Accounting Policies, Changes in Accounting Estimates and Errors&#148;.  Our full
adoption of this standard reduced our consolidated net income by Php698 million (Php475 million
after tax effect) for the six months ended June 30, 2005.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b>Basis
of Consolidation</b></p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Our
unaudited 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, which was incorporated in the British Virgin Islands.</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:95.92%;margin-left:18.4pt;border-collapse:collapse'>

 <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;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:3.0pt' style="margin-top:0;margin-bottom:0"><b>Name
 of Subsidiary</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 style='margin-top:3.0pt;margin-right:0in;margin-bottom:
 0in;margin-left:1.45pt;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0"><b>Principal Activity</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-top:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Percentage of Ownership</b></p>
 </td>
 </tr>

 <tr style='height:.1in'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:.1in'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:.1in'>
 <p style='margin-left:1.45pt;text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:.1in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='height:16.2pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:16.2pt'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:0in' style="margin-top:0;margin-bottom:0"><b>Wireless </b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:16.2pt'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:.15in;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:16.2pt'>
 <p align=right style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:.25in;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Smart
 and subsidiaries </p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:.15in;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Cellular mobile services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:40.5pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:.25in;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Piltel
 and subsidiaries</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:.15in;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Cellular mobile and telecommunications services </p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:40.5pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">92.1</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:.25in;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">ACeS Philippines Cellular Satellite <br>
 Corporation, or ACeS Philippines</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:.15in;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Satellite phone services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:40.5pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:.25in;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Telesat,
 Inc., or Telesat</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:.15in;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Satellite communications services</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:40.5pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">94.4</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:.25in;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Mabuhay Satellite Corporation, or <br>
 Mabuhay Satellite</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:.15in;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Satellite communications services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:40.5pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">67.0</p>
 </td>
 </tr>
 <tr style='height:.1in'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.1in'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.1in'>
 <p style='margin-left:.15in;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.1in'>
 <p align=right style='margin-right:40.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='height:18.45pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:18.45pt'>
 <p style="margin-top:0;margin-bottom:0"><b>Fixed Line </b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:18.45pt'>
 <p style='margin-left:.15in;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:18.45pt'>
 <p align=right style='margin-right:40.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:.25in;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">PLDT
 Clark Telecom, Inc., or Clark Telecom</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:.15in;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Telecommunications
 services</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:40.5pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:.25in;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Subic
 Telecommunications Company, Inc., <br>
 or Subic Telecom</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:.15in;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Telecommunications
 services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:40.5pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:.25in;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">PLDT
 Global Corporation, or <br>
 PLDT Global, and subsidiaries</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:.15in;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Telecommunications
 services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:40.5pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:.25in;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Smart-NTT
 Multimedia, Inc., or SNMI</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:.15in;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Data
 and network services</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:40.5pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:.25in;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">PLDT-Maratel,
 Inc., or Maratel</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:.15in;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Telecommunications
 services</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:40.5pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">97.5</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:.25in;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Bonifacio
 Communications Corporation, or BCC</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:.15in;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Telecommunications,
 infrastructure and related value-added services</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:40.5pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">75.0</p>
 </td>
 </tr>
 <tr style='height:.1in'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.1in'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.1in'>
 <p style='margin-left:.15in;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.1in'>
 <p align=right style='margin-top:1.0pt;margin-right:40.5pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='height:16.2pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:16.2pt'>
 <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=bottom style=' padding:0in 0in 0in 0in;
 height:16.2pt'>
 <p style='margin-left:.15in;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:16.2pt'>
 <p align=right style='margin-top:1.0pt;margin-right:40.5pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</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:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:.25in;text-indent:-9.0pt' 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;padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:.15in;text-indent:-9.35pt' 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=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:40.5pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Subsidiaries
are consolidated from the date when control is transferred to the PLDT Group
and cease to be consolidated from the date when control is transferred out of
the PLDT Group.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">We prepare
our unaudited consolidated financial statements using uniform accounting
policies for like transactions and other events with similar circumstances.
Intercompany balances and transactions, including intercompany profits and
unrealized profits and losses, are eliminated.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Minority
interests represent the equity interests in Telesat, Mabuhay Satellite,
Maratel, BCC, Digital Paradise, Inc., or Digital Paradise, Digipar Thailand
Ltd., netGames, Inc., or netGames, and Infocom Technologies, Inc. not held by
the PLDT Group.</p>

<p style='margin-left:.25in' 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"><b><i>Changes in Piltel&#146;s Shareholding</i></b></p>

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

<p style='margin-left:.25in;text-indent:0in' 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='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b><i>ePLDT
Investments in ePLDT Ventus, Inc., or Ventus, and netGames </i></b></p>

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

<p style='margin-left:.25in' 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='margin-left:.25in' style="margin-top:0;margin-bottom:0">Ventus
is a wholly-owned call center subsidiary of ePLDT which was incorporated and
registered with the Securities and Exchange Commission, or SEC, on October 5, 2004.
ePLDT subscribed to 100 million shares at a total par value of Php100 million.
Ventus which owns a 400-seat call center facility located in Iloilo
province and commenced commercial operations in March 2005.  Ventus will be
expanding in Metro Manila with a 270-seat call center facility in Makati and a 640-seat
call center facility in Ortigas, Pasig City to accommodate current and new client requirements.
These facilities are expected to be completed by October 2005 and January 2006,
respectively.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">As at June 30, 2005, 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.  ePLDT sold 3% of
its share in netGames in April 2005.  In June 2005, ePLDT made an additional
capital infusion amounting to Php11 million to netGames.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b><i>Acquisition
of Meridian Telekoms, Inc. or </i></b><b><i>Meridian</i></b></p>

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

<p style='margin-left:.25in' 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% 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 June 30, 2005, the net cash outflow on acquisition was
Php1,285 million, representing cash payments of Php1,242 million, cash acquired
from Meridian of Php4 million and cost directly related to business combination
of Php51 million.</p>

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

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Investments in Associates</i></b></p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Investments
in associates in which we exercise significant influence and which are neither
a subsidiary nor a joint venture of the PLDT Group are accounted for under the
equity method of accounting.  Under the equity method, our investments in
associates are carried in the consolidated balance sheets at cost plus
post-acquisition changes in our share in net assets of the investees, less
impairment in value, if any.  The consolidated statements of income reflect our
share of the results of operations of the associates.  Where there has been a
change recognized directly in the associates&#146; equity, we recognize our share of
any changes and disclose this, when applicable in the consolidated statements
of changes in equity.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b><i>Foreign
Currency Translation</i></b></p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">The
functional and presentation currency of the PLDT Group (except for Mabuhay
Satellite) is the Philippine peso.  Transactions in foreign currencies are
initially recorded in the functional currency rate ruling at the date of the
transaction.  Monetary assets and liabilities denominated in foreign currencies
are retranslated at the functional currency rate of exchange ruling at the balance
sheet date.  All differences are taken to the consolidated statements of income
except for foreign exchange losses that qualified as capitalizable borrowing
costs during construction period.  For income tax purposes, exchange gains or
losses are treated as taxable income or deductible expenses in the period such
are realized.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">The
functional currency of Mabuhay Satellite is U.S. dollars.  As at the reporting
date, the assets and liabilities of this subsidiary are translated into the
presentation currency of the PLDT Group at the rate of exchange ruling at the
balance sheet date and, its income and expenses are translated at the weighted
average exchange rate for the period.  The exchange differences arising on
retranslation are taken directly to a separate component of equity as
cumulative translation adjustments.  On disposal of this subsidiary, the
deferred cumulative amount of translation adjustments recognized in equity
relating to this particular subsidiary shall be recognized in the consolidated
statements of income. </p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b><i>Property,
Plant and Equipment</i></b></p>

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

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

<p style='margin-left:.25in' 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 asset retirement obligation, interest on
borrowed funds used during the construction period and qualified borrowing
costs from foreign exchange losses related to foreign currency-denominated
liabilities used to acquire such assets.  When assets are sold or retired,
their costs and accumulated depreciation, amortization and impairment losses,
if any, 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='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:0in' 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' 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:81.22%;margin-left:54.9pt;border-collapse:collapse'>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' 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;page-break-after:avoid' 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=';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=' padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">Buildings</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">25
 years</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">Cable
 and wire facilities </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">20
 &#150; 25 years</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">Central
 office equipment</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">15
 &#150; 20 years</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">Information
 origination and termination equipment</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
 &#150; 15 years</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">Communications satellite</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">15 years</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">Vehicles
 and other work equipment</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">3
 &#150; 10 years</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">Furniture</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">3
 &#150; 10 years</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">Cellular
 facilities</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">10
 years</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">Land
 improvements</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">10
 years</p>
 </td>
 </tr>
</table></center></div>

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

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

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

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

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Borrowing
costs are generally expensed as incurred.  Borrowing costs are capitalized if
they are directly attributable to the acquisition, construction or production
of a qualifying asset.  Capitalization of borrowing costs commences when the
activities for use 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, as well as exchange differences arising from foreign
currency borrowings used to finance these projects to the extent that they are regarded
as an adjustment to interest cost.  Borrowing costs are treated as deductible
expenses for income tax reporting purposes in the period they are incurred.</p>

<p style='margin-left:.25in' 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"><b><i>Asset Retirement Obligations</i></b></p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">The net
present value of legal obligations associated with the retirement of an item of
property, plant and equipment that resulted from the acquisition, construction
or development and the normal operation of property, plant and equipment is
recognized in the period in which it is incurred.</p>

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

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a
name="OLE_LINK15"><b><i>Investment Properties</i></b></a></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='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Initially,
investment properties are measured at cost including transaction costs.
Subsequent to initial recognition, investment properties are stated at fair
value.  Gains or losses arising from changes in the fair values of investment
properties are included in the consolidated statements of income in the period
in which they arise.  </p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Investment
properties are derecognized when they have either been disposed of or when the
investment property is permanently withdrawn from use and no future benefit is
expected from its disposal.  Any gains and losses on the derecognition of an
investment property are recognized in the consolidated statement of income in
the period of derecognition.</p>

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

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Goodwill</i></b></p>

<p style='margin-left:.25in;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">Goodwill is initially measured at cost being the
excess of the acquisition cost over the fair value of identifiable assets,
liabilities and contingent liabilities.  Following initial recognition,
goodwill is measured at cost less any accumulated impairment losses.  Upon
adoption of PFRS 3, goodwill is no longer amortized.  Goodwill is reviewed for
impairment, annually or more frequently if events or changes in circumstances
indicate that the carrying value may be impaired. </p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">As at
acquisition date, any goodwill acquired is allocated to each of the
cash-generating units expected to benefit from the combination&#146;s synergies.
Impairment is determined by assessing the recoverable amount of the
cash-generating unit, to which the goodwill relates.  Where the recoverable
amount of the cash-generating unit is less than the carrying amount, an
impairment loss is recognized.  Where goodwill forms part of a cash-generating
unit and part of the operation within that unit is disposed of, the goodwill
associated with the operation disposed of is included in the carrying amount of
the operation when determining the gain or loss on disposal of the operation.
Goodwill disposed of in such circumstance is measured on the basis of the
relative values of the operation disposed of and the portion of the
cash-generating unit retained.</p>

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

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

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Intangible
assets acquired separately are capitalized at cost while those acquired arising
from business combinations are initially recognized at fair value as at the
date of acquisition.  Subsequently, intangible assets are measured at cost.  The
useful lives of intangible assets are now assessed at the individual asset
level as having either a finite or indefinite life.  Where an intangible asset
has a finite life, it is amortized over its useful life.  Periods and method of
amortization for intangible assets with finite useful lives are reviewed
annually or earlier where an indicator of impairment exists.  Intangible assets
assessed as having indefinite useful lives are not amortized, as there is no
foreseeable limit to the period over which the asset is expected to generate
net cash inflows for the Group.  However, intangibles with indefinite useful
lives are reviewed annually to ensure the carrying value does not exceed the
recoverable amount regardless of whether an indicator of impairment is present.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Gains
or losses arising from derecognition of an intangible asset are measured as the
difference between the net disposal proceeds and the carrying amount of the
asset and are recognized in the consolidated statements of income when the
asset is derecognized.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Intangible
assets created within the business are not capitalized and expenditure is
charged against profits in the period in which the expenditure is incurred.</p>

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

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

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Property, plant and equipment, investments, goodwill
and other long-lived assets are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount of an asset may not
be recoverable.  Whenever the carrying amount of an asset exceeds its
recoverable amount, an impairment loss is recognized in the consolidated
statements of income.  The recoverable amount is the higher of an asset&#146;s net
selling price or value in use.  The net selling price is the amount obtainable
from the sale of an asset in an arm&#146;s&#150;length transaction while value in use is
the present value of estimated future cash flows expected to arise from the
continuing use of an asset or from its disposal at the end of its useful life.
Recoverable amounts are estimated for individual assets or, if it is not
possible, for the cash-generating unit to which the asset belongs.  Reversal of
impairment losses recognized in prior periods is recorded when there is an
indication that the impairment losses recognized for the asset no longer exist
or have decreased.  The reversal is recorded as income.  However, the increased
carrying amount of an asset due to a reversal of an impairment loss is
recognized to the extent it does not exceed the carrying amount that would have
been determined had the impairment loss not been recognized for that asset in
prior periods.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b><i>Cash
and Cash Equivalents</i></b></p>

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

<p style='margin-left:22.5pt;text-indent:0in' 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 from the date of acquisition and
that are subject to an insignificant risk of change in value.</p>

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

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

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

<p style='text-indent:.25in' style="margin-top:0;margin-bottom:0">Accounts receivable are
stated at face value, net of allowance for doubtful accounts.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b><i>Allowance
for Doubtful Accounts</i></b></p>

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

<p style='margin-left:.25in;text-indent:0in' 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 receivable
amounts that we expect to collect.  These specific reserves are re-evaluated
and adjusted as additional information received affects the amounts estimated.
Second, a provision is established as a certain percentage of age of status of
receivables.  This percentage is based on a collective assessment of historical
collection, write-off, experience and changes in our customer payment terms.
Full allowance is provided for receivables from permanently disconnected
subscribers.  Partial allowance is provided for active subscribers and carriers
based on the age status of receivables.</p>

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

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Inventories and Supplies</i></b></p>

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

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Inventories and supplies which include, among others,
cellular phone units, materials, spare parts, terminal units and accessories,
are valued at the lower of cost or net realizable value.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Cost
is determined using the moving average method.  Net realizable value is the
current replacement cost.</p>

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

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Financial Assets and Liabilities</i></b></p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">We
recognize a financial asset or a financial liability in our consolidated
balance sheets when we become a party to the contractual provisions of the instrument
and derecognize a financial asset when we no longer control the contractual
rights to the cash flows that comprise the financial instrument which is
normally the case when the instrument is sold, or all the cash flows
attributable to the instrument have already expired or are passed through to an
independent third party.  A financial liability (or a part of a financial
liability) is derecognized when the obligation is extinguished.  In the case of
a regular way purchase or sale of financial assets, recognition and
derecognition, as applicable, are done using settlement date accounting.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Financial
assets or financial liabilities are recognized initially at fair value.
Transaction 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.  Fair value is determined by reference to the
transaction price or other market prices.  If such market prices are not
reliably determinable, the fair value of the consideration is estimated as the
sum of all future cash payments or receipts, discounted using the prevailing
market rates of interest for similar instruments with similar maturities.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">After
initial recognition, the following financial assets and liabilities are
measured at amortized cost using the effective interest rate method:  (a) loans
and receivables; (b) held-to-maturity investments; <br>
and (c) financial liabilities other than liabilities measured at fair values
through profit and loss.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Investments
in unquoted equity securities and derivatives linked thereon are measured at
cost.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Amortizations
of discounts and premiums are taken directly to net profit or loss for the
period.  Changes in the fair value of financial assets and liabilities measured
at fair value of (a) all derivatives (except for those eligible for hedge
accounting); (b) other items intended to be actively traded; and (c) any item
designated as held &#147;at fair value through profit and loss&#148; at origination, are
taken directly to net profit or loss for the period.  Changes in the fair value
of available-for-sale securities are recognized in equity, except for the
foreign exchange fluctuations on available-for-sale debt securities and the
interest component which is taken directly to net profit or loss for the period
based on the asset&#146;s effective yield.</p>

<p style='margin-left:.25in' 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">Financial assets and liabilities include financial
instruments which may be a primary instrument,
such as receivables, payables and equity securities, or a derivative
instrument, such as financial options, futures and forwards, interest rate
swaps and currency swaps.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Financial
instruments are classified as a financial liability, or a financial asset or an
equity in accordance with the substance of the contractual arrangement.
Financial instruments that contain both liability and equity elements are
classified separately as financial liabilities, financial assets or equity
instruments.  Interest, dividends, gains and losses relating to a financial
instrument or a component that is a financial liability, are reported as
expense or income.  Distributions to holders of financial instruments
classified as equity are charged directly to equity net of any related income
tax benefits.  Financial instruments are offset when we have a legally enforceable
right to offset and we intend to settle either on a net basis or to realize the
asset and settle the liability simultaneously. </p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">We use
derivative financial instruments such as long-term currency swaps, foreign
currency options, interest rate swaps and forward currency contracts to hedge
our risks associated with foreign currency and interest rate fluctuations.
Such derivative financial instruments are stated at fair value.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Our
criteria for a derivative instrument to be classified as a hedge include: (1)
the hedge transaction is expected to be highly effective in achieving
offsetting changes in fair value or cash flows attributable to the hedged risk,
(2) the effectiveness of the hedge can be reliably measured, (3) there is
adequate documentation of the hedging relationships at the inception of the
hedge, and (4) for cash flow hedges, the forecast transaction that is subject
of the hedge must be highly probable and must present an exposure to variations
in cash flows that could ultimately affect profit or loss.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">For
purposes of hedge accounting, hedges are classified as either fair value hedges
where they hedge the exposure to changes in the fair value of a recognized
asset or liability and firm commitment; or cash flow hedges where they hedge
exposure to variability in cash flows that is either attributable to a
particular risk associated with a recognized asset or liability or a forecasted
transaction.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">In
relation to fair value hedges which meet the conditions for special hedge
accounting, any gain or loss from re-measuring the hedging instrument at fair
value is recognized immediately in the consolidated statements of income.  Any
gain or loss on the hedged item attributable to the hedged risk is adjusted
against the carrying amount of the hedged item and recognized in the
consolidated statements of income.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">In
relation to cash flow hedges, the portion of the gain or loss on the hedging
instrument that is determined to be an effective hedge is recognized directly
in equity and the ineffective portion is recognized in net profit or loss.  The
gains or losses that are accumulated in equity are transferred to the
consolidated statement of income in the same period in which the hedged item
affects the net profit or loss.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">For
derivatives that do not qualify for hedge accounting, any gains or losses
arising from changes in fair value are taken directly to net profit or loss for
the period.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Hedge
accounting is discontinued when the hedging instrument expires or is sold,
terminated or exercised, or no longer qualifies for hedge accounting.  At that
point in time, any cumulative gain or loss on the hedging instrument recognized
in equity is kept in equity until the forecast transaction occurs.  If the
forecast transaction is no longer expected to occur, any net cumulative gain or
loss previously recognized in equity is transferred to net profit or loss for
the period.</p>

<p style='margin-left:.25in' 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"><b><i>Provisions</i></b></p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">We
recognize provisions when we have obligations, legal or constructive, as a
result of past events, if it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.  If the effect of the
time value of money is material, provisions are determined by discounting the expected
future cash flows at a pre-tax rate that reflects current market assessments of
the time value of money and, where appropriate, the risks specific to the
liability.  Where discounting is used, the increase in the provision due to the
passage of time is recognized as an additional provision.</p>

<p style='margin-left:.25in' 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"><b><i>Retirement Benefits</i></b></p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">We have
funded, noncontributory retirement plans, administered by our respective Fund&#146;s
Trustees, covering permanent 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.  Retirement costs include current service cost plus amortization of
past service cost, experience adjustments and changes in actuarial
assumptions.  Past service cost is recognized as an expense on a straight-line
basis over the average period until the benefits become vested.  Actuarial
gains and losses are recognized as income or expense when the net cumulative
unrecognized actuarial gains and losses at the end of the previous reporting
period exceeded 10% of the higher of the defined benefit obligation and the
fair value of plan assets at that date.  These gains and losses are recognized
over the expected average remaining working lives of the employees
participating in the plan.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b><i>Share-Based
Payment Transactions</i></b></p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Certain
of our employees (including directors) receive remuneration in the form of
share-based payment transactions, whereby employees render services in exchange
for shares or rights over shares (&#147;equity-settled transactions&#148;).</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>Equity-settled transactions</i></p>

<p style='margin-left:.25in' 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">The cost of equity-settled transactions with employees
is measured by reference to the fair value of the stock options at the date at
which they are granted.  Fair value is determined using an option-pricing
model, further details of which are given in <i>Note 21 &#150; Employee Benefits</i>.
In valuing equity-settled transactions, no account is taken of any performance
conditions, other than conditions linked to the price of the shares of PLDT
(&#147;market conditions&#148;).</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">The
cost of equity-settled transactions is recognized, together with a
corresponding increase in equity, over the period in which the performance
conditions are fulfilled, ending on the date on which the relevant employees
become fully entitled to the award (&#147;vesting date&#148;).  The cumulative expense
recognized for equity-settled transactions at each reporting date until the
vesting date reflects the extent to which the vesting period has expired and
the number of awards that will ultimately vest, in the opinion of PLDT&#146;s Board
of Directors at that date, based on the best available estimate.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">No expense
is recognized for awards that do not ultimately vest, except for awards where
vesting is conditional upon a market condition, which are treated as vesting
irrespective of whether or not the market condition is satisfied, provided that
all other performance conditions are satisfied.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Where
the terms of an equity-settled award are modified, an expense, as a minimum, is
recognized as if the terms had not been modified.  An expense is recognized for
any increase in the value of the transactions as a result of the modification,
as measured at the date of modification.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Where an
equity-settled award is cancelled, it is treated as if it had vested on the
date of cancellation, and any expense not yet recognized for the award is
recognized immediately.  However, if a new award is substituted for the
cancelled award, and designated as a replacement award on the date that it is
granted, the cancelled and new awards are treated as if they were a
modification of the original award, as described in the previous paragraph.</p>

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

<p style='margin-left:.25in' 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 share, see <i>Note 7 &#150; Earnings Per
Common Share</i>.</p>

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

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

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Our
Long-Term Incentive Plan, or LTIP, grants share appreciation rights, or SARs,
to our eligible key executives and advisors.  Under the LTIP, we recognize the
services we receive from the eligible key executives and advisors, and our
liability to pay for those services, as the eligible key executives and
advisors render services during the vesting period.  We measure our liability,
initially and at each reporting date until settled, at the fair value of the
SARs, by applying an option valuation model, taking into account the terms and
conditions on which the SARs were granted, and the extent to which the eligible
key executives and advisors have rendered service to date.  We recognize any
changes in fair value at each reporting date until settled, in profit and loss
for the period.</p>

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

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

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Lease
obligations having provisions for bargain purchase options, ownership transfer
at the end of the lease term, or minimum lease payments, which approximate the
fair market value of the property are capitalized.  The related obligations are
recognized as liabilities.  Finance lease payments are apportioned between the
finance charges and reduction of the lease liability so as to achieve a
constant rate of interest on the remaining balance of the liability.</p>

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

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

<p style='margin-left:.25in' 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 added to the carrying amount of the
leased assets and liabilities 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='margin-left:.25in' 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"><b><i>Revenue Recognition</i></b></p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Revenues
for services are stated at amounts invoiced to customers and exclude
value-added tax.  We provide wireless communication services, fixed line
communication services, and information and communications technology services.
We provide such services to mobile, business, residential and payphone
customers.  Revenues, which exclude value-added tax, represent the value of
fixed consideration that have been received or are receivable.  Revenues are
recognized when there is evidence of an arrangement, collectibility is
reasonably assured and the delivery of the product or service has occurred. </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>Service revenues</i></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:.75in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Subscriptions</i></p>

<p style='margin-left:.25in;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">We provide telephone and data communication services under prepaid and
postpaid payment arrangements.  Revenues include fees for installation and
activation are accrued upon subscription.</p>

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

<p style='margin-left:.75in' style="margin-top:0;margin-bottom:0"><i>Air
time, traffic and value-added services</i></p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Prepaid service revenues collected in advance are deferred
and recognized based on the earlier of actual usage or upon expiration of the
usage period.  Interconnection revenues 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 connection
is provided, net of amounts payable to other telecommunication carriers for
terminating calls in their territories.  Revenues related to products and
value-added services are recognized upon delivery of the product or service.</p>

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

<p style='margin-left:.75in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Directory services.</i></p>

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

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

<p style='margin-left:.25in;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">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='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>Non-service revenues</i></p>

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

<p style='margin-left:.75in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Handset and equipment sales</i></p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Sales
of cellular handsets and communication equipment are recognized upon delivery
to the customer.</p>

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

<p style='margin-left:.3in;text-indent:.2in' style="margin-top:0;margin-bottom:0"><i>Others</i></p>

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

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

<p style='margin-left:.25in' 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">Deferred income tax is provided, using the balance
sheet liability method, on all temporary differences at the balance sheet date
between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Deferred
income tax liabilities and assets are recognized for all taxable temporary
differences.  Deferred income tax assets are recognized for all deductible temporary
differences, carryforward of unused tax credits from excess minimum corporate income
tax, or MCIT, and unused tax losses, to the extent that it is probable that
taxable profit will be available against which the deductible temporary
differences and carryforward of unused tax credits and unused tax losses can be
utilized.  Deferred income tax, however, is not recognized when it arises from
the initial recognition of an asset or liability in a transaction that is not a
business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Deferred
tax liabilities are not provided on non-taxable temporary differences
associated with investments in domestic subsidiaries and associates.  With
respect to investments in other subsidiaries and associates, deferred tax
liabilities are recognized except when the timing of the reversal of the
temporary difference can be controlled and it is probable that the temporary
difference will not reverse in the foreseeable future.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">The
carrying amount of deferred income tax assets is reviewed at each balance sheet
date and reduced to the extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of the deferred income
tax asset to be utilized.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Deferred
income tax assets and liabilities are measured at the tax rate that are
expected to apply to the period when the asset is realized or the liability is
settled, based on tax rate (and tax laws) that have been enacted or
substantively enacted at balance sheet date.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Income tax
relating to items recognized directly in equity is recognized in equity and not
in the consolidated statements of income.</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"><b><i>Earnings Per Common Share, or EPS</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">Basic EPS is calculated by dividing the net income for
the period attributable to common shareholders (net income adjusted for dividends
on all series of preferred shares except for dividends on preferred stock
subject to mandatory redemption) by the weighted average number of common
shares outstanding during the period, after giving retroactive effect to any
stock dividend declarations.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Diluted
EPS is calculated in the same manner assuming that, at the beginning of the
period or at the time of issuance during the period, all outstanding options
are exercised and convertible preferred shares are converted to common shares
and appropriate adjustments to net income are effected for the related expenses
on preferred 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="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' 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 have an anti-dilutive effect, basic and diluted EPS
are stated at the same amount.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">If
the required dividends to be declared on each series of convertible preferred
shares divided by the number of equivalent common shares, assuming such
convertible preferred shares are converted to common shares, would decrease the
basic EPS, then such convertible preferred shares would be deemed dilutive.  As
such, the diluted EPS will be calculated by dividing net income attributable to
common shareholders (net income, adding back any dividends and/or other charges
recognized in the period related to the dilutive convertible preferred shares
classified as liability, less dividends on non-dilutive preferred shares except
for dividends on preferred stock subject to mandatory redemption) by the
weighted average common shares including the common share equivalent arising
from the conversion of the dilutive convertible preferred shares.</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-top:0;margin-bottom:0"><b>3.   Management&#146;s
Use of Estimates</b></p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Our
unaudited consolidated financial statements prepared in Philippine GAAP require
management to make estimates and assumptions that affect amounts reported in
our unaudited consolidated financial statements and related notes.  In
preparing our unaudited consolidated financial statements, we have made our
best estimates and judgments of certain amounts, giving due consideration to
materiality.  We believe the following represent a summary of these significant
estimates and judgments and related impact and associated risks in our
unaudited consolidated financial statements.</p>

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

<p style='margin-left:.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>Estimating
useful lives of property, plant and equipment</i></p>

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

<p style='margin-left:.25in;text-indent:0in' 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 operating expenses and decrease our noncurrent
assets.  Property, plant and equipment amounted to Php190,176
million and Php194,525 million as at June 30, 2005 and December 31, 2004, respectively.</p>

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

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

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Philippine
GAAP requires that an impairment review be performed when certain impairment
indicators are present.  In case of goodwill and intangible assets with
indefinite life, such assets are subject to yearly impairment test and whenever
there is an indication that such asset may be impaired.</p>

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

<p style='margin-left:.25in;text-indent:0in' 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, including intangible assets and contingent liabilities.
Our business acquisitions have resulted in goodwill.  Instead, goodwill is
subject to a periodic impairment test.  </p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Determining
the fair value of property, plant and equipment, investments and intangible
assets, which requires the determination of future cash flows expected to be
generated from the continued use and ultimate disposition of such assets,
requires us to make estimates and assumptions that can materially affect our
unaudited 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="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">The
preparation 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
charges under Philippine GAAP.  </p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Total
goodwill and intangible assets as at June 30, 2005 and December 31, 2004 amounted to Php3,727 million and Php3,864 million,
respectively.</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"><a
name="OLE_LINK10"><i>Investment properties</i></a></p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">We have
adopted the fair value approach in determining the carrying value of our
investment properties.  While we have opted to rely on independent appraisers
to determine the fair value of our investment properties, such fair value was
determined based on recent prices of similar properties, with adjustments to reflect any changes in economic conditions since
the date of the transactions that occurred at those prices.  The amounts and
timing of recorded changes in fair value for any period would differ if we made
different judgments and estimates or utilized different basis for determining
fair value.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Total
investment properties as at June 30, 2005 and December 31, 2004 amounted to Php732 million and Php743 million, respectively.</p>

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

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

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">We review
the carrying amounts at each balance sheet date and reduce deferred tax assets
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.  </p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Unrecognized
deferred tax assets as at June 30, 2005 and December 31, 2004 amounted to Php12,416 million and Php13,824 million, respectively.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><i>Financial
assets and liabilities</i></p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Philippine
GAAP requires that we carry certain of our financial assets and liabilities at
fair value, which requires extensive use of accounting estimates and judgment.
In addition, certain liabilities acquired through debt exchange and
restructuring are required to be carried at fair value at the time of the debt
exchange and restructuring, see <i>Note</i> <i>24 &#150; Financial Assets and
Liabilities</i>.  While significant components of fair value measurement were
determined using verifiable objective evidence (i.e., foreign exchange rates,
interest rates, volatility rates), the amount of changes in 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="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">The fair
value of financial assets and liabilities as at June 30, 2005 amounted to Php48,479 million and Php170,205 million, respectively.  </p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">The fair
value of financial assets and liabilities as at December 31, 2004 amounted to Php46,439 million and Php194,613 million, respectively.  </p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><i>Estimating
allowance for doubtful accounts</i></p>

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

<p style='margin-left:.25in;text-indent:0in' 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.  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='margin-left:.25in;text-indent:0in' 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 operating expenses
and decrease our current assets.  </p>

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

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Provision
for doubtful accounts amounted to Php1,526 million and
Php1,875 million for the six months ended June 30, 2005 and 2004, respectively.  Trade and other receivables, net of allowance for
doubtful accounts, amounted to Php8,457 million and
Php10,404 million as at June 30, 2005 and December 31, 2004, respectively.</p>

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

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

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

<p style='margin-left:.25in;text-indent:0in' 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.  </p>

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

<p style='margin-left:.25in;text-indent:0in' 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 are based on our observed traffic adjusted by
our normal experience adjustments, which historically are not material in our
unaudited 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="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Revenues
under a multiple element arrangement specifically applicable to our wireless
business were split into separately identifiable components and recognized when
the related components were delivered in order to reflect the substance of the
transaction.  The fair value of components was determined using verifiable
objective evidence.  Revenue for handset sales has been quantified and
identified separately using the residual value method from our cellular service
revenue.  </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>Pension and other retirement benefits</i></p>

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

<p style='margin-left:.25in;text-indent:0in' 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 21 &#150;
Employee Benefits</i> and include among others, discount rates, expected
returns on plan assets and rates of compensation increase.  In accordance with
Philippine 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.  </p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Unrecognized
net actuarial gain as at June 30, 2005 and December 31, 2004 amounted to Php176 million.</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>Legal Contingencies</i></p>

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

<p style='margin-left:.25in;text-indent:0in' 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 <i>Note 23 &#150; Provisions and Contingencies.</i></p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Outstanding
provisions to cover these contingencies amounted to Php4,767
million and Php4,548 million as at June 30, 2005 and December 31, 2004, respectively.</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%;page-break-after:avoid;border:none;
padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4.   Segment Information</b></p>

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

<p style='margin-left:.25in;text-indent:0in' 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 2 &#150; Summary of Significant Accounting Policies and
Practices</i>.</p>

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

<p style='text-indent:.25in' 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:.5in;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 very small aperture terminal, or
VSAT, operators, namely PLDT&#146;s subsidiaries Mabuhay Satellite, ACeS Philippines
and Telesat;</p>

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

<p style='margin-left:.5in;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:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:-.25in;page-break-after:
avoid' 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., or Parlance,
Vocativ Systems, Inc., or Vocativ and Ventus; internet access and gaming
services provided by ePLDT&#146;s subsidiaries Infocom Technologies, Inc., Digital
Paradise and netGames; and e-commerce and IT-related services provided by other
investees of ePLDT, as described in <i>Note 9 &#150; Investments in Associates</i>.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">The
segment assets and liabilities and results of operations of the segments in
2004 have been restated to reflect the effects of the change in accounting policies.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">The
segment assets as at June 30, 2005 and December
 31, 2004 and results of operations of
our reportable segments for the six months ended June 30, 2005 and 2004 reported
under Philippine GAAP are as follows:</p>

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

 <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='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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <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'>
 <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'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></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"><i>&nbsp;</i></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">&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">&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">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><i>As at and for the six
 months ended </i><i>June 30, 2005</i><i> (Unaudited)</i></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></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">&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">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b>Revenues</b></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='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">&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">&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">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Service</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">36,703</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">24,214</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">1,328</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(2,723)</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">59,522</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Non-service</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">1,291</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">215</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(84)</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">1,422</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Others</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">57</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">122</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">44</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(29)</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"> 194</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">Segment revenues</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">38,051</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">24,336</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">1,587</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(2,836)</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">61,138</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-top:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <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'>
 <p 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'>
 <p 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'>
 <p 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'>
 <p 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'>
 <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=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b>Result</b></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">&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">&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">&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">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Income before income tax</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">17,592</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">4,850</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">69</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">22,511</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Provision for income tax</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">4,217</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">1,471</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">6</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">&#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:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">5,694</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Net income for the period</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">13,375</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,379</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">  63</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;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:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">16,817</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <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'>
 <p 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'>
 <p 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'>
 <p 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'>
 <p 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'>
 <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=' padding:0in 0in 0in 0in'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Assets</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">&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">&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">&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">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Segment assets</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">91,611</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">198,300</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">4,199</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(43,212)</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">250,898</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <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;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">557</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">11,729</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">5</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">&#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:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">12,291</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <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;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">92,168</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">210,029</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,204</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(43,212)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">263,189</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <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'>
 <p 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'>
 <p 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'>
 <p 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'>
 <p 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'>
 <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=' padding:0in 0in 0in 0in'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Other segment information </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"><b>&nbsp;</b></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"><b>&nbsp;</b></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"><b>&nbsp;</b></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"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Capital expenditures</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">3,577</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">3,129</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">306</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">7,012</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' 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">4,970</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">5,704</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">187</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">10,861</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Provisions</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">437</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">1,531</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">&#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">1,968</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Interest on loans and related items - net
 of capitalized interest</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">898</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">4,541</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">14</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">5,453</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <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;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(543)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(193)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='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;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:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(741)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.8pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:4.8pt'>
 <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;
 height:4.8pt'>
 <p 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;
 height:4.8pt'>
 <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;
 height:4.8pt'>
 <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;
 height:4.8pt'>
 <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;
 height:4.8pt'>
 <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'>
 <td   colspan=5 valign=bottom style=' padding:0in 0in 0in 0in;
 height:12.0pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0"><i>As at </i><i>December 31, 2004</i><i> (Audited) and for the six months ended </i><i>June 30, 2005</i><i>
 (Unaudited)</i></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b>Revenues</b></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='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">&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">&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">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Service</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">33,983</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">24,108</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">953</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,203)</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">57,841</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Non-service</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">4,235</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">161</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(85)</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">4,311</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Others</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">135</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">107</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">13</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(108)</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"> 147</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">Segment revenues</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">38,353</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">24,215</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">1,127</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,396)</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">62,299</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-top:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <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'>
 <p 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'>
 <p 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'>
 <p 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'>
 <p 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'>
 <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=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b>Result</b></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">&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">&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">&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">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Income before income tax</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">15,298</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">908</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">53</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">16,259</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Provision for income tax</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">3,529</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">284</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <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;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;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,811</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Net income for the period</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">11,769</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 624</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">  55</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;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:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">12,448</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <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'>
 <p 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'>
 <p 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'>
 <p 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'>
 <p 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'>
 <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=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b>Assets</b></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">&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">&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">&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">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Segment assets</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">94,623</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">198,090</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">3,716</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(43,694)</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">252,735</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <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;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=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">12,721</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">9</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">&#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:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">12,738</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <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;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">94,631</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">210,811</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,725</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(43,694)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">265,473</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <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'>
 <p 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'>
 <p 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'>
 <p 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'>
 <p 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'>
 <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=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b>Other segment
 information </b></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"><b>&nbsp;</b></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"><b>&nbsp;</b></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"><b>&nbsp;</b></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"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Capital expenditures</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">8,827</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">2,673</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">75</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">&#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">11,575</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' 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">5,779</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">5,000</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">148</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">&#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">10,927</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Provisions</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">608</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">1,568</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">&#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">2,176</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Interest on loans and related items - net
 of capitalized interest</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">852</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">5,324</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">25</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">6,201</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <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;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(367)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(98)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(3)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;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:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(468)</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.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%;page-break-after:avoid;border:none;
padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>5.   Revenues and Expenses</b></p>

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

<p style='margin-left:.25in;text-align:justify' style="margin-top:0;margin-bottom:0"><i>Non-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:96.86%;margin-left:18.4pt;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-top:3.0pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</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'>
 <p align=center style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Six Months Ended June 30,</b></p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <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;padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2005</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:13.45pt'>
 <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-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2004</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;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   colspan=3 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:2.9pt;
 margin-bottom:0in;margin-left:.65in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Unaudited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top 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=center style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:40.55pt;text-align:center' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Sale of handsets and SIM-packs</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,291</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">4,235</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>131</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">76</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;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>1,422</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 0in 0in 0in'>
 <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=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;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">4,311</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in;text-align:justify' style="margin-top:0;margin-bottom:0"><i>Compensation and Benefits</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:96.86%;margin-left:18.4pt;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-top:3.0pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</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'>
 <p align=center style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Six Months Ended June 30,</b></p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <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;padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2005</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:13.45pt'>
 <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-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2004</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;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   colspan=3 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:2.9pt;
 margin-bottom:0in;margin-left:.65in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Unaudited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top 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=center style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:40.55pt;text-align:center' style="margin-top:0;margin-bottom:0">(in million
 pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Salaries and benefits</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>5,455</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">5,177</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Incentive plans (Note 21)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>610</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">269</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Pension and
 other benefits (Note 21)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>384</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">367</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Manpower
 rightsizing program</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>43</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">183</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;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>6,492</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 0in 0in 0in'>
 <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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;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">5,996</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:.25in' 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:96.86%;margin-left:18.4pt;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-top:3.0pt;text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</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'>
 <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>Six
 Months Ended June 30,</b></p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2005</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2004</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 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:2.9pt;
 margin-bottom:0in;margin-left:.65in;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0">(Unaudited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top 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=center style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:40.55pt;text-align:center' style="margin-top:0;margin-bottom:0">(in million pesos)</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">Interest on loans and related items</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>5,656</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">6,503</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Accretion
 on financial liabilities - net (Notes 2, 17 and 24)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,437</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">1,496</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Hedge costs
 (Note 24)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>557</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">567</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Dividends
 on preferred stock subject to mandatory redemption (Note 17)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>132</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">117</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=left style='margin:0in;margin-bottom:.0001pt;
 text-align:left;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">Financing charges (Note 7)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>74</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">86</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Foreign
 exchange losses (gains) - net (Notes 17 and 24)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.7pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(1,376)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">1,397</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">Loss (gain) on derivative transactions - net (Notes 2 and
 24)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.7pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(1,187)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">505</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">Interest income</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.7pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(741)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.7pt;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:.7pt;text-align:right' style="margin-top:0;margin-bottom:0">(468)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Capitalized
 interest (Notes 2 and 8)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.7pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(203)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.7pt;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:.7pt;text-align:right' style="margin-top:0;margin-bottom:0">(302)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;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>4,349</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 0in 0in 0in'>
 <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=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;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">9,901</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:.25in;text-align:justify;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>Cost of Sales</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:96.86%;margin-left:18.4pt;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-top:3.0pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</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'>
 <p align=center style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Six Months Ended June 30,</b></p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <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;padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2005</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:13.45pt'>
 <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-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2004</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;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   colspan=3 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:2.9pt;
 margin-bottom:0in;margin-left:.65in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Unaudited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;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   colspan=3 valign=top style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:40.55pt;text-align:center' style="margin-top:0;margin-bottom:0">(in million
 pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cost of
 handsets and SIM-packs sold</p>
 </td>
 <td   valign=bottom 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"><b>3,149</b></p>
 </td>
 <td   valign=bottom 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">&nbsp;</p>
 </td>
 <td   valign=bottom 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">6,478</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Cost of satellite air time (Notes 20 and 22)</p>
 </td>
 <td   valign=bottom 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"><b>122</b></p>
 </td>
 <td   valign=bottom 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">&nbsp;</p>
 </td>
 <td   valign=bottom 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">121</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p style='margin: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>
 </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 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"><b>3,271</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 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">&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 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">6,599</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in;text-align:justify' style="margin-top:0;margin-bottom:0"><i>Provisions</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:96.86%;margin-left:18.4pt;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-top:3.0pt;text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</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'>
 <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>Six
 Months Ended June 30,</b></p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2005</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2004</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 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:2.9pt;
 margin-bottom:0in;margin-left:.65in;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0">(Unaudited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top 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=center style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:40.55pt;text-align:center' style="margin-top:0;margin-bottom:0">(in million
 pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Doubtful accounts (Note 14)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,526</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">1,875</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Write-down
 of inventories at net realizable value (Note 15)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>325</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">128</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;punctuation-wrap:
 hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">Onerous contracts (Notes 20 and 22)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>117</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <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'>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;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>1,968</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 0in 0in 0in'>
 <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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;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">2,176</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in;text-align:justify;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>Other Expenses</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:96.86%;margin-left:18.4pt;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-top:3.0pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</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'>
 <p align=center style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Six Months Ended June 30,</b></p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <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;padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2005</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:13.45pt'>
 <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-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2004</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;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   colspan=3 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:2.9pt;
 margin-bottom:0in;margin-left:.65in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Unaudited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;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   colspan=3 valign=top style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:40.55pt;text-align:center' style="margin-top:0;margin-bottom:0">(in million
 pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Operating
 expenses</p>
 </td>
 <td   valign=bottom 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"><b>1,507</b></p>
 </td>
 <td   valign=bottom 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">&nbsp;</p>
 </td>
 <td   valign=bottom 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">1,411</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Equity in net losses of associates</p>
 </td>
 <td   valign=bottom 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"><b>&#150;</b></p>
 </td>
 <td   valign=bottom 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">&nbsp;</p>
 </td>
 <td   valign=bottom 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">36</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=bottom 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"><b>233</b></p>
 </td>
 <td   valign=bottom 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">&nbsp;</p>
 </td>
 <td   valign=bottom 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">101</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 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"><b>1,740</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 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">&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 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">1,548</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.25in;text-align:justify;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</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 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-top:0;margin-bottom:0"><b>6.   Income
Taxes</b></p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">The net
components of deferred income tax recognized in the consolidated balance sheets
are as follows:</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:96.86%;margin-left:18.4pt;border-collapse:collapse'>
 <tr style='height:13.9pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;height:13.9pt'>
 <p style='margin-top:3.0pt;margin-right:0in;margin-bottom:
 0in;margin-left:0in;margin-bottom:.0001pt;punctuation-wrap:hanging;
 text-autospace:ideograph-numeric ideograph-other' 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:13.9pt'>
 <p align=right style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>June 30, <br>
 2005</b><b> (Unaudited)</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:13.9pt'>
 <p align=right style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' 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;height:13.9pt'>
 <p align=right style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">December 31, 2004<br>
 (Audited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='margin-bottom:3.0pt;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:9.35pt'>
 <p align=center style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:31.65pt;text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Net assets</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"><b>12,291</b></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=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">12,738</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">Net liabilities</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>1,955</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 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: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">1,943</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">The
components of net deferred tax assets and liabilities are as follows:</p>

<p style='margin-left:.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:96.86%;margin-left:18.4pt;border-collapse:collapse'>

 <tr>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.5pt;
 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:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>June 30, <br>
 2005</b><b> (Unaudited)</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:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' 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'>
 <p align=right style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">December 31, 2004<br>
 (Audited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.0pt'>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:8.0pt'>
 <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;height:8.0pt'>
 <p align=center style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:31.65pt;text-align:center' style="margin-top:0;margin-bottom:0">(in million
 pesos)</p>
 </td>
 </tr>

 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;punctuation-wrap:
 hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">Net assets</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"><b>&nbsp;</b></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">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Unrealized foreign exchange
 losses</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"><b>9,904</b></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">11,214</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Allowance 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"><b>5,417</b></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">4,068</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Unearned revenues</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"><b>2,883</b></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">1,939</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Unamortized past service cost</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"><b>1,036</b></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">1,130</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Pension and other 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"><b>899</b></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">761</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Provisions for unrealized assets</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"><b>451</b></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">453</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Derivative instruments</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"><b>346</b></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">595</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Accumulated write-down of
 inventories at net realizable value</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"><b>330</b></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">190</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Interest charges capitalized</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(4,885)</b></p>
 </td>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(4,558)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Foreign exchange differential
 capitalized</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(1,995)</b></p>
 </td>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,520)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Preferred stock subject to
 mandatory redemption</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(814)</b></p>
 </td>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,042)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Taxes and duties capitalized</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(550)</b></p>
 </td>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(582)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Excess of fair value over cost
 of investment properties</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(106)</b></p>
 </td>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(106)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Net loss operating carryover, or
 NOLCO</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"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' 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=' 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>
 </tr>
 <tr>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(625)</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">&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">193</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;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;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>12,291</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;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;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">12,738</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Net liabilities</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"><b>&nbsp;</b></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">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Unearned revenues</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"><b>545</b></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">673</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">NOLCO</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"><b>257</b></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">1,063</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Provisions
 for unrealizable assets</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"><b>125</b></p>
 </td>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">13</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Accumulated write-down of
 inventories at net realizable value</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"><b>31</b></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">203</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Gain on debt exchange and
 restructuring</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(1,802)</b></p>
 </td>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(2,958)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Intangibles and fair value
 adjustment on assets acquired</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(1,157)</b></p>
 </td>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,231)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Derivative instruments</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(46)</b></p>
 </td>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">20</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Allowance 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"><b>&#150;</b></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">798</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Foreign
 exchange differential capitalized</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"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(644)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Interest charges capitalized</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"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(485)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Unrealized foreign exchange
 losses</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"><b>&#150;</b></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">432</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Others</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"><b>92</b></p>
 </td>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">173</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;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 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(1,955)</b><b> </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 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 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,943)</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Provision
for income tax consists of:</p>

<p style='margin-left:.25in;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:96.86%;margin-left:18.4pt;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-top:3.0pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</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'>
 <p align=center style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Six Months Ended June 30,</b></p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <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;padding:0in 0in 0in 0in;
 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>2005</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:13.45pt'>
 <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-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;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">2004</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;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   colspan=3 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:2.9pt;
 margin-bottom:0in;margin-left:.65in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Unaudited)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid;height:6.2pt'>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in;
 height:6.2pt'>
 <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;height:6.2pt'>
 <p align=center style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:40.55pt;text-align:center' style="margin-top:0;margin-bottom:0">(in million pesos)</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">Current</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"><b>5,003</b></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:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,230</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.75pt'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:6.75pt'>
 <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;padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>691</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;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:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(419)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;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;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>5,694</b></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: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'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,811</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">The
reconciliation between the provision for income tax at the applicable statutory
tax rates and the actual provision for income tax follows:</p>

<p style='margin-left:.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:96.86%;margin-left:18.4pt;border-collapse:collapse'>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:3.0pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</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'>
 <p align=center style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Six Months Ended June 30,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:3.0pt;text-align:center;
 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:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2005</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:3.0pt;margin-right:2.9pt;
 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;border-top:
 solid windowtext 1.0pt;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">2004</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.0pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:3.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:3.0pt'>
 <p align=center style='margin-top:0in;margin-right:2.9pt;
 margin-bottom:0in;margin-left:.65in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Unaudited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.0pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:3.0pt'>
 <p align=center style='text-align:center;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;height:3.0pt'>
 <p align=center style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:40.55pt;text-align:center' style="margin-top:0;margin-bottom:0">(in million
 pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <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">Provision
 for income tax at statutory tax rate</p>
 </td>
 <td   valign=bottom style=' background:white;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>7,203</b></p>
 </td>
 <td   valign=bottom style=' background:white;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>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:white;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">5,203</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;page-break-after:
 avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">Tax effects of:</p>
 </td>
 <td   valign=bottom style=' background:white;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>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:white;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=' background:white;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>
 </tr>
 <tr style='page-break-inside:avoid;height:6.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Non-deductible expenses </p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>245</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <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;
 height:6.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">557</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.45pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Income subject to lower tax rate</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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"><b>113</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p align=right style='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;
 height:9.45pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(66)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Equity share in net losses of investees including provision <br>
 for decline in value of investments in associates</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"><b>1</b></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"><b>&nbsp;</b></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">10</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Net reversal of deferred income tax assets</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"><b>(1,638)</b></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='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(172)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Income
 subject to final tax</p>
 </td>
 <td   valign=bottom style=' background:white;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(228)</b></p>
 </td>
 <td   valign=bottom style=' background:white;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>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:white;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(246)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Income not subject to tax</p>
 </td>
 <td   valign=bottom style=' background:white;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(2)</b></p>
 </td>
 <td   valign=bottom style=' background:white;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>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:white;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,475)</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;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Actual
 provision for income tax</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;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>5,694</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;
 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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;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">3,811</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in;text-indent:0in' 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 special income tax rate of 5% of gross income, as defined in the
Act.</p>

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

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Parlance
is registered with the BOI as a new IT export service firm in the field of
customer interaction center on a pioneer status.  Under this registration,
Parlance shall be entitled to certain tax incentives like ITH for six years
starting June 2002.  Parlance is required to comply with specific terms and
conditions stated in the BOI registration.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">iPlus
Intelligent Network, Inc., or iPlus, is registered with the BOI as a new IT
service firm in the field of application service provider on a pioneer status.
Under such registration, iPlus is entitled to a six-year ITH incentive from the
actual start of commercial operations until January 1, 2009.  Income derived from non-registered activities is subject to a normal income tax rate of
32%.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Vocativ is
registered with the PEZA as an Ecozone Export Enterprise to develop and operate
a call center business that serves overseas clients by providing customer
relationship management services.  As a registered enterprise, Vocativ is
entitled to certain tax and nontax incentives which include, among others, tax
and duty-free importations, exemption from local taxes and ITH for four years
from start of commercial operations.  After the ITH period, Vocativ is liable
for a final tax, in lieu of all taxes after the expiration of its incentives.
The final tax is computed at 5% of gross income less allowable deductions as
defined under R.A. No. 7916, &#147;The Special Economic Zone Act of 1995,&#148; and shall
be paid and remitted in accordance with the amendments contained in R.A. No.
8748, as follows: (a) 3% to the National Government; and (b) 2% which shall be
directly remitted by the business establishments to the treasurer&#146;s office of
the municipality or city where the enterprise is located.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">mySecureSign,
Inc., or mSSI, is registered with the BOI as a new IT service firm in the field
of services related to public key infrastructure on a pioneer status. Under
such registration, mSSI enjoys, among other incentives, a six-year ITH from August 1, 2001 or actual start of commercial operations, whichever comes first.  mSSI
started commercial operations on January 1, 2002.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Ventus is
registered with the BOI as a new IT export service firm in the field of
customer interaction center on a pioneer status.  Under this registration,
Ventus shall be entitled to certain tax incentives such as ITH for six years
starting March 2005.  In relation to this, Ventus is required to comply with
specific terms and conditions stated in the BOI registration.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">On May 3, 2001, the BOI awarded Smart pioneer status for its GSM expansion projects entitling
it to a three-year ITH which expired on May 2, 2004.  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.  In this case, the tax incentive is availed for the entire
taxable income of the project.  The BOI registration for this project was
cancelled effective September 14, 2004, which resulted in the termination of
all incentives granted to Smart by virtue of its registration.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Wolfpac
Communications, Inc., or Wolfpac, is registered with the BOI as a new operator
of service provider applications.  Under the terms of its registration, it is
entitled to certain tax and non-tax incentives which include, among others, an
ITH for four years from February 2004.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Meridian
is registered with the BOI as a new operator of telecommunications systems
(inter-exchange carrier for data services).  Under the terms of its
registration, Meridian is entitled to certain tax and non-tax incentives which
include, among others, an ITH for six years from February 2001 or the actual
start of commercial operations, whichever comes first, and additional deduction
for labor expense for the first five years from the date of registration.  </p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Consolidated
tax incentives availed for the six months ended June 30, 2005 and 2004 amounted
to Php43 million and Php1,554 million, respectively.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Smart&#146;s
deferred income tax assets and liabilities as at June 30, 2005 and December 31, 2004 have been recorded to the extent that such deferred tax assets are
expected to be utilized against sufficient future taxable profit.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Certain
deferred income tax assets have not been recognized as it is not probable that
taxable profits will be sufficient against which they can be utilized.  The
components of deductible temporary differences for which no deferred tax asset
is recognized in the consolidated balance sheets 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='width:96.86%;margin-left:18.4pt;border-collapse:collapse'>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:3.0pt;text-align:center;
 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:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>June 30, <br>
 2005</b><b> (Unaudited)</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:2.9pt;
 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=' 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:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">December 31, 2004<br>
 (Audited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.0pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:3.0pt'>
 <p align=center style='text-align:center;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;height:3.0pt'>
 <p align=center style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:9.05pt;text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <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">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"><b>9,493</b></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">10,090</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <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">Unrealized
 foreign exchange losses</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"><b>1,711</b></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">1,938</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <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">Allowance
 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"><b>755</b></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">746</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.45pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">MCIT</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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"><b>383</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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">305</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.45pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">NOLCO</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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"><b>27</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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">29</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <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">Unearned
 revenues on co-location 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"><b>&#150;</b></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">470</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Provision
 for other assets</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <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=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <p align=right 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:6.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">133</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <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">Unearned
 revenues on sale of prepaid cards</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"><b>&#150;</b></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">73</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;page-break-after:
 avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">Others</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"><b>47</b></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">40</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;
 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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;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>12,416</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;
 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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;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">13,824</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 consolidated unutilized NOLCO as at June 30, 2005 is detailed 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:96.86%;margin-left:18.4pt;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 style='margin-top:3.0pt;text-align:justify' style="margin-top:0;margin-bottom:0"><b>Year
 Incurred</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-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>Year
 Expiring</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:.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(in million pesos)</b></p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">2002</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">2005</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">775</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">2003</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">2006</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>
 </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='text-align:justify' style="margin-top:0;margin-bottom:0">2004</p>
 </td>
 <td   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' style="margin-top:0;margin-bottom:0">2007</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">72</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;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:
 double windowtext 1.5pt;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:
 double windowtext 1.5pt;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"> 852</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.45pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:9.45pt'>
 <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;padding:0in 0in 0in 0in;
 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">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Tax benefit</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <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;
 height:6.75pt'>
 <p align=right style='margin-right:2.9pt;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:6.75pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:6.75pt'>
 <p style="margin-top:0;margin-bottom:0">Unrecognized deferred
 income tax assets as at June 30,
 2005</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:6.75pt'>
 <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;height:6.75pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">(27)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.75pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:6.75pt'>
 <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 1.5pt;padding:0in 0in 0in 0in;height:6.75pt'>
 <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;height:6.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 257</p>
 </td>
 </tr>
</table></center></div>

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

<p style="margin-top:0;margin-bottom:0"><a name="OLE_LINK34">&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="margin-top:0;margin-bottom:0"><b>7.   Earnings
Per Common Share</b></p>

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

<p style='margin-left:.25in;text-align:justify' style="margin-top:0;margin-bottom:0">The following table presents information necessary to
calculate the earnings per common share:</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:99.9%;margin-left:18.4pt;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-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=6 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>Six
 Months Ended June 30,</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   colspan=3 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:3.0pt;margin-right:.05pt;
 margin-bottom:0in;margin-left:31.55pt;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>2005</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:3.0pt;margin-right:.05pt;
 margin-bottom:0in;margin-left:31.55pt;margin-bottom:.0001pt;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'>
 <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">2004</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.0pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:8.0pt'>
 <p align=right style='margin-top:0in;margin-right:2.9pt;
 margin-bottom:0in;margin-left:.05pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Basic</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:8.0pt'>
 <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=' padding:0in 0in 0in 0in;
 height:8.0pt'>
 <p align=right style='margin-top:0in;margin-right:2.9pt;
 margin-bottom:0in;margin-left:31.45pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.0pt'>
 <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=' padding:0in 0in 0in 0in;
 height:8.0pt'>
 <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;height:8.0pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:8.0pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=6 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:8.0pt'>
 <p align=center style='margin-top:0in;margin-right:2.9pt;
 margin-bottom:0in;margin-left:22.5pt;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0">(Unaudited)</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
 million pesos)</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">Net income </p>
 </td>
 <td   colspan=2 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"><b>16,785</b></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"><b>16,785</b></p>
 </td>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">12,423</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">12,423</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">Dividends on preferred shares</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(756)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(24)</b></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='text-align:right' style="margin-top:0;margin-bottom:0">(765)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(25)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Dividend on
 preferred stock subject to mandatory redemption charged to interest expense
 for the period</p>
 </td>
 <td   colspan=2 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"><b>&#150;</b></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"><b>44</b></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"><b>&nbsp;</b></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"><b>&#150;</b></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">41</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Accretion of
 preferred stock subject to mandatory redemption</p>
 </td>
 <td   colspan=2 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"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.4pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>152</b></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"><b>&nbsp;</b></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"><b>&#150;</b></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">223</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Foreign
 exchange gain on preferred stock subject to mandatory redemption</p>
 </td>
 <td   colspan=2 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"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(474)</b></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"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(32)</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 1.5pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Net income
 applicable to common shares</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;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>16,029</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 0in 0in 0in'>
 <p align=right style='margin-right:4.4pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>16,483</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 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=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;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">11,658</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 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">12,630</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:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <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;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;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;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=' 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   colspan=6 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">(in
 thousands, except per share amounts)</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;text-indent:-9.0pt' 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:2.9pt;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'>
 <p 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'>
 <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;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;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=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Outstanding
 common shares, beginning</p>
 </td>
 <td   colspan=2 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"><b>170,214</b></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"><b>170,214</b></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">169,476</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">169,476</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Effect of
 issuance of common shares during the period</p>
 </td>
 <td   colspan=2 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"><b>318</b></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"><b>318</b></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=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">28</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">28</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' 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 shares under ESOP during the period</p>
 </td>
 <td   colspan=2 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"><b>66</b></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=right style='margin-right:2.9pt;text-align:right' 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:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Common shares
 equivalent of preferred shares deemed dilutive:</p>
 </td>
 <td   colspan=2 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"><b>&nbsp;</b></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"><b>&nbsp;</b></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">&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">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-.4pt' style="margin-top:0;margin-bottom:0">Preferred
 Stock Series A to FF (Note 16)</p>
 </td>
 <td   colspan=2 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"><b>3,218</b></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=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,432</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-.4pt' style="margin-top:0;margin-bottom:0">Global
 Depositary Stock Series III (Note 16)</p>
 </td>
 <td   colspan=2 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"><b>7,908</b></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=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">7,907</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-.4pt' style="margin-top:0;margin-bottom:0">Preferred
 Stock Series VII (Note 17)</p>
 </td>
 <td   colspan=2 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"><b>3,842</b></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=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,842</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 1.5pt;border-right:none;
 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, end</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;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>170,532</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 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>185,566</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 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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;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">169,504</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 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">185,734</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.1pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:11.1pt'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Earnings per
 common share</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;height:11.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Php94.00</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:11.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Php88.83</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:11.1pt'>
 <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 0in 0in 0in;height:11.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php68.78</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:11.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php68.00</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>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><a name="OLE_LINK23"><b>Dividends Declared For the Six Months Ended </b></a><b>June 30, 2005</b></p>

<p style='margin-left:.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:97.78%;margin-left:18.4pt;border-collapse:collapse'>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <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'>
 <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   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-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>Amount</b></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 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'>
 <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'>
 <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>Record</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-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'>
 <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'>
 <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'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 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;
 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;
 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;
 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;
 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;
 height:3.0pt'>
 <p align=center style='margin-bottom:1.0pt;text-align:center' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><b>Preferred Stock Subject to <br>
 Mandatory Redemption</b></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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' 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=' 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=' 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   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Series
 V</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">March 1, 2005</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">March 17, 2005</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">April 15, 2005</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">Php4.675</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;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='text-indent:9.0pt' 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">June 14, 2005</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">June 28, 2005</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">July 15, 2005</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">4.675</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;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='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Series
 VI</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">March 1, 2005</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">March 17, 2005</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">April 15, 2005</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">US$0.09925</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">26</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt' 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">June 14, 2005</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">June 28, 2005</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">July 15, 2005</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">0.09925</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;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='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Series
 VII</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">March 1, 2005</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">March 17, 2005</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">April 15, 2005</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"><a
 name="OLE_LINK27">JPY10.179725</a></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;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='text-indent:9.0pt' 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">June 14, 2005</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">June 28, 2005</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">July 15, 2005</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">10.179725</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">26</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 1.5pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Charged
 to income</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 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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;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">&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 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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;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">&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 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0"><a
 name="OLE_LINK26"></a> 109</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: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'>
 <p 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'>
 <p 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'>
 <p 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'>
 <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'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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=' 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">&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">&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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Series
 DD</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">January 25, 2005</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">February 8, 2005</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">February 28, 2005</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">Php1.00</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Series
 CC</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">January 25, 2005</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">February 24, 2005</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">March 31, 2005</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">1.00</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;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='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Series
 A, I, R, W, AA  &amp; BB</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">June 28, 2005</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">July 28,2005</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">August 31,2005</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">1.00</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">129</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;
 padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt' 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;
 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-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">&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;
 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-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">&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;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0"> 149</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: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'>
 <p 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'>
 <p 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'>
 <p 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'>
 <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'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b>Convertible Preferred
 Stocks</b></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">&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">&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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Series
 III</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">March 1, 2005</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">March 17, 2005</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">April 15, 2005</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">US$1.029412</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">260</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='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;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">June 14, 2005</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">June 28, 2005</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">July 15, 2005</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">1.029412</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:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">267</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='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;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">&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">&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">&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:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0"> 527</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: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'>
 <p 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'>
 <p 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'>
 <p 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'>
 <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'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><b>Cumulative Non-Convertible Redeemable Preferred Stock</b></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">&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">&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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Series
 IV*</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">January 25, 2005</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">February 17, 2005</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">March 15, 2005</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:26.55pt;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;padding:0in 0in 0in 0in'>
 <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;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">May 3, 2005</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">May 26, 2005</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">June 15, 2005</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">&#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:26.55pt;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;padding:0in 0in 0in 0in'>
 <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;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">&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">&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">&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:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">  24</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt' 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=' 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=' 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=' 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=' border:none;padding:0in 0in 0in 0in'>
 <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'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><b>Common stock</b></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">March 1, 2005</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">March 31, 2005</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">May 12, 2005</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">Php14.00</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">2,384</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-left:9.0pt;text-indent:-9.0pt' 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=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:
 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">June 3, 2005</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">July 14, 2005</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">21.00</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:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">3,598</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-left:9.0pt;text-indent:-9.0pt' 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=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">&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">&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">&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:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">5,982</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <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;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;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;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;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;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">6,682</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><i>*    </i><i>Dividends are
declared based on total amounts, not per share amounts.</i></p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Retained
earnings available for cash dividends amounted to Php23,564 million as at June 30, 2005.  Reconciliation of consolidated deficit to Parent Company retained earnings
is shown below:</p>

<p style='margin-left:.25in;text-indent: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:96.86%;margin-left:18.4pt;border-collapse:collapse'>

 <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;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:3.0pt;text-align:justify;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'>
 <p align=center style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;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'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>(in million pesos)</b></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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Deficit
 in the unaudited consolidated financial statements</p>
 </td>
 <td   valign=bottom style=' border:none;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;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:27.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(117)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <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">Adjustments
 relating to:</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:27.05pt;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=' padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">PAS 27 &#150; Consolidated and Separate Financial Statements</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:30.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">23,567</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">PAS 36 &#150; Impairment of Assets</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:27.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2,025)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.45pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p style='margin-left:.25in;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">PAS 40 &#150; Investment Property </p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <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:9.45pt'>
 <p align=right style='margin-right:30.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,139</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.45pt'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Retained earnings in the separate financial statements of the Parent
 Company</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 0in 0in 0in;height:9.45pt'>
 <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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:30.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">23,564</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.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"><a name=cashandcash></a>&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' style="margin-top:0;margin-bottom:0"><b>8.   Property, Plant and Equipment</b></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">This account consists of:</p>

<p style='margin-left:.25in;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:104.02%;margin-left:.9pt;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;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 5.4pt 0in 5.4pt'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Cable and wire
 facilities</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=center style=';text-align:center;
 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 1.5pt;
 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;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Cellular facilities</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=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Buildings</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=center style=';text-align:center;
 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 1.5pt;
 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;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Communications
 satellite</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=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Information
 origination/<br>
 termination equipment</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=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Land and</b></p>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b> land improvements</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=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Property under
 construction</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=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:3.1pt'>
 <td style='border:none;padding:0in 0in 0in 0in'  ><p style="margin-top:0;margin-bottom:0">&nbsp;</td>
 <td   colspan=10 style=' padding:0in 5.4pt 0in 5.4pt;
 height:3.1pt'>
 <p align=center style='margin-top:3.0pt;;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.05pt'>
 <td   colspan=11 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:8.05pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>At </b><b>December 31, 2004</b><b> (Audited)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cost</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">102,958</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">76,117</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">64,092</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">19,083</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">28,474</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">15,709</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">6,108</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">2,563</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">9,972</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">325,076</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:8.1pt;text-indent:-8.1pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Accumulated depreciation, amortization
 and impairment</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">(30,091)</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">(36,126)</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">(31,080)</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">(4,911)</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">(16,859)</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">(8,907)</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">(2,151)</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">(341)</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">(85)</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">(130,551)</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 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net book value</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'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">72,867</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'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">39,991</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'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">33,012</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'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14,172</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'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,615</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'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,802</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'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,957</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'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,222</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'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9,887</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'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">194,525</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=11 valign=bottom 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>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Six Months Ended </b><b>June 30, 2005</b><b>
 (Unaudited)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net book value - beginning</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">72,867</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">39,991</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">33,012</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">14,172</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">11,615</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">6,802</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">3,957</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">2,222</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">9,887</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">194,525</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:8.1pt;text-indent:-8.1pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Additions/Transfers - net</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">1,339</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">601</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">1,756</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">149</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">773</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">573</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">425</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">15</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">1,417</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">7,048</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:8.1pt;text-indent:-8.1pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Disposals/Retirement</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">(69)</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">(4)</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">(149)</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">(16)</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">(84)</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">(54)</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">(11)</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">(7)</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">(144)</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">(538)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:8.1pt;text-indent:-8.1pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Depreciation and amortization</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=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,991)</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=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2,206)</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=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2,860)</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=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,214)</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=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,723)</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=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(437) </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=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(347)</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=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(81)</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=';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 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(10,859)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net book value - end</p>
 </td>
 <td   valign=bottom 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">72,146</p>
 </td>
 <td   valign=bottom 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">38,382</p>
 </td>
 <td   valign=bottom 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">31,759</p>
 </td>
 <td   valign=bottom 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">13,091</p>
 </td>
 <td   valign=bottom 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">10,581</p>
 </td>
 <td   valign=bottom 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">6,884</p>
 </td>
 <td   valign=bottom 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">4,024</p>
 </td>
 <td   valign=bottom 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">2,149</p>
 </td>
 <td   valign=bottom 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">11,160</p>
 </td>
 <td   valign=bottom 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">190,176</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=11 valign=bottom 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>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>At </b><b>June
 30, 2005</b><b> (Unaudited)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cost</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">104,214</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">76,711</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">65,486</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">19,211</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">29,069</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">16,227</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">6,443</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">2,571</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">11,244</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">331,176</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:8.1pt;text-indent:-8.1pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Accumulated depreciation, amortization
 and impairment</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">(32,068)</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">(38,329)</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">(33,727)</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">(6,120)</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">(18,488)</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">(9,343)</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">(2,419)</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">(422)</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">(84)</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">(141,000)</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 1.5pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net book value</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'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">72,146</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'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">38,382</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'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">31,759</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'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13,091</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'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,581</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'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,884</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'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,024</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'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,149</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'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,160</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'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">190,176</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Substantially all our telecommunications equipment are
purchased from outside the Philippines.  Significant source of financing for such purchases
are foreign loans requiring repayment in currencies other than Philippine pesos,
principally in U.S. dollars (see <i>Note 17 &#150; Interest-bearing Financial
Liabilities</i>).  Interest, using an average capitalization rate of 8%, and
net foreign exchange losses capitalized to property, plant and equipment
qualified as borrowing costs for the six months ended <br>
June 30, 2005 and 2004 were as follows:</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:95.92%;margin-left:18.4pt;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:3.0pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 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-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Six Months Ended June 30,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <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;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:27.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2005</b></p>
 </td>
 <td   valign=top style=' border:none;border-top: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">&nbsp;</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:27.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2004</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.1pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=center style='margin-top:0in;margin-right:2.9pt;
 margin-bottom:0in;margin-left:9.05pt;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Unaudited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.95pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:3.95pt'>
 <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;height:3.95pt'>
 <p align=center style='margin-top:0in;margin-right:2.9pt;
 margin-bottom:0in;margin-left:9.05pt;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in million pesos)</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">Interest</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:27.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>203</b></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:27.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">302</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.45pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.45pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Foreign exchange losses (gains)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:.35in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(156)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:27.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">55</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">As at June 30, 2005 and December 31, 2004, the undepreciated capitalized net foreign exchange
losses qualified as borrowing costs amounted to Php5,047 million and Php5,528
million, respectively.</p>

<p style='margin-left:.25in' 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">For the six months ended June 30, 2005, we recognized
additional depreciation of Php578 million with our full adoption of PAS 16, see
<i>Note 2 &#150; Summary of Significant Accounting Policies</i>.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">In
2004, certain assets with net book values aggregating Php365 million were
retired.  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='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Certain
property, plant and equipment have been restated to include the following
amounts for capitalized leases as at June 30, 2005
and December 31, 2004:</p>

<p style='margin-left:.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:96.88%;margin-left:18.4pt;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p style='margin-top:3.0pt;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'>
 <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>June 30, 2005</b><b> (Unaudited)</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'>
 <p align=center style='margin-right:.1pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">December 31, 2004 (Audited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.95pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;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;height:3.95pt'>
 <p align=center style='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;height:3.95pt'>
 <p align=center style='text-align:center;line-height:80%;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Vehicles, furniture and other network 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;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>Total</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:3.95pt'>
 <p align=center style=';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;height:3.95pt'>
 <p align=center style='margin-right:.05pt;text-align:center;
 line-height:80%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Vehicles, furniture and other network
 equipment</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;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">Total</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.95pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:3.95pt'>
 <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;height:3.95pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in million pesos)</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">Cost</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>361</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.25in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,030</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,391</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">361</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">863</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,224</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">Less accumulated depreciation</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:13.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>282</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:.25in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>577</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:13.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b> 859</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:13.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">269</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:13.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">410</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:13.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 679</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;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;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>  79</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.25in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b> 453</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b> 532</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">  92</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 453</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 545</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">The following table describes all changes to the
asset retirement obligations as at June 30, 2005 and December 31, 2004, respectively:</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:96.86%;margin-left:18.4pt;border-collapse:collapse'>
 <tr style='height:11.6pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;height:11.6pt'>
 <p align=right style='margin-top:3.0pt;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:11.6pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>June 30, <br>
 2005</b><b> (Unaudited)</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:11.6pt'>
 <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 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:11.6pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">December 31, 2004<br>
 (Audited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom 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">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:9.05pt;text-align:center' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Asset retirement
 obligations at beginning of period</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"><b>638</b></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">395</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Additional liability
 recognized during the period</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"><b>37</b></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">177</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Settlement of obligations</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(4)</b></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>
 </tr>
 <tr>
 <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">Accretion expense</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:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>38</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:.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;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">66</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Asset retirement
 obligations at end of period (note 18)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b> 709</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;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;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"> 638</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-left:.25in;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="margin-top:0;margin-bottom:0"><b>9.   Investments
in Associates</b></p>

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

<p style='margin-left:.25in;text-align:justify' style="margin-top:0;margin-bottom:0">This account consists of:</p>

<p style='margin-left:.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:96.86%;margin-left:18.4pt;border-collapse:collapse'>
 <tr style='height:11.6pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;height:11.6pt'>
 <p align=right style='margin-top:3.0pt;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:11.6pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>June 30, <br>
 2005</b><b> (Unaudited)</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:11.6pt'>
 <p 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;height:11.6pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">December 31, 2004<br>
 (Audited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom 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">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:9.05pt;text-align:center' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">ACeS International Limited,
 or AIL</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"><b>1,614</b></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">1,614</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Mabuhay Space Holdings
 Limited</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"><b>1,046</b></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">1,077</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Stradcom International
 Holdings, Inc.</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>616</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">616</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Bayantrade Dotcom, Inc.</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>97</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">97</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">ePDS, Inc.</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"><b>6</b></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>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Airborne Access Corporation</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"><b>2</b></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>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-top:
 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-top:
 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>3,381</b></p>
 </td>
 <td   valign=top style=' border:none;border-top: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">&nbsp;</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:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,412</p>
 </td>
 </tr>
 <tr>
 <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">Less accumulated impairment
 and equity in net losses of associates</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>3,369</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">&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">3,404</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Total cost and accumulated
 impairment and equity in net losses of associates</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>  12</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;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;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>
 </tr>
</table></center></div>

<p style='margin-left:.25in' 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"><b><i>Investment of ACeS </i></b><b><i>Philippines</i></b><b><i> in AIL</i></b></p>

<p style='margin-left:.25in;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">As at June 30,
 2005, ACeS Philippines has a 20%
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='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' 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 tangible 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 Internasional 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, see <i>Note 20 &#150; Related Party Transactions</i>.</p>

<p style='margin-left:.25in' 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">AIL has incurred recurring significant operating
losses, negative operating cash flows, and significant levels of debt.  The
financial condition of AIL was partly due to the National Service Providers&#146;,
or NSPs, inability to generate the amount of revenues originally expected as
the growth in subscriber numbers have been significantly lower than budgeted.
These factors raise substantial doubt about AIL&#146;s ability to continue as a
going concern.  On this basis, we recognized an impairment provision in respect
of our investment in AIL amounting to Php1,614
million in 2003.</p>

<p style='margin-left:.25in' 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"><b><i>Investment of Mabuhay Satellite in Mabuhay Satellite
Space Holdings Limited, or MSHL</i></b></p>

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

<p style='margin-left:.25in;punctuation-wrap:simple;text-autospace:
none;vertical-align:baseline' style="margin-top:0;margin-bottom:0">In 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 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='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;punctuation-wrap:simple;text-autospace:
none;vertical-align:baseline' style="margin-top:0;margin-bottom:0">In 2000, SS/L
filed a Notice of Default and Termination against Mabuhay Satellite arising
from the latter&#146;s alleged failure to amicably resolve its 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 US$15 million settlement agreement under
which Mabuhay Satellite leased two transponders under a transponder agreement
on a life-term basis to SS/L and had offset the lease charges due from SS/L and
its receivables from Loral Skynet Network Services, Inc. (formerly known as the
Loral Cyberstar, Inc.), among others, for a full and final settlement of the
arbitration decision.  The agreement was subsequently approved by Mabuhay
Satellite&#146;s creditors in March 2004.</p>

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

<p style='margin-left:.25in;text-indent:0in;punctuation-wrap:
simple;text-autospace:none;vertical-align:baseline' style="margin-top:0;margin-bottom:0">In accordance with the
settlement agreement, Mabuhay Satellite and SS/L shall proceed to dissolve the
joint venture under a separate agreement, for which each of the parties shall
receive title over such number of transponders owned by the joint venture in
proportion to their respective interests.  On the basis of the joint venture
dissolution, we recognized an impairment provision in respect of our investment
in MSHL of Php423 million in 2004.</p>

<p style='margin-left:.25in' 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"><b><i>Investment in Stradcom International Holdings, Inc.,
or SIHI</i></b></p>

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

<p style='margin-left:.25in;text-indent:0in;punctuation-wrap:
simple;text-autospace:none;vertical-align:baseline' style="margin-top:0;margin-bottom:0">ePLDT has 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.  On this basis, we recognized an
impairment provision in respect of our investment in SIHI of Php616 million in
2004.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b><i>Investment
in BayanTrade Dotcom, Inc., or BayanTrade</i></b></p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">BayanTrade
was incorporated and registered with the SEC on August 8, 2000 to provide:  (a)
business-to-business electronic purchasing marketplace to link buyers and
suppliers of good services over the Internet; (b) electronic catalogue
purchasing facilities over the Internet to buyers and suppliers; (c) link-up
with similar horizontal markets and vertical markets across the Asia-Pacific
Region and the world; and (d) such facilitating services incidental to the
business.  BayanTrade is an e-procurement joint venture established together
with six of the Philippines&#146; leading conglomerates.  ePLDT&#146;s 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-left:.25in' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Investment in ePDS, Inc., or ePDs</i></b></p>

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

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">On June 30, 2003, ePLDT signed a Joint Venture Agreement with DataPost
Pte Ltd., or DataPost, a subsidiary of Singapore Post, and G3 Worldwide ASPAC,
or Spring, pursuant to which the parties formed ePDS, a bills printing company
which will do laser printing and enveloping services for statements, bills and
invoices, and other value-added services to companies in the Philippines.
ePLDT has a 50% interest in ePDS, while DataPost has a 30% interest.  Spring,
the largest international mail services provider, owns the remaining 20%.  ePDS
has an initial paid-up capital of Php11 million.</p>

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

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Investment in Airborne Access Corporation, or Airborne
Access</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='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">On August 31, 2003, ePLDT signed a Memorandum of Agreement with Airborne Access to acquire a
20% interest at a purchase price of Php2 million.  Airborne Access, a
pioneering wireless internet service provider, caters primarily to mobile
professionals by delivering wireless internet access to its subsidiaries
through more than 44 hotspots throughout Metro Manila.  In December 2004, ePLDT
has recognized full provision in respect of its investment in Airborne Access
due to its continuous losses which exceeded its paid-up capital.</p>

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

<p style='margin-left:.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%;page-break-after:avoid;border:none;
padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>10. Investment Properties</b></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:96.86%;margin-left:18.4pt;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;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-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:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>June 30, <br>
  2005</b><b> (Unaudited)</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:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' 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'>
 <p align=right style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">December 31, 2004<br>
 (Audited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:13.85pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:13.85pt'>
 <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:13.85pt'>
 <p align=center style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:9.05pt;text-align:center' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Balance at beginning of period</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"><b>743</b></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">761</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Additions (subsequent
 expenditures)</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"><b>&#150;</b></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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Disposal</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(11)</b></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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Net loss from fair value
 adjustment</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"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(21)</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;
 padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;punctuation-wrap:
 hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">Balance at end of period</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;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>732</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;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">&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;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">743</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Investment
properties are stated at fair values, which have been determined based on
latest valuations performed by an independent firm of appraisers.  The
valuation undertaken was based on an open market value, supported by market
evidence in which assets could be exchanged between a knowledgeable willing
buyer and a knowledgeable willing seller in an arm&#146;s-length transaction at the
date of valuation, in accordance with international valuation standards.</p>

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

<p style='margin-left:.25in;text-indent:0in' 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-top:0;margin-bottom:0"><b>11. Goodwill
and Intangible Assets</b></p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">This
account includes intangible assets &#150; technology application arising from the
acquisition of Wolfpac and intangible assets &#150; franchise arising from
acquisition of Meridian.</p>

<p style='margin-left:.25in' 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">Movements in the goodwill and intangible assets during
the periods 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:96.86%;margin-left:18.4pt;border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:13.9pt'>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in;height:13.9pt'>
 <p align=right style='margin-top:3.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</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;height:13.9pt'>
 <p align=center style='margin-top:3.0pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>June 30, 2005</b><b> (Unaudited)</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;height:13.9pt'>
 <p align=center style='margin-top:3.0pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">December 31, 2004 (Audited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-top:3.0pt;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:9.35pt'>
 <p align=center style='margin-top:3.0pt;margin-right:.05pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Goodwill</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:9.35pt'>
 <p align=center style='margin-top:3.0pt;margin-right:.05pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Intangible assets</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=center style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Total</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=center style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Goodwill</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=center style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Intangible assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=center style='margin-top:3.0pt;margin-right:.05pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=6 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=center style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in million pesos)</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 align=left style='text-align:left' style="margin-top:0;margin-bottom:0">Cost:</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.0pt'>
 <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=' padding:0in 0in 0in 0in;
 height:4.0pt'>
 <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=' padding:0in 0in 0in 0in;
 height:4.0pt'>
 <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=' padding:0in 0in 0in 0in;
 height:4.0pt'>
 <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=' padding:0in 0in 0in 0in;
 height:4.0pt'>
 <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=' padding:0in 0in 0in 0in;
 height:4.0pt'>
 <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:9.45pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p align=left style='margin-left:9.0pt;text-align:left' style="margin-top:0;margin-bottom:0">Balance at beginning of period</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>528</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>3,955</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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"><b>4,483</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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">498</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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">317</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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"> 815</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=left style='margin-left:9.0pt;text-align:left' style="margin-top:0;margin-bottom:0">Additions</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;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;padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>15</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;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"><b>  15</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;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">30</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;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">3,638</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;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">3,668</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.6pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=left style='text-align:left' style="margin-top:0;margin-bottom:0">Balance at end of period</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b> 528</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>3,970</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4,498</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 528</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,955</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,483</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.5pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p align=left style='text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;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"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;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"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;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"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;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;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;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>
 </tr>
 <tr style='page-break-inside:avoid;height:5.85pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:5.85pt'>
 <p align=left style='text-align:left' style="margin-top:0;margin-bottom:0">Accumulated amortization and impairment:</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:5.85pt'>
 <p align=right style='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;
 height:5.85pt'>
 <p align=right style='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;
 height:5.85pt'>
 <p align=right style='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;
 height:5.85pt'>
 <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;
 height:5.85pt'>
 <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;
 height:5.85pt'>
 <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:9.45pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p align=left style='margin-left:9.0pt;text-align:left' style="margin-top:0;margin-bottom:0">Balance at beginning of period</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(438)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(181)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(619)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(438)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <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=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(443)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p align=left style='margin-left:9.0pt;text-align:left' style="margin-top:0;margin-bottom:0">Additions</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(152)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(152)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p align=right style='margin-right:.05in;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:9.0pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(176)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(176)</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:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=left style='text-align:left' style="margin-top:0;margin-bottom:0">Balance at end of period</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:7.6pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(438)</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:7.6pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(333)</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:7.6pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(771)</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:7.6pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(438)</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:7.6pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(181)</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:7.6pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(619)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.25pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:6.25pt'>
 <p align=left style='text-align:left' style="margin-top:0;margin-bottom:0">Net balance</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:6.25pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>  90</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:6.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>3,637</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:6.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>3,727</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:6.25pt'>
 <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>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:6.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,774</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:6.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,864</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.25in' 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">&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' style="margin-top:0;margin-bottom:0"><b>12. Notes Receivable</b></p>

<p style='margin-top:0in;margin-right:1.8pt;margin-bottom:0in;
margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='margin-top:0in;margin-right:1.8pt;margin-bottom:0in;
margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Investment of ePLDT in Debt Securities of Technology
Support Services, Inc., or TSSI (formerly First Advance Multi-Media
Entertainment Corp., or FAME)</i></b></p>

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

<p style='margin-left:.25in;text-indent:0in;punctuation-wrap:
simple;text-autospace:none;vertical-align:baseline' style="margin-top:0;margin-bottom:0">On June 1, 2004, ePLDT and TSSI entered an agreement whereby ePLDT would grant a seven-year
non-interest bearing loan to TSSI amounting to US$3.1 million.  At the option
of ePLDT, the loan is convertible into 20% of the total outstanding capital
stock of TSSI at any time during the life of the outstanding loan.  </p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">On August 20, 2004, FAME
changed its corporate name into TSSI.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">On September 14, 2004, ePLDT entered into a second agreement with TSSI whereby ePLDT would
grant another seven-year non-interest bearing loan to TSSI amounting 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 was released to TSSI in February 2005.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">ePLDT has
not yet converted its investment in debt securities to TSSI&#146;s shares of stock
as at June 30, 2005.  TSSI is a systems integrator for the internet and mobile
telephone gaming project.</p>

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

<p style='margin-left:.25in' 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 June 30, 2005.</p>

<p style='margin-left:.25in' 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">&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' style="margin-top:0;margin-bottom:0"><b>13. Cash and Cash Equivalents</b></p>

<p style='margin-left:.25in;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">This account consists of:</p>

<p style='margin-left:.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:96.86%;margin-left:18.4pt;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;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-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:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>June 30, <br>
 2005</b><b> (Unaudited)</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:2.9pt;
 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=' 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:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">December 31, 2004<br>
 (Audited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:13.85pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:13.85pt'>
 <p style='text-align:justify;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;height:13.85pt'>
 <p align=center style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:9.05pt;text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <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">Cash on
 hand and in banks</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"><b>2,241</b></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">4,750</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='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;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>33,388</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">&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">22,571</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;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;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>35,629</b></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: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'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">27,321</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Cash in
banks earns interest at prevailing bank deposit rates.  Temporary investments
are made for varying periods of up to two months depending on our immediate
cash requirements, and earn interest at the prevailing short-term deposit
rates.  Due to the short-term nature of such transactions, the carrying value
approximates the fair value of our temporary investments.</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%;page-break-after:avoid;border:none;
padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>14. Trade and Other Receivables</b></p>

<p style='margin-left:.25in;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">This account consists of receivables from:</p>

<p style='margin-left:.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:96.86%;margin-left:18.4pt;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <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">&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:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>June 30, <br>
 2005</b><b> (Unaudited)</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:2.9pt;
 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=' 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:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">December 31, 2004<br>
 (Audited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-top: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   colspan=3 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:9.05pt;text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in million pesos)</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">Customers and carriers</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"><b>26,729</b></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">27,280</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">Others (Notes 20, 22 and 23) </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>1,290</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">&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">1,192</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   valign=bottom style=' border: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>28,019</b></p>
 </td>
 <td   valign=bottom style=' border: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">&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;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">28,472</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">Less allowance for doubtful accounts</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>19,562</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">&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">18,068</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;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;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>8,457</b></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: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'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,404</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-left:.25in;text-indent:0in' 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='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:0in' 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, of which, US$23 million remains outstanding as at June 30,
2005, and (2) to service, administer and collect the receivables on behalf of
the Purchaser.  Under the RPD, the Purchaser has no recourse against PLDT
should an 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='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Sale of
receivables under the RPD amounted to US$6 million (Php338 million) and US$5
million (Php297 million) for the six months ended June 30, 2005 and 2004, respectively.  Loss on sale of receivables under the RPD amounted to US$0.67 million
(Php38 million) and US$0.65 million (Php37 million) for the six months ended June 30, 2005 and 2004, respectively.</p>

<p style='margin-left:.25in;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">&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-top:0;margin-bottom:0"><b>15. Inventories
and Supplies</b></p>

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

<p style='margin-left:.25in;text-align:justify' style="margin-top:0;margin-bottom:0">This account consists of:</p>

<p style='margin-left:.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:96.88%;margin-left:18.3pt;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;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-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:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>June 30, <br>
 2005</b><b> (Unaudited)</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:2.9pt;text-align:right' 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'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">December 31, 2004<br>
 (Audited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <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'>
 <p align=center style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:9.05pt;text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Terminal and cellular phone
 units:</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"><b>&nbsp;</b></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=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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.1pt;text-align:justify' style="margin-top:0;margin-bottom:0">At net
 realizable value</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"><b>665</b></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">1,357</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.1pt;text-align:justify' style="margin-top:0;margin-bottom:0">At cost</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"><b>1,183</b></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">1,895</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Spare parts and supplies:</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"><b>&nbsp;</b></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">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.1pt;text-align:justify' style="margin-top:0;margin-bottom:0">At net
 realizable value</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"><b>443</b></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">389</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.1pt;text-align:justify' style="margin-top:0;margin-bottom:0">At cost</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"><b>1,034</b></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">985</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='text-align:justify' style="margin-top:0;margin-bottom:0">Others (At cost)</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>1,147</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">&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">394</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;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:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,255</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;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;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,140</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-left:.25in;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='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><b>16. Equity</b></p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">The
movement of PLDT&#146;s capital account follows:</p>

<p style='margin-left:.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:94.62%;margin-left:23.4pt;border-collapse:collapse'>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-top:
 double windowtext 1.5pt;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=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'>
 <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'>
 <p align=center style='text-align:center' 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 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:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Series <br>
 A to FF</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top: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"><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'>
 <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'>
 <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'>
 <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'>
 <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;
 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"><b>Common Stock</b>
 &#150;Php5 par value</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <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' 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 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <p align=right style='text-align:right' 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'>
 <p align=right style='text-align:right' 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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>Amount</b></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"><b>&nbsp;</b></p>
 </td>
 <td   colspan=8 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 million shares
 and pesos)</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 style="margin-top:0;margin-bottom:0"><b>Authorized</b></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='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 5.4pt 0in 5.4pt'>
 <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;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=' 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">823</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='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;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='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;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php1,170</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"><b>Outstanding</b></p>
 </td>
 <td   valign=bottom style=' border:none;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=' border:none;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=bottom style=' border:none;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=' border:none;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=' border:none;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   colspan=2 valign=bottom style=' border:none;
 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=bottom style=' border:none;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=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:4.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Balance at January 1, 2004</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">410</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' 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='text-align:right' style="margin-top:0;margin-bottom:0">36</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"> 451</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php4,505</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">169</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php847</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.05in' style="margin-top:0;margin-bottom:0">Issuance</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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'>
 <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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">9</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">2</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 style='margin-left:.05in' style="margin-top:0;margin-bottom:0">Conversion</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=';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;padding:0in 5.4pt 0in 5.4pt'>
 <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;padding:0in 5.4pt 0in 5.4pt'>
 <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;padding:0in 5.4pt 0in 5.4pt'>
 <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;padding:0in 5.4pt 0in 5.4pt'>
 <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;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='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;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='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:
 double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:4.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Balance at December 31, 2004 (Audited)</p>
 </td>
 <td   valign=bottom 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"> 409</p>
 </td>
 <td   valign=bottom 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">   5</p>
 </td>
 <td   valign=bottom 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">  36</p>
 </td>
 <td   valign=bottom 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"> 450</p>
 </td>
 <td   valign=bottom 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">Php4,497</p>
 </td>
 <td   colspan=2 valign=bottom 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"> 170</p>
 </td>
 <td   valign=bottom 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">Php851</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: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'>
 <p align=right style=';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'>
 <p align=right style='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'>
 <p align=right style='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'>
 <p align=right style='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'>
 <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 5.4pt 0in 5.4pt'>
 <p align=right style='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'>
 <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=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:4.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Balance at January 1, 2005</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"> 409</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' 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='text-align:right' style="margin-top:0;margin-bottom:0">  36</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"> 450</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php4,497</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"> 170</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php851</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:4.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Issuance</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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'>
 <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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <p align=right style='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;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:4.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Conversion</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=';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;padding:0in 5.4pt 0in 5.4pt'>
 <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;padding:0in 5.4pt 0in 5.4pt'>
 <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;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';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;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">(11)</p>
 </td>
 <td   colspan=2 valign=bottom 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">1</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='text-align:right' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:4.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Balance at June 30, 20 05 (Unaudited)</p>
 </td>
 <td   valign=bottom 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"> 408</p>
 </td>
 <td   valign=bottom 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">   5</p>
 </td>
 <td   valign=bottom 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">  36</p>
 </td>
 <td   valign=bottom 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"> 449</p>
 </td>
 <td   valign=bottom 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">Php4,487</p>
 </td>
 <td   colspan=2 valign=bottom 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"> 171</p>
 </td>
 <td   valign=bottom 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">Php857</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>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Preferred Stock</i></b></p>

<p style='margin-left:.25in;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">The preferred stock is non-voting, except as
specifically provided by law, and is preferred as to liquidation.</p>

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

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

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

<p style='margin-left:.25in' 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 it sole
discretion, shall deem appropriate.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">At
PLDT&#146;s option, the Series A to FF 10% Cumulative Convertible Preferred Stock
are redeemable at par value plus accrued dividends five years after the year of
issuance.</p>

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

<p style='margin-left:.25in' 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, wich is an exempt transaction under Section 10.2 of the SRC as confirmed
by SEC on March 22, 2004.</p>

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

<p style='margin-left:.25in' 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 SEC.</p>

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

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

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

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

<p style='margin-left:.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="margin-top:0;margin-bottom:0"><b>17. Interest-bearing
Financial Liabilities</b></p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">This
account consists of the following:</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:96.86%;margin-left:18.4pt;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 0in 0in 0in'>
 <p style='margin-top:3.0pt' 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'>
 <p align=right style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>June 30, <br>
 2005</b><b> (Unaudited)</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:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' 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'>
 <p align=right style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">December 31, 2004<br>
 (Audited)</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-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:9.05pt;text-align:center' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>

 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><b>Long-term portion of interest-bearing financial
 liabilities - net of current portion:</b></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"><b>&nbsp;</b></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=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>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Long-term
 debt</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"><b>102,675</b></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">121,012</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Obligations
 under capital lease (Note 8)</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"><b>516</b></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">601</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Preferred
 stock subject to mandatory redemption</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"><b>13,611</b></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">14,375</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;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 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>116,802</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 0in 0in 0in'>
 <p align=right style='margin-right:4.45pt;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 0in 0in 0in'>
 <p align=right style='margin-right:4.45pt;text-align:right' style="margin-top:0;margin-bottom:0">135,988</p>
 </td>
 </tr>
 <tr>
 <td   valign=top 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=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'>
 <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">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><b>Current portion of interest-bearing financial
 liabilities:</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Long-term
 debt maturing within one year</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"><b>28,880</b></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">28,018</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Obligations
 under capital lease maturing within one year (Note 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"><b>527</b></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">425</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Notes
 payable</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"><b>56</b></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">58</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <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 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>29,463</b></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 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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;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">28,501</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Unamortized
debt discount, representing debt issuance costs and any difference between the
fair value of consideration given or received on initial recognition, included
in following financial liabilities are as follows:</p>

<p style='margin-left:.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:96.86%;margin-left:18.4pt;border-collapse:collapse'>

 <tr>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in'>
 <p style='margin: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>
 </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:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>June 30, <br>
 2005</b><b> (Unaudited)</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:2.9pt;
 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=' 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:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">December 31, 2004<br>
 (Audited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.0pt'>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;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;height:8.0pt'>
 <p align=center style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:9.05pt;text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>

 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;page-break-after:
 avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">Long-term debt</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"><b>9,913</b></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">10,440</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">Obligations under capital
 lease (Note 8)</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"><b>699</b></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:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">741</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">Preferred stock subject to
 mandatory redemption</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>4,758</b></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: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">6,182</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total
 unamortized debt discount</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;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>15,370</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 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:
 double windowtext 1.5pt;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">17,363</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">The following table describes all changes to
unamortized debt discount as at June 30, 2005 and December 31, 2004.</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:96.86%;margin-left:18.4pt;border-collapse:collapse'>

 <tr>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in'>
 <p style='margin: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>
 </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'>
 <p align=right style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>June 30, <br>
 2005</b><b> (Unaudited)</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:2.9pt;
 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:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">December 31, 2004<br>
 (Audited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.0pt'>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:8.0pt'>
 <p style='margin: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>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 padding:0in 0in 0in 0in;height:8.0pt'>
 <p align=center style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:9.05pt;text-align:center' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>

 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Unamortized debt discount at
 beginning of period</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"><b>17,363</b></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">16,390</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Additions during the period</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"><b>157</b></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">7,765</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Accretion during the period charged to financing costs
 (Note 5)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(1,430)</b></p>
 </td>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(3,452)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Revaluations</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"><b>473</b></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">474</p>
 </td>
 </tr>
 <tr>
 <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">Settlement and conversions during the period</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(1,193)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;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:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(3,814)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Unamortized debt discount at end of period</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>15,370</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;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;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">17,363</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b>Long-term
Debt</b></p>

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

<p style="margin-top:0;margin-bottom:0">Long-term debt consists of:</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:96.86%;margin-left:18.4pt;border-collapse:collapse'>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in'>
 <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:none;
 border-top:solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>June 30, 2005</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-top:solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0">December 31, 2004</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 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:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <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:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>(Unaudited)</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0">(Audited)</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-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in'>
 <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'>
 <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='text-align:justify' style="margin-top:0;margin-bottom:0"><i>U.S.
 Dollar Debt:</i></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p 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 0in 0in 0in'>
 <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=' 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=' 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=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"><b>&nbsp;</b></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"><b>&nbsp;</b></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"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <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=' padding:0in 0in 0in 0in'>
 <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=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>US$306</b></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"><b>Php17,201</b></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">US$351</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php19,793</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Finnish
 Export Credit or Finnvera</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">6.36%
 - 7.75% and US$ LIBOR + 0.5% - 1.425%</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"><b>136</b></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"><b>7,657</b></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">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">8,964</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <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=' padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">US$
 LIBOR +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"><b>61</b></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"><b>3,445</b></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">74</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">4,179</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Japan Bank for International Cooperation, <br>
 or JBIC/Co-financing Banks</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <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=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>29</b></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"><b>1,627</b></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">44</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">2,459</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <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;padding:0in 0in 0in 0in'>
 <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;
 padding:0in 0in 0in 0in'>
 <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=' 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>2,872</b></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:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">104</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:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">5,871</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;text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;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=' 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"><b> 583</b></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"><b>32,802</b></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">732</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">41,266</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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=' padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">7.85%
 - 11.375%</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"><b>1,176</b></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"><b>66,043</b></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">1,220</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">68,795</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-align:justify' style="margin-top:0;margin-bottom:0">Term Loans:</p>
 </td>
 <td   valign=top 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"><b>&nbsp;</b></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"><b>&nbsp;</b></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">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Debt
 Exchange Facility</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <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=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>160</b></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"><b>8,976</b></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">155</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">8,721</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">GSM
 Network Expansion Facilities</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">4.49%
 and US$ LIBOR + 1%-3.25%</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"><b>110</b></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"><b>6,195</b></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">125</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">7,046</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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=' padding:0in 0in 0in 0in'>
 <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=' 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=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"><b>&nbsp;</b></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">51</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">2,862</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <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=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>23</b></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"><b>1,295</b></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">33</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">1,863</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-align:justify' style="margin-top:0;margin-bottom:0">Restructured Loans</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">US$
 LIBOR + 1%</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"><b>88</b></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"><b>4,917</b></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">85</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">4,815</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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=' padding:0in 0in 0in 0in'>
 <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=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>65</b></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"><b>3,635</b></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">72</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">4,064</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;
 padding:0in 0in 0in 0in'>
 <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:solid windowtext 1.0pt;border-right:none;
 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=' 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>US$</b><b>2,205</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>123,863</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">US$2,473</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">139,432</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>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;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=' 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"><b>&nbsp;</b></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"><b>&nbsp;</b></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=' 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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0"><i>Japanese
 Yen Debt:</i></p>
 </td>
 <td   valign=top 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"><b>&nbsp;</b></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"><b>&nbsp;</b></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">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <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=' padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">2.125%</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"><b>JP&yen;</b><b>8,364</b></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"><b>4,238</b></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">JP&yen;9,760</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">5,363</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Export Credit Agency-Supported Loan &#150; <br>
 NEXI Supported Loan</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">JP&yen;
 LIBOR + 1.70%</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"><b>1,887</b></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"><b>956</b></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">2,205</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">1,212</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <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 style='text-align:justify' 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 style='margin-right:2.9pt' 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;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>JP&yen;</b><b>10,251</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>5,194</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">JP&yen;11,965</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">6,575</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 <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'>
 <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'>
 <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'>
 <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'>
 <p 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'>
 <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=top style=' padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0"><i>Philippine
 Peso Debt:</i></p>
 </td>
 <td   valign=top 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"><b>&nbsp;</b></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"><b>&nbsp;</b></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">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <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=' padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">14%
 - 15.816%</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"><b>&#150;</b></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"><b>1,575</b></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">1,675</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-align:justify' style="margin-top:0;margin-bottom:0">Term Loans:</p>
 </td>
 <td   valign=top 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"><b>&nbsp;</b></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"><b>&nbsp;</b></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">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <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=' padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">11.18%</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"><b>&#150;</b></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"><b>340</b></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">680</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <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=' padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">11%
 - 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"><b>&#150;</b></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"><b>212</b></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">&#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">305</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-align:justify' style="margin-top:0;margin-bottom:0">Restructured Loans</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">91-day
 T-Bill + 1%</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"><b>&#150;</b></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"><b>371</b></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">363</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <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 style='text-align:justify' 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 0in 0in 0in'>
 <p style='margin-right:2.9pt' 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;
 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-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>2,498</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">&#150;</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">3,023</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;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=' 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"><b>&nbsp;</b></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"><b>131,555</b></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=' 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">149,030</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <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;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=' 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>&nbsp;</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"><b>281,880</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">&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">28,018</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;punctuation-wrap:
 hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">Total long-term debt </p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;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=' border:none;border-bottom:
 double windowtext 1.5pt;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;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Php102,675</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;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;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php121,012</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><i>Note:
Amounts presented are net of unamortized debt discount and debt issuance costs.</i></p>

<p style='margin-left:.25in' 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">The scheduled maturities of our outstanding unaudited
consolidated long-term debt at nominal values as at June 30, 2005 are as follows:</p>

<p style='margin-left:.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:95.92%;margin-left:18.4pt;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-top:3.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></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'>
 <p align=center style='margin-top:3.0pt;margin-right:2.85pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>U.S. Dollar Loans</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'>
 <p align=center style='margin-top:3.0pt;margin-right:2.85pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>JP</b><b>Y
 Loans</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'>
 <p align=center style='margin-top:3.0pt;margin-right:2.85pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Php Loans</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'>
 <p align=center style='margin-top:3.0pt;margin-right:2.85pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' 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:3.0pt;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='margin-top:3.0pt;text-align:center;
 page-break-after:avoid' 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-top:3.0pt;margin-right:2.85pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' 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-top:3.0pt;margin-right:2.85pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' 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-top:3.0pt;margin-right:2.85pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' 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-top:3.0pt;margin-right:2.85pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' 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-top:3.0pt;margin-right:2.85pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' 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:3.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=6 valign=top style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:3.0pt;margin-right:2.85pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;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=' 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=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.55pt;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:22.55pt;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:22.55pt;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:22.55pt;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:22.55pt;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:22.55pt;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='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2005(1)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">238</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:14.85pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13,389</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:14.85pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,709</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:14.85pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">866</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:14.85pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">368</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14,623</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">2006</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">337</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:14.85pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">18,947</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:14.85pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,418</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:14.85pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,732</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:14.85pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">847</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">21,526</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">2007</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">443</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:14.85pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">24,882</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:14.85pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,418</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:14.85pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,732</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:14.85pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">73</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">26,687</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">2008</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">118</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:14.85pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,630</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:14.85pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,709</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:14.85pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">866</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:14.85pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">61</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,557</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">2009</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">271</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:14.85pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">15,219</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:14.85pt;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:14.85pt;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:14.85pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">52</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">15,271</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">2010 and onwards</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:22.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">972</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:14.85pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">54,590</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:14.85pt;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:14.85pt;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:14.85pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,214</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:13.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">55,804</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><i>(1)  </i><i>July 1, 2005</i><i> through </i><i>December 31, 2005</i><i>.</i></p>

<p style='margin-left:.25in' 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"><b><i>U.S. Dollar Debt:</i></b></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:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i><u>Export Credit Agencies-Supported Loans</u></i></p>

<p style='margin-left:.25in;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">In order to obtain imported components for our network
infrastructure in connection with our expansion and service improvement
programs, we obtained loans extended and/or guaranteed by various export credit
agencies.  These financings account for a significant portion of our
indebtedness.</p>

<p style='margin-left:.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>Kreditanstalt f&#252;r Wiederaufbau, or KfW</i></p>

<p style='margin-left:.5in;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">KfW, a German state-owned development bank, is PLDT&#146;s
largest single creditor.  As at June 30,
 2005, we owed US$306 million
aggregate principal amount of debt to KfW, as follows:</p>

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

<ul style='margin-top:0in' type=disc>
 <li>US$227 million
 provided under various export credit agency-backed facilities, of which
 US$117 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</li>
</ul>

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

<ul style='margin-top:0in' type=disc>
 <li style='page-break-after:avoid'>US$79 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.</li>
</ul>

<p style='margin-left:.25in;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">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 have
drawn US$140 million (Php7,862 million) under this facility as at June 30, 2005.  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='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Of
the amounts outstanding under these KfW loans, US$38 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:.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>Finnish</i><i>
Export Credit, plc, or Finnvera</i></p>

<p style='margin-left:.25in;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">As at June 30,
 2005, US$139 million aggregate principal
amount of Smart&#146;s debts were provided by various banks under export credit
agency-backed facilities in connection with Smart&#146;s GSM expansion programs.
These facilities are covered by guarantees from Finnvera, the Finnish export
credit agency, for 95% of political risk and 50% of commercial risk for GSM
Phase 1 to 4 loan facilities and 100% of political and commercial risk for the
refinancing facility of GSM Phase 5A and 5B.  The US$100 million refinancing
facility was obtained on February 11, 2005 in relation to Smart&#146;s GSM Phase 5A
and 5B loans which were prepaid last March 1, 2005 with outstanding balances of
US$60
million and US$41 million, respectively, at the time of prepayment.
This refinancing facility is payable semi-annually over five years starting
September 1, 2005 with final repayment due in March 2010.  The principal
benefit of refinancing the Phase 5 loan was the savings from a lower interest
margin on the refinancing facility.</p>

<p style='margin-left:.25in;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">Of the amounts outstanding under these Finnvera
guaranteed loans, US$32 million will mature in 2005, US$37 million in
2006, US$20 million in 2007, US$20 million in 2008, US$20 million in 2009 and US$10 million in
2010.  Principal amortization on these loans are generally payable in equal
semi-annual installments.</p>

<p style='margin-left:.25in;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>Nippon</i><i>
Export and </i><i>Investment</i><i> Insurance of </i><i>Japan</i><i>, or NEXI</i></p>

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

<p style='margin-left:.25in' 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.  Outstanding
balance as at June 30, 2005 is US$63 million.</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>Japan
Bank for International Cooperation, or JBIC/Co-financing Banks</i></p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">As
at June 30, 2005, PLDT owed US$29 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$5 million will mature in 2005, US$10 million in
2006, US$8 million in 2007, US$3 million in 2008 and US$3 million in 2009.</p>

<p style='margin-left:.25in;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>Other Export Credit Agency Supported Loans</i></p>

<p style='margin-left:.25in;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">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, Canada, Australia and Singapore, in
the aggregate outstanding principal amount of US$45 million as at June 30, 2005.
Smart, likewise, obtained loans guaranteed by export credit agencies of Norway and Italy
amounting to US$6 million.  Of the amounts outstanding under these
loans, US$12 million will mature in 2005, US$19 million in
2006, US$13 million in 2007, US$4 million in 2008, US$2 million in 2009 and US$1 million in
2010.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><i><u>Fixed
Rate Notes</u></i></p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">PLDT
has the following non-amortizing fixed rate notes outstanding as at June 30, 2005 and December 31, 2004:</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:96.86%;margin-left:18.4pt;border-collapse:collapse'>

 <tr style='page-break-inside:avoid;height:6.6pt'>
 <td   colspan=2 valign=bottom style=' border:none;
 border-top:solid windowtext 1.5pt;padding:0in 0in 0in 0in;height:6.6pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Principal<br>
 Amount</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;height:6.6pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Interest<br>
 Rate</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;height:6.6pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Maturity<br>
 Date</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-top:solid windowtext 1.5pt;padding:0in 0in 0in 0in;height:6.6pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>June 30, 2005</b><b> <br>
 (Unaudited)</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-top:solid windowtext 1.5pt;padding:0in 0in 0in 0in;height:6.6pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">December 31, 2004 <br>
 (Audited) </p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;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=2 valign=bottom 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=bottom 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   colspan=4 valign=bottom 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">(in millions)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <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">US$300,000,000</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:10.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8.350%</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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=' 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>US$296</b></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"><b>Php16,616</b></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">US$296</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">Php16,658</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <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">US$250,000,000</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:10.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11.375%</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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=' 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>243</b></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"><b>13,640</b></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">242</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">13,661</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <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">US$161,799,000</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:10.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7.850%</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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=' 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>161</b></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"><b>9,057</b></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">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">10,315</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <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">US$175,000,000</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:10.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10.500%</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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=' 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>174</b></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"><b>9,756</b></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">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">9,777</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <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">US$119,389,000</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:10.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9.250%</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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=' 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>119</b></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"><b>6,691</b></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">129</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">7,289</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <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">US$110,557,000</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:10.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9.875%</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:9.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">August 1, 2005</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>111</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>6,210</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">110</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,223</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$
 73,766,000</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:10.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10.625%</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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=' 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>72</b></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"><b>4,073</b></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">86</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">4,872</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 1.5pt;border-right:none;
 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   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 0in 0in 0in'>
 <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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;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>US$</b><b>1,176</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 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>Php66,043</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 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">US$1,220</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 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">Php68,795</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>
 </tr>
</table></center></div>

<p style='margin-left:.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><u>Term</u></i><i><u> Loans</u></i></p>

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

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>US$283
Million </i><i>Term</i><i> Loan Facility, or Debt Exchange Facility</i></p>

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

<p style='margin-left:.25in;text-indent:0in' 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 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, at fair value of Php8,390 million,
net of debt discount amounting to Php7,464 million.  As at June 30, 2005, unamortized discount amounted to Php85 million.</p>

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

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

<p style='margin-left:.5in;text-indent:-.25in;page-break-after:
avoid' 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:.5in;text-indent:-.25in;page-break-after:
avoid' 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:.5in;text-indent:-.25in;page-break-after:
avoid' 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:.25in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.25in;text-indent:0in' 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='margin-left:.25in' 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>GSM </i><i>Network
Expansion Facilities</i></p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">On September 13, 2004, Smart signed a US$104 million 5-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$94 million remained outstanding as at June 30, 2005.  The loan is payable over five years in ten equal payments starting May 2005 with final
repayment in November 2009.  </p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">On June 8,
2001, Smart signed its GSM Phase 5A financing comprised of US$195 million
loans, of which US$30 million is owed to Nordic Investment Bank, or NIB, US$15
million to Nederlandse Financierings-Maatschappij Voor Ontwikkelingslanden
N.V., or FMO, of the Netherlands and US$150 million to Finnvera.  Of the
amounts owed to FMO and NIB, US$18 million remained outstanding as at June 30, 2005 with final repayments due in March 2007 and June 2007.  </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>Local </i><i>Exchange
Transfer Loans</i></p>

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

<p style='margin-left:.25in' 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.  The FMO loan with original final maturity of September 1, 2007 was
prepaid in full on March 1, 2005.  The ECGD and EKN loans, both with original final
maturity on December 31, 2007, were prepaid in full effective June 30, 2005.</p>

<p style='margin-left:.25in' 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><u>Restructured Loans</u></i></p>

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

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">As
a result of the restructuring:</p>

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

<ol style='margin-top:0in' start=1 type=a>
 <li>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 (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.</li>
</ol>

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

<ol style='margin-top:0in' start=2 type=a>
 <li>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.</li>
</ol>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">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 in new debt of Smart and US$1.5 million in cash.
A gain on debt exchange transaction amounting to Php4,419 million was recognized
in our consolidated statement of income representing the difference between the
fair value of Piltel&#146;s debt cancelled and/or exchanged amounting to Php12,893
million (net of debt discount of Php3,359 million) and Smart&#146;s consideration
for the debt exchange including cash of Php84 million (US$1.5 million) and fair
value of newly issued debt amounting to Php8,390 million (net of debt discount
of Php7,464 million).  This portion of Piltel&#146;s debt has been eliminated in
consolidation as at June 30, 2005.</p>

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

<p style="margin-top:0;margin-bottom:0">Piltel&#146;s residual long-term debt to third parties
consists of:</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:96.86%;margin-left:18.4pt;border-collapse:collapse'>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <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:none;
 border-top:solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>June 30, 2005</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-top:solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0">December 31, 2004</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 align=center style='margin-top:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Description</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>(Unaudited)</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0">(Audited)
 </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"><b>&nbsp;</b></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=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b>Restructured debts</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"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' 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=' 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=' 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=' 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='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='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-left:18.4pt' style="margin-top:0;margin-bottom:0">10 year Tranche 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"><b>Php</b><b>186</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">Php182</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' 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=' 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>185</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">181</p>
 </td>
 </tr>
 <tr>
 <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 style='margin-left:9.0pt' 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;
 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-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:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>371</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:.05in;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:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">363</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;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;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;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;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;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=' 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=' 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>7</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>414</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">US$7</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">406</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>7</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>408</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">7</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">400</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;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;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>74</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:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>4,095</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:.05in;text-align:right' style="margin-top:0;margin-bottom:0">71</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:.05in;text-align:right' style="margin-top:0;margin-bottom:0">4,009</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;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;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>88 </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:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>4,917</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:.05in;text-align:right' style="margin-top:0;margin-bottom:0">US$85 </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:.05in;text-align:right' style="margin-top:0;margin-bottom:0">4,815</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;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;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;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>5,288</b></p>
 </td>
 <td   valign=bottom style=' border:none;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;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">5,178</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b>Unrestructured debt</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"><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=' 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=' 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=' 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=' 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>1</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>52</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">US$1</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">52</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;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;border-top:
 solid windowtext 1.0pt;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-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>5,340</b></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:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</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:.05in;text-align:right' style="margin-top:0;margin-bottom:0">5,230</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;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;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;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>75</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:.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;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">59</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;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;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;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>Php</b><b>5,265</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;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;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php5,171</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in' 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='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=1 cellspacing=0 cellpadding=0
 style='width:95.26%;margin-left:23.4pt;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="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="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="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="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="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="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=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">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="margin-top:0;margin-bottom:0">Interest rate</p>
 <p 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; Philippine 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="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='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:0in' 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 June 30, 2005 and December 31, 2004, the remaining undrawn
balance available under the PLDT LOS is US$50 million, approximately Php2,823
million and Php2,831 million, respectively, due to prior investments made from
March 23, 2000 to December 31, 2002 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.</p>

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

<p style='margin-left:.25in' 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-left:.25in' 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>Satellite</i><i>
Acquisition Loans</i></p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Mabuhay
Satellite has an existing Credit Agreement with the Export-Import Bank of the United
 States, or Ex-Im Bank, to finance a portion of the cost of purchasing the
Agila II Satellite.  In 2003, Ex-Im 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&#189; years to July 15, 2007 and reducing the interest rate by 1% to 5.6%.  The revised repayment terms have been
approved by the majority of the local creditor banks.</p>

<p style='margin-left:.25in' 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">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$39 million (Php2,171 million) in favor of U.S. Ex-Im
Bank, as security under the Credit Agreement and a term loan to Mabuhay
Satellite in the aggregate amount of US$26 million (Php1,465 million), which
will mature on various dates from 2005 to 2007. </p>

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

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

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Japanese Yen Debt:</i></b></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>JBIC JP&yen;9,760 Million Overseas </i><i>Investment</i><i>
Term Loan</i></p>

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

<p style='margin-left:.25in' 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='margin-left:.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>NEXI </i><i>Supported</i><i> </i><i>JP</i><i>&yen;5,615 Million</i>
<i>Syndicated</i><i> Term </i><i>Loan</i><i> Facility</i></p>

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

<p style='margin-left:.25in;text-indent:0in;punctuation-wrap:
simple;text-autospace:none;vertical-align:baseline' 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;1,890 million was outstanding as at
June 30, 2005.  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='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b><i>Philippine
Peso Debt:</i></b></p>

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

<p style='margin-left:31.5pt' style="margin-top:0;margin-bottom:0"><i>Php2,</i><i>770</i><i>
Million Peso Fixed Rate Corporate Notes</i></p>

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

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

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Under
the second loan agreement, PLDT borrowed an aggregate amount of Php1,270 million, of which Php360
million matured on June 9, 2003, Php100 million
matured on June 9, 2005 and Php810 million
will mature on June 9, 2010.</p>

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

<p style='margin-left:31.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Term Loans</i></p>

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

<p style='margin-left:45.0pt;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='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' 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 Php340 million was outstanding as at June 30, 2005.  The
loan, which was funded under the JBIC Facility for Private Sector Development
of the Development Bank of the Philippines, matures on October 26, 2005
and since April 2002 is payable in quarterly installments as set forth below:</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:77.84%;margin-left:.75in;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=' 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=' 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=' 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=' 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=' 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=' 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-left:.25in' style="margin-top:0;margin-bottom:0"><i><u>&nbsp;</u></i></p>

<p style='margin-left:31.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Secured</i><i>
Term Loans</i></p>

<p style='margin-left:27.0pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:45.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Php150 Million </i><i>Term Loan Facility</i></p>

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

<p style='margin-left:.25in' 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 facility was fully drawn on December 31, 2002 and payable in seven quarterly installments, with a
grace period of one year, beginning year 2003.  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 was equivalent to 91-day T-bill
rate plus 4% per annum payable quarterly in arrears.  The loan was 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.  This loan was fully paid as at March 31, 2005.</p>

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

<p style='margin-left:45.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Php100 Million Term Loan Facility</i></p>

<p style='margin-left:.25in' 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">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 June 30, 2005, the
outstanding balance of this loan amounted to Php78 million, of which Php22
million will mature in 2005.</p>

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

<p style='margin-left:45.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Php149 Million Term Loan Facility</i></p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">As
at June 30, 2005, Vocativ, a wholly-owned call center subsidiary of ePLDT, had
an outstanding five-year term loan facility of Php129 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.  In April 2005, Php20 million of the loan was pre-terminated.</p>

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

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

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

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

<p style='margin-left:.25in' 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 PLDT&#146;s 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.</p>

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

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

<p style='margin-left:.25in' 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 <br>
(g) other typical events of default, including the commencement of bankruptcy,
insolvency, liquidation or winding up proceedings by PLDT.</p>

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

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">As
at June 30, 2005, 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='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

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

<p style='margin-left:.25in;text-indent:0in' 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 June 30, 2005, ePLDT has complied with
all of its financial covenants.</p>

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

<p style='margin-top:0in;;margin-bottom:0in;
margin-left:.25in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0"><b>Obligations
Under Capital Lease</b></p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">The future minimum payments for
capitalized leases are as follows as at June 30, 2005:</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:95.92%;margin-left:18.4pt;border-collapse:collapse'>

 <tr style='page-break-inside:avoid;height:3.95pt'>
 <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:3.95pt'>
 <p style='margin-top:3.0pt' 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;height:3.95pt'>
 <p align=center style='margin-top:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>(Unaudited)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.1pt'>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in;
 height:7.1pt'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in;
 height:7.1pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(in million pesos)</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">2005(1)</p>
 </td>
 <td   style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.5in;text-align:right' style="margin-top:0;margin-bottom:0">535</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">2006</p>
 </td>
 <td   style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.5in;text-align:right' style="margin-top:0;margin-bottom:0">431</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">2007</p>
 </td>
 <td   style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.5in;text-align:right' style="margin-top:0;margin-bottom:0">317</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">2008</p>
 </td>
 <td   style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.5in;text-align:right' style="margin-top:0;margin-bottom:0">8</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">2009</p>
 </td>
 <td   style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.5in;text-align:right' style="margin-top:0;margin-bottom:0">7</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">2010 and onwards</p>
 </td>
 <td   style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.5in;text-align:right' style="margin-top:0;margin-bottom:0">444</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Total minimum lease payments</p>
 </td>
 <td   style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.5in;text-align:right' style="margin-top:0;margin-bottom:0">1,742</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <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">Less amount representing
 interest</p>
 </td>
 <td   style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.5in;text-align:right' style="margin-top:0;margin-bottom:0">699</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">Present value of net minimum
 lease payments</p>
 </td>
 <td   style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.5in;text-align:right' style="margin-top:0;margin-bottom:0">1,043</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <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">Less capital lease maturing
 within one year</p>
 </td>
 <td   style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.5in;text-align:right' style="margin-top:0;margin-bottom:0">527</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <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;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.5in;text-align:right' style="margin-top:0;margin-bottom:0"> 516</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><i>(1)  </i><i>July 1, 2005</i><i> through </i><i>December 31, 2005</i><i>.</i></p>

<p style='margin-left:.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>Municipal
Telephone Projects</i></p>

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

<p style='margin-left:.25in;text-indent:0in' 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 June 30, 2005, PLDT&#146;s aggregate remaining obligation
under this agreement 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='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:0in' 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.  On May 5, 2005, PLDT received a letter from the DOTC stating that
PLDT is in default for failure to remit to the DOTC the quarterly installments
under the lease agreement.  PLDT is intending to bring the matter to
Arbitration for the Financial Lease Agreement due to clearing opposing
positions of the parties.  As at June 30, 2005, 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 Php35 million and Php735 million,
respectively.</p>

<p style='margin-left:.25in' 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>Other 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='margin-left:.25in;page-break-after:avoid' 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 Php469 million as
at June 30, 2005 in respect of office equipment and facilities.</p>

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

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

<p style='margin-top:0in;;margin-bottom:0in;
margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Preferred Stock Subject to Mandatory Redemption</b></p>

<p style='margin-left:.25in;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">The movements of PLDT&#146;s preferred stock subject to
mandatory redemption follow:</p>

<p style='margin-left:.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:445.5pt;margin-left:.25in;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-top:3.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=4 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-top:3.0pt;margin-right:4.3pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>June 30, 2005</b><b> (Unaudited)</b></p>
 </td>
 <td  colspan=4 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-top:3.0pt;margin-right:4.3pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">December 31, 2004 (Audited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top 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=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Series V</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='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Series VI</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='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Series VII</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='text-align:center;page-break-after:
 avoid' 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'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Series V</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">Series VI</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">Series VII</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">Total</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <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=8 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:40.5pt;text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in million pesos)</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">Balance at beginning of period</p>
 </td>
 <td  valign=bottom 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"><b>2,104</b></p>
 </td>
 <td  valign=bottom 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"><b>6,242</b></p>
 </td>
 <td  valign=bottom 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"><b>6,029</b></p>
 </td>
 <td  valign=bottom 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"><b>14,375</b></p>
 </td>
 <td  valign=bottom 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">2,053</p>
 </td>
 <td  valign=bottom 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">5,435</p>
 </td>
 <td  valign=bottom 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">5,247</p>
 </td>
 <td  valign=bottom 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">12,735</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">Conversion</p>
 </td>
 <td  valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(945)</b></p>
 </td>
 <td  valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(80)</b></p>
 </td>
 <td  valign=bottom 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"><b>&#150;</b></p>
 </td>
 <td  valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(1,025)</b></p>
 </td>
 <td  valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(339)</p>
 </td>
 <td  valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(18)</p>
 </td>
 <td  valign=bottom 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">&#150;</p>
 </td>
 <td  valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(357)</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">Accretion</p>
 </td>
 <td  valign=bottom 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"><b>180</b></p>
 </td>
 <td  valign=bottom 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"><b>413</b></p>
 </td>
 <td  valign=bottom 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"><b>152</b></p>
 </td>
 <td  valign=bottom 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"><b>745</b></p>
 </td>
 <td  valign=bottom 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">390</p>
 </td>
 <td  valign=bottom 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">751</p>
 </td>
 <td  valign=bottom 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">457</p>
 </td>
 <td  valign=bottom 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">1,598</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">Revaluation</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: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=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(11)</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:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(473)</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:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(484)</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:4.3pt;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:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">74</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:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">325</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:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">399</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Balance at end of period</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:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,339</b></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:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>6,564</b></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:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>5,708</b></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:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>13,611</b></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:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,104</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:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,242</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:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,029</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:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14,375</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">As at June 30, 2005, 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 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 Convertible Preferred Stock is convertible at any time at the option of
the holder into one PLDT common share.  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 to PLDT common shares.  Under a put option
exercisable for 30 days, holders of common shares received on mandatory
conversion of the Series V, VI and VII Convertible Preferred Stock will be able
to require PLDT to purchase such PLDT common shares for Php1,700 per share, US$36.132 per share, and JPY4,071.89 per share,
respectively.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">The
Series V, VI and VII Convertible Preferred Stock were designated as compound
instruments consisting of liability and equity components.  The total fair value
of the Series V, VI and VII Convertible Preferred Stock was determined at issue
date, of which the aggregate fair value of the liability component of the
issued Series V, VI and VII Convertible Preferred Stock as at date of issuance
is included under the &#147;Interest-bearing Financial Liabilities&#148; account in the
consolidated balance sheets.  The residual amount was assigned as the equity
component.</p>

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

<p style='margin-left:.25in;text-indent:0in' 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 and the aggregate redemption value is
accreted over the period up to the put option date using the effective interest
rate method.  Accretions added to &#147;Preferred Stock Subject to Mandatory
Redemption&#148; and charged to interest for the six months ended June 30, 2005 and
2004 amounted to Php745 million and Php756 million, respectively.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">&#147;Preferred
Stock Subject to Mandatory Redemption&#148; amounted to Php13,611 million and
Php14,375 million as at June 30, 2005 and December 31, 2004, 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, conversions and additional issuances.  As at June 30, 2005 and December 31, 2004, 2,040,354 shares and 1,060,940 shares, respectively, of the
Convertible Preferred Stock have been converted into PLDT common shares.  The
outstanding shares of Series V, VI and VII Convertible Preferred Stock as at June 30, 2005 were 1,285,535, 4,690,655 and 3,842,000, respectively.  The aggregate
redemption value of the outstanding Series V, VI and VII Convertible Preferred
Stock amounted to Php19,633 million and Php22,016 million as at June 30, 2005 and December 31, 2004, respectively.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">The
corresponding dividends on these shares charged as interest expense amounted to
Php132 million and Php117 million for the six months ended June 30, 2005 and 2004, respectively.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b>Notes
Payable</b></p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Parlance,
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 in December
2004 and another in June 2005 amounting to US$1 million.  The said facilities
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.  The US$950,000 loan facility was
fully paid in March 2005.</p>

<p style='margin-left:.25in;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">&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' style="margin-top:0;margin-bottom:0"><b>18. Other Noncurrent Liabilities</b></p>

<p style='margin-left:.25in;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">This account consists of:</p>

<p style='margin-left:.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:96.86%;margin-left:18.4pt;border-collapse:collapse'>
 <tr>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p style='margin-top:3.0pt;margin-right:0in;margin-bottom:
 0in;margin-left:0in;margin-bottom:.0001pt;punctuation-wrap:hanging;
 text-autospace:ideograph-numeric ideograph-other' 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:4.3pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>June 30, <br>
 2005</b><b> (Unaudited)</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:4.3pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' 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'>
 <p align=right style='margin-top:3.0pt;margin-right:4.3pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">December 31, 2004<br>
 (Audited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.25pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:10.25pt'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;height:10.25pt'>
 <p align=center style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:9.05pt;text-align:center' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Capital expenditures under long-term financing</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>5,786</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">3,970</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Prepayment received under receivable purchase facility
 (Note 14)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,269</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">1,644</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Asset retirement obligations (Note 8)</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>709</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">638</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Unearned revenues</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>86</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">85</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>791</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">822</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;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 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;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>8,641</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;
 padding:0in 0in 0in 0in'>
 <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=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;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">7,159</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-left:.25in;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="margin-top:0;margin-bottom:0"><b>19. Accrued
Expenses and Other Current Liabilities</b></p>

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

<p style='margin-left:.25in;text-align:justify' style="margin-top:0;margin-bottom:0">This account consists of:</p>

<p style='margin-left:.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:96.86%;margin-left:18.4pt;border-collapse:collapse'>
 <tr style='height:13.9pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;height:13.9pt'>
 <p style='margin-top:3.0pt;margin-right:0in;margin-bottom:
 0in;margin-left:0in;margin-bottom:.0001pt;punctuation-wrap:hanging;
 text-autospace:ideograph-numeric ideograph-other' 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:13.9pt'>
 <p align=right style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>June 30, <br>
 2005</b><b> (Unaudited)</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:13.9pt'>
 <p align=right style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' 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;height:13.9pt'>
 <p align=right style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">December 31, 2004<br>
 (Audited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.35pt'>
 <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:9.35pt'>
 <p align=center style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:9.05pt;text-align:center' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;punctuation-wrap:
 hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">Accrued utilities and related expenses</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"><b>5,727</b></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">4,457</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;punctuation-wrap:
 hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">Accrued taxes and related expenses</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"><b>2,582</b></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">2,886</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Accrued interest on various loans (Notes 17 and 20)</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"><b>2,142</b></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">2,235</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Accrual for
 payment for unused sick leave and other employee 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"><b>1,663</b></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">1,624</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Payable in
 installment purchase of equity investment</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"><b>1,343</b></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">1,561</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Others</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"><b>2,647</b></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">2,048</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;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>16,104</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;
 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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;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">14,811</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"><a name="OLE_LINK18"></a><a name="OLE_LINK13">&nbsp;</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='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>20. Related Party Transactions</b></p>

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

<p style='margin-left:.5in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>a.   Air Time Purchase Agreement
between PLDT and AIL and Related Agreements</i></p>

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

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

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

<p style='margin-left:.25in;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.  As at June 30, 2005, PLDT&#146;s
outstanding payables under the original Air Time Purchase Agreement was
Php4,068 million.  See <i>Note 22 &#150; Contractual Obligations and Commercial
Commitments</i> and <i>Note 23 &#150; Provisions and Contingencies </i>for further discussion.<a
name="OLE_LINK24"></a></p>

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

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

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Under an Acknowledgment of the Assignment of 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 December 29, 1998 among PT
Asia Cellular Satellite, AIL, P.T. Bank Internasional Indonesia and various
banks.</p>

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

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

<p style='margin-left:.5in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>b.   Transactions with Major
Stockholders, Directors and Officers </i></p>

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

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">Transactions
to which PLDT or its subsidiaries is 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 June 30, 2005 and December 31, 2004 and for the six
months ended June 30, 2005 and 2004 are as follows:</p>

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

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>1.   Agreements with NTT Communications and/or its
Affiliates</i></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">PLDT
is a party to the following agreements with NTT Communications and/or its
affiliates:</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>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:.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>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;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:54.4pt;text-indent:-.25in;page-break-after:
avoid' 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:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:36.7pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total fees under these agreements amounted to Php114 million and
Php146 million for the six months ended June 30, 2005
and 2004, respectively.  As at June 30,
 2005 and December 31, 2004, outstanding
obligations of PLDT amounted to Php55 million and Php49 million, respectively.</p>

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

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>2.   Agreement between Smart and </i><i>Asia</i><i>
Link B.V., or ALBV.  </i>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.  On February 18, 2004,
Smart and ALBV entered into a renewal of the technical service agreement
extending the effectivity of the terms of the agreement to February 23, 2008.
Furthermore, in view of the acquisition by Smart of Piltel Series K Class I
Convertible Preferred Stock held by PLDT, the parties agreed to make the
consolidated net revenues of Smart the basis for the computation of the 1%
royalty payable by Smart to ALBV, effective from January 1, 2005.  </p>

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

<p style='margin-left:.5in;text-indent:0in' style="margin-top:0;margin-bottom:0">Total fees under these agreements amounted to Php278
million and Php239 million for the six months ended June 30, 2005 and 2004,
respectively.  Outstanding obligations of Smart under the Technical Service
Agreement amounted to Php284 million and Php267 million as at June 30, 2005 and December 31, 2004,
respectively.</p>

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

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>3.   Agreements relating to insurance companies.</i>  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 under
these agreements amounted to Php268 million and Php238 million for the six months ended June 30, 2005 and
2004, respectively.  Two directors of PLDT have a direct/indirect interests in
or serve as director/officer of Gotuaco and Malayan.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b><i>Compensation
of Key Management Personnel of the PLDT Group</i></b></p>

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

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:0in' style="margin-top:0;margin-bottom:0">The
aggregate compensation and benefits paid to the chief executive officer and other
key officers and advisors, as a group, for the six months ended June 30, 2005
and 2004 amounted to approximately Php403 million and Php307 million,
respectively.</p>

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

<p style='margin-left:.25in;text-indent:0in' 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&#146;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&#146;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='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">There are no agreements between PLDT 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&#146;s retirement plan.</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">&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' style="margin-top:0;margin-bottom:0"><b>21. Employee Benefits</b></p>

<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"><b><i>Executive Stock Option Plan, or ESOP</i></b></p>

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

<p style="margin-top:0;margin-bottom:0">On April 27, 1999 and December 10, 1999, the Board of Directors and stockholders, respectively, approved the establishment of an ESOP
and the amendment of the Seventh Article of the Articles of Incorporation of
PLDT denying the pre-emptive right of holders of common stock to subscribe for
any issue of up to 1,289,745 common stock pursuant to the ESOP.  The ESOP
covers management executives, which include officers with rank of Vice
President up to the President, executives with the rank of Manager up to
Assistant Vice President, and advisors/consultants engaged by PLDT.  The ESOP
seeks to motivate option holders to achieve PLDT&#146;s goals, reward option holders
for the creation of shareholder value, align the option holders&#146; interests with
those of the stockholders of PLDT and retain the option holders to serve the
long-term interests of PLDT.  The ESOP is administered by the Executive
Compensation Committee of the Board of Directors.  About 1.3 million common
stock of PLDT have been reserved as underlying shares of options under the ESOP
in 1999. </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">Movements in the number of stock option plan
outstanding are as follows:</p>

<p style='margin-left:.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:6.5in;margin-left:.25in;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;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:3.0pt;margin-right:4.3pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>June 30, <br>
 2005</b><b> (Unaudited)</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:4.3pt;
 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-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:4.3pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">December 31, 2004<br>
 (Audited)</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">Balance at beginning of
 period</p>
 </td>
 <td  valign=bottom style=' border:none;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"><b>536,589</b></p>
 </td>
 <td  valign=bottom style=' border:none;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">&nbsp;</p>
 </td>
 <td  valign=bottom style=' border:none;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">900,118</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">Exercised shares*</p>
 </td>
 <td  valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(168,961)</b></p>
 </td>
 <td  valign=bottom 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">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(336,745)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top 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">Cancelled</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: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=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <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=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(26,784)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Balance at end of period</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:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>367,628</b></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: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;border-bottom:
 double windowtext 2.25pt;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"><a name="OLE_LINK28"></a>536,589</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><i>*    </i><i>Based on date of
payment of exercised shares.</i></p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">As at June 30, 2005, 505,706 shares were exercised by certain officers and executives at an
exercise price of Php814 per share.  Of the 505,706 exercised shares, 7,798
shares were unissued as at June 30, 2005.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">The
fair value of the ESOP plan was estimated at the date of grant using an option
pricing model, which considered annual volatility of 40%, risk-free interest
rate, expected life of option, exercise share price of Php814 and weighted
average share price Php870 for the 1999 Grant and Php315 for the 2002 Grant as
at valuation date.  Total fair value of shares granted amounted to Php359
million as at June 30, 2005 and December
 31, 2004.  The fair value of the options recognized as an expense
for the six months ended June 30, 2005 amounted to Php8 million and none for the six months
ended June 30, 2005.</p>

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

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>LTIP</i></b></p>

<p style='margin-left:.5in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:0in;
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 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='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">The fair
value of the LTIP was estimated using an option pricing model, which considered
annual stock volatility, risk-free interest rate, expected life of option of
four years and weighted average share price Php1,620 as at valuation date.  The
fair value of the options recognized as an expense for the six months ended
June 30, 2005 and 2004 amounted to Php610 million and Php269 million,
respectively.</p>

<p style='margin-left:.5in;text-indent:-.25in' 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"><b><i>Pension</i></b></p>

<p style='margin-left:.5in;text-indent:-.25in;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>Defined Benefit Plans</i></p>

<p style='margin-left:.5in;text-indent:-.25in;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">We have defined benefit pension plans, covering
substantially all of our permanent and regular employees, except Smart, which
require contributions to be made to separate administrative fund.</p>

<p style='margin-left:.5in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Our
actuarial valuation is done on an annual basis.  Based on the latest actuarial
valuation, the actual present value of accrued liability, net of pension cost
and average assumptions used in developing the valuation are as follows:</p>

<p style='margin-left:.5in;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:95.0%;margin-left:18.4pt;border-collapse:collapse'>

 <tr>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p style='margin-top:3.0pt;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'>
 <p align=right style='margin-top:3.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>

 <tr>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p style='margin-left:.4pt;text-indent:-.4pt' style="margin-top:0;margin-bottom:0">Benefit obligation as at December 31, 2004</p>
 </td>
 <td   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">6,925</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Fair value of
 plan assets as at December 31, 2004</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:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">4,449</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Funded status</p>
 </td>
 <td   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">2,476</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Unrealized
 net transition obligation</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">(120)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Unrecognized
 net actuarial gain</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(176)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Accrued
 benefit cost as at December 31, 2004</p>
 </td>
 <td   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">2,180</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Accrual of
 pension cost during the period</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">384</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Contributions</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(157)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Accrued
 benefit cost as at June 30, 2005</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2,407</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.5in;text-indent:-.25in;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">Net pension cost was computed as follows:</p>

<p style='margin-left:.5in;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:96.86%;margin-left:18.4pt;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-top:3.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</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'>
 <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>Six
 Months Ended June 30,</b></p>
 </td>
 </tr>

 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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: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>2005</b></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:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-top: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">2004</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-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;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:0in;margin-right:2.9pt;
 margin-bottom:0in;margin-left:.65in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Unaudited)</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;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'>
 <p align=center style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:40.55pt;text-align:center' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Components of net periodic benefit cost:</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"><b>&nbsp;</b></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=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>
 </tr>
 <tr>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>223</b></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=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">213</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>345</b></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=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">269</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(238)</b></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=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">(188)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Amortizations
 of unrecognized net transition obligation</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"><b>28</b></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=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>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Recognition
 of transitional liability</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"><b>2</b></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=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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Net periodic benefit cost</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 0in 0in 0in'>
 <p align=right style='margin-right:4.45pt;text-align:right' style="margin-top:0;margin-bottom:0"><b> 360</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 0in 0in 0in'>
 <p align=right style='margin-right:4.45pt;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 0in 0in 0in'>
 <p align=right style='margin-right:4.45pt;text-align:right' style="margin-top:0;margin-bottom:0"> 324</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.5in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The weighted average assumptions used to determine
pension benefits are as follows:</p>

<p align=right style='margin-left:.5in;text-align:right;
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:96.86%;margin-left:18.4pt;border-collapse:collapse'>
 <tr>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Discount rate</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;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;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in'>
 <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=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:9.05pt;text-align:right' style="margin-top:0;margin-bottom:0">9%</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Rate of
 increase in compensation</p>
 </td>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <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'>
 <p align=right style='margin-right:9.05pt;text-align:right' style="margin-top:0;margin-bottom:0">7%</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Rate of
 return on plan assets</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:4.3pt;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;padding:0in 0in 0in 0in'>
 <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=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:9.05pt;text-align:right' style="margin-top:0;margin-bottom:0">9%</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">As
at June 30, 2005, our plan assets include investments in shares of
stock of PLDT and Piltel with fair values aggregating Php1,488 million,
which represent about 23% of our beneficial trust fund&#146;s net assets available
for plan benefits.</p>

<p style='margin-left:.25in' 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>Defined Contribution Plan</i></p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Smart
maintains a trustee-managed, tax-qualified, multi-employer plan covering
substantially all permanent and regular employees.  The plan has a defined
contribution format wherein Smart&#146;s obligation is limited to specified
contribution to the plan.  It is being financed by the participating companies
(Smart and its subsidiary, I-Contacts, Inc.) and employees&#146; contribution is
optional.</p>

<p style='margin-left:.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:96.86%;margin-left:18.4pt;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-top:3.0pt;margin-right:0in;margin-bottom:
 0in;margin-left: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>
 </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'>
 <p align=center style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Six Months Ended June 30,</b></p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <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;padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2005</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:13.45pt'>
 <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-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2004</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;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   colspan=3 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:2.9pt;
 margin-bottom:0in;margin-left:.65in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Unaudited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.25pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:10.25pt'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;height:10.25pt'>
 <p align=center style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:40.55pt;text-align:center' style="margin-top:0;margin-bottom:0">(in million
 pesos)</p>
 </td>
 </tr>

 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Expense
 recognized for defined benefit plans</p>
 </td>
 <td   valign=bottom 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"><b>360</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <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'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">324</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Expense
 recognized for defined contribution plan</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:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>24</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:4.3pt;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:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">43</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-.4pt' 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'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b> 384</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <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=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"> 367</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-left:.25in;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' style="margin-top:0;margin-bottom:0"><b>22. Contractual Obligations and Commercial
Commitments</b></p>

<p style='margin-left:.25in;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"><b><i>Contractual Obligations</i></b></p>

<p style='margin-left:.25in;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">The following table discloses our contractual
obligations outstanding as at June 30,
 2005:</p>

<p style='margin-left:.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:96.2%;margin-left:18.4pt;border-collapse:collapse'>
 <tr style='height:10.25pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;height:10.25pt'>
 <p style='margin-top:3.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=5 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:10.25pt'>
 <p align=center style='margin-top:3.0pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Payments Due by Period</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">&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-left:6.4pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Total</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-left:6.4pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Within<br>
 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 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>2</b><b>-3</b></p>
 <p align=center style='margin-left:6.4pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>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 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>4</b><b>-5</b></p>
 <p align=center style='margin-left:6.4pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>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 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>After 5<br>
 years</b></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=5 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 million pesos)</p>
 </td>
 </tr>
 <tr style='height:8.1pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <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:8.1pt'>
 <p align=right 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:8.1pt'>
 <p align=right 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:8.1pt'>
 <p align=right 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:8.1pt'>
 <p align=right 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:8.1pt'>
 <p 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">Long-term
 debt(1)</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">141,468</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">29,036</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">38,385</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">21,173</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">52,874</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">Long-term
 lease obligations: </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=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>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Operating lease</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">3,704</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">1,103</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">843</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">1,134</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Capital lease</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">1,742</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">760</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">524</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">13</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">445</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">Unconditional
 purchase obligations(2)</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">11,861</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">4,556</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">2,249</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">2,247</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">2,809</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Other
 long-term obligations</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">19,633</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">&#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:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,853</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">13,780</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">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Total
 contractual obligations</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;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>178,408</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 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>34,976</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 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>48,114</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 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>38,056</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;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>57,262</b></p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a
name="OLE_LINK19">&nbsp;</a></p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>(1)</i><i>   Before
deducting unamortized debt discount and debt issuance costs.</i></p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>(2)</i><i>   Based
on the original 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='margin-left:.25in' style="margin-top:0;margin-bottom:0"><i>Long-term
Debt</i></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='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">For a discussion of our long-term debt, see <i>Note 17
</i>&#150; <i>Interest-bearing Financial Liabilities</i>.</p>

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

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>Long-term
Operating Lease Obligations</i></p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><i>Domestic
Fiber Optic Network Submerged Plant Maintenance Agreement</i>.   As discussed in <i>Note 20 &#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 June 30, 2005, PLDT&#146;s
aggregate remaining obligation under this agreement was approximately Php39
million.</p>

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

<p style='margin-left:.25in' 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 June 30, 2005, PLDT&#146;s aggregate
remaining obligation under these contracts amounted to approximately Php24 million.</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:.25in' 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 June 30, 2005, PLDT&#146;s
aggregate remaining obligation under this agreement was approximately Php40 million.</p>

<p style='margin-left:.25in' 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>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 Php3,325 million as
at June 30, 2005 in respect of office and cell site rentals with over
3,000 lessors nationwide, PLDT has lease obligations aggregating Php96  million
as at June 30, 2005, and ePLDT has lease obligations aggregating Php180
million as at June 30, 2005 in respect of certain office space rentals.</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>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='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">For a discussion of our long-term capital lease
obligations, see <i>Note 17 &#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='margin-left:.25in' style="margin-top:0;margin-bottom:0"><i>Air
Time Purchase Agreement with AIL.  </i>As
discussed in <i>Note 20 &#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 required PLDT to purchase from AIL a minimum of US$5 million worth of
air time annually over ten years commencing on January 1, 2002, the date of
commercial operations of the Garuda I Satellite.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">In
the event that AIL&#146;s aggregate billing revenue is less than US$45 million in
any given year, the Air Time Purchase Agreement also 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:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

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

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

<p style='margin-left:.25in' 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 20 &#150; Related Party Transactions</i> and <i>Note 23 &#150;
Provisions and Contingencies </i>for further details relating to the Air Time
Purchase Agreement with AIL.</p>

<p style='margin-left:.25in' 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">As at June 30,
 2005, PLDT&#146;s aggregate remaining minimum
obligation under the original Air Time Purchase Agreement was approximately Php11,857 million.</p>

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

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

<p style='margin-left:.25in' 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, 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 June 30, 2005,
ePLDT&#146;s aggregate remaining minimum obligation under this agreement was
approximately Php4 million pertaining to annual support fee.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><i>License
Purchase Agreement with I-Contact Solutions Pte. Ltd.</i>  On April 2,
 2003, iPlus is a wholly-owned subsidiary
of ePLDT and the Philippines&#146; pioneer in IP-based IT response center, entered into
an Application Services Provider, or ASP, and Reseller Contract with I-Contact
Solutions Pte. Ltd., or I-Contact, of Singapore.  Under the agreement, iPlus will purchase licenses
of the CosmoCall Universe &#153; IP-based contact center solution.  CosmoCall
Universe supports multi-channel customer interactions including telephone, web
chat, web voice, web video, web collaboration, e-mail and voicemail in one high
capacity, high availability, multi-tenant platform.  CosmoCall Universe is a
complete, unified contact center suite that includes ACD, IVR, CTI, predictive
dialing, multimedia recording and a complement of other management
applications.  The aggregate value of these licenses is US$2.1 million and
these licenses will be delivered quarterly over a two-year period.  Further to
the agreement, I-Contact will appoint iPlus as the exclusive reseller and ASP
for the Philippine market and will provide iPlus with all the necessary support
in terms of sales, marketing, and technical services.  Effective March 30, 2004,
I-Contact has agreed to amend the agreement and waived all financial
obligations and committed seats requirement over the two-year period.  iPlus
will pay all its remaining obligations pertaining only to the 300 seats
delivered by I-Contact.  In June 2005, iPlus committed to purchase additional
50 predictive dialer and Cosmocorder licenses in the amount of Php18 million.</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>Other Long-term Obligations</i></p>

<p style='margin-left:.25in' 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>Mandatory Conversion and Purchase of Shares</i>.   As discussed in <i>Note 9 &#150; Investments in
Associates </i>and <i>Note 17 &#150; Interest-bearing Financial Liabilities</i>, as
at June 30, 2005, 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 2004.</p>

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

<p style='margin-left:.25in' 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 PLDT common share.  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 to PLDT
common shares.  Under a put option exercisable for 30 days, holders of common
shares received on mandatory conversion of the Series V, VI and VII Convertible
Preferred Stock will be able to require PLDT to purchase such PLDT common
shares for Php1,700 per share, US$36.132 per share, and JPY4,071.89 per share,
respectively.  </p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">As at June 30, 2005, 1,435,905 shares of Series V Convertible Preferred Stock and 604,449 shares
of Series VI Convertible Preferred Stock had been converted to PLDT common
shares.  The aggregate value of the put option based on outstanding shares as
at June 30, 2005 was Php19,633 million, of which Php11,706 million is payable
on June 4, 2008 and Php7,927 million on June 4, 2009, if all of the outstanding
shares of Series V, VI and VII Convertible Preferred Stock were mandatorily
converted and all the underlying common shares were put to PLDT.  As at June 30, 2005, 1,285,535 shares of Series V, 4,690,655 shares of Series VI and 3,842,000
shares of Series VII Convertible Preferred Stock remain outstanding.  The
market value of the underlying shares of common stock was Php13,549 million,
based on the market price of PLDT common shares of Php1,620 per share as at June 30, 2005.</p>

<p style='margin-left:.25in' 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"><a
name="OLE_LINK16"><b><i>Commercial Commitments</i></b></a></p>

<p style='margin-left:.25in' 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">As at June 30,
 2005, our outstanding commercial
commitments, in the form of letters of credit, amounted to Php947 million.
These commitments will expire within one year.</p>

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

<p style='margin-left:.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="margin-top:0;margin-bottom:0"><b>23. Provisions
and Contingencies </b></p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">We
have made a reasonable estimate of the amount necessary to pay or settle the
contested assessment in the event of an unfavorable judgment against us and
have made the appropriate provisions in our unaudited consolidated financial
statements as at June 30, 2005 aggregating Php5,854 million in respect of the
following:</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><i>NTC
supervision and regulation fees, or SRF</i></p>

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

<p style='margin-left:.25in' 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 June 30, 2005, 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='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

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

<p style='margin-left:.25in' 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.  Morever, 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-left:.25in;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"><a
name="OLE_LINK17"><i>Local business and
franchise tax assessments</i></a></p>

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

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

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

<p style='margin-left:.25in;text-indent:0in' 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 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 quality of treatment clause. </p>

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

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

<p style='margin-left:.25in;text-indent:0in' 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 tax from several cities and provinces following PLDT&#146;s decision to
stop payment of local franchise and business taxes.  </p>

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

<p style='margin-left:.25in;text-indent:0in' 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 Php55 million as at June 30, 2005 for local franchise tax covering up to end
of 2004.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">PLDT
continues to contest the remaining assessments amounting to Php3.7 million as
at June 30, 2005, 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='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

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

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

<p style='margin-left:.25in;text-indent:0in' 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.  The RTC of
Makati has denied Makati&#146;s Motion for Reconsideration on November 12, 2004.  They have filed a Motion for Extension to file a Petition for Review with the
Court of Appeals.  However, on June 9, 2005, the Court of Appeals has dismissed
the appeal filed by the City of Makati.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">The
RTC of Iloilo has likewise ruled in a decision dated January 19, 2005 that
Smart is exempt from payment of local franchise tax to the City of Iloilo.  The
City of Iloilo has filed an appeal directly with the Supreme Court
but the Court has yet to give it due course.</p>

<p style='margin-left:.25in' 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>Piltel&#146;s Bureau of Internal Revenue, or BIR,
Assessment</i></p>

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

<p style="margin-top:0;margin-bottom:0">Piltel received the following assessment notices
from the BIR:</p>

<p style='margin-left:.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:96.86%;margin-left:18.4pt;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 style='margin-top:0in;margin-right:.05in;margin-bottom:
 0in;margin-left:9.35pt;margin-bottom:.0001pt;text-indent:-9.35pt;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 style='margin-top:0in;margin-right:.05in;margin-bottom:
 0in;margin-left:9.35pt;margin-bottom:.0001pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Tax Assessment 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:none;
 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"><b>Basic</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:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Interest</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:9.05pt;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='margin-top:0in;margin-right:.05in;margin-bottom:
 0in;margin-left:9.35pt;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;padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.05in;margin-bottom:
 0in;margin-left:9.35pt;margin-bottom:.0001pt;text-indent:-9.35pt;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'>
 <p align=center style='margin-right:9.05pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.05in;margin-bottom:
 0in;margin-left:9.35pt;margin-bottom:.0001pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">1998</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.05in;margin-bottom:
 0in;margin-left:9.35pt;margin-bottom:.0001pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Value Added Tax, or VAT</p>
 </td>
 <td   valign=bottom 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">85.7</p>
 </td>
 <td   valign=bottom 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">68.7</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:9.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 154.4</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.05in;margin-bottom:
 0in;margin-left:9.35pt;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=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.05in;margin-bottom:
 0in;margin-left:9.35pt;margin-bottom:.0001pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Overseas Communications Tax</p>
 </td>
 <td   valign=bottom 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">31.8</p>
 </td>
 <td   valign=bottom 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">25.5</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:9.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">  57.3</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.05in;margin-bottom:
 0in;margin-left:9.35pt;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=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.05in;margin-bottom:
 0in;margin-left:9.35pt;margin-bottom:.0001pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Income Tax</p>
 </td>
 <td   valign=bottom 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">12.4</p>
 </td>
 <td   valign=bottom 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">9.4</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:9.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">  21.8</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.05in;margin-bottom:
 0in;margin-left:9.35pt;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=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.05in;margin-bottom:
 0in;margin-left:9.35pt;margin-bottom:.0001pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Administrative Penalties</p>
 </td>
 <td   valign=bottom 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">0.1</p>
 </td>
 <td   valign=bottom 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">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:9.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">   0.1</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.05in;margin-bottom:
 0in;margin-left:9.35pt;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=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.05in;margin-bottom:
 0in;margin-left:9.35pt;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=' 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">&nbsp;</p>
 </td>
 <td   valign=bottom 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">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:9.05pt;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=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.05in;margin-bottom:
 0in;margin-left:9.35pt;margin-bottom:.0001pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">1999</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.05in;margin-bottom:
 0in;margin-left:9.35pt;margin-bottom:.0001pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">VAT</p>
 </td>
 <td   valign=bottom 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">82.8</p>
 </td>
 <td   valign=bottom 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">67.8</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:9.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 150.6</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.05in;margin-bottom:
 0in;margin-left:9.35pt;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=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.05in;margin-bottom:
 0in;margin-left:9.35pt;margin-bottom:.0001pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Income Tax</p>
 </td>
 <td   valign=bottom 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">17.8</p>
 </td>
 <td   valign=bottom 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">13.8</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:9.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">  31.6</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.05in;margin-bottom:
 0in;margin-left:9.35pt;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=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.05in;margin-bottom:
 0in;margin-left:9.35pt;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=' 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">&nbsp;</p>
 </td>
 <td   valign=bottom 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">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:9.05pt;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=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.05in;margin-bottom:
 0in;margin-left:9.35pt;margin-bottom:.0001pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">2001</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.05in;margin-bottom:
 0in;margin-left:9.35pt;margin-bottom:.0001pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">VAT</p>
 </td>
 <td   valign=bottom 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">56.1</p>
 </td>
 <td   valign=bottom 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">35.1</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:9.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">  91.2</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:0in;margin-right:.05in;margin-bottom:
 0in;margin-left:9.35pt;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;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.05in;margin-bottom:
 0in;margin-left:9.35pt;margin-bottom:.0001pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Income Tax</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:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13.4</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:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8.9</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:9.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">  22.3</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Piltel
filed applications for compromise settlement with the BIR for the deficiency
tax assessments of 1998 and 1999, citing as basis for the compromise settlement
its financial incapacity on account of networth and earnings deficit.  Last
June 22, 2005, however, Piltel received a letter from the BIR dated May 9, 2005 denying
the applications for compromise settlements for the 1998 and 1999 tax
assessments.  Piltel intends to file a request for reconsideration with the BIR
by presenting its latest audited and unaudited financial statements, which
indicate that Piltel would still have networth and earnings deficit.  If
reconsidered, Piltel would be permitted to settle its deficiency tax
liabilities by paying 10% to 40% of the assessed deficiency taxes.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Piltel
filed last June 20, 2005 an administrative protest in connection with the 2001
tax assessment.  Last July 1, 2005, Piltel received a tax verification notice,
which granted a request for reinvestigation for the 2001 tax assessment.  Piltel
also intends to pursue an application for compromise settlement with the BIR
once the reinvestigation is concluded and the tax assessment finalized.</p>

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

<p style='margin-left:.25in' 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='margin-left:.25in' 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.  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 and has to make supplemental air time purchase payments
not to exceed US$15 million per year during the ten-year term in the event
revenues generated are less than US$45 million in any given year.  The air time payment obligations shall remain in
effect until all indebtedness incurred by AIL have been fully repaid.  See <i>Note 20 &#150; Related Party Transactions</i> and <i>Note
22 &#150; Contractual Obligations and Commercial Commitments</i> for detailed
discussion of the terms of the agreement.</p>

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

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">In March
2003, PLDT, together with the other founder NSPs, entered into a Standstill
Agreement with AIL.  Payments made to AIL under the Air Time Purchase Agreement
based on billings of actual usage and the Standstill Agreement amounted to US$2
million and US$1 million for the second quarters of 2005 and 2004,
respectively.</p>

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

<p style='margin-left:.25in;text-indent:0in' 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 June 30, 2005, PLDT&#146;s outstanding payables under the original Air Time Purchase Agreement
was approximately Php4,068 million.  Negotiations are continuing with the
relevant parties towards an amicable settlement of this matter.  Prior to
further negotiation of definitive transaction agreement among the parties, PLDT
deposited US$21.5 million in an escrow account on March 28, 2005 which was to
be disbursed upon the execution and delivery of mutually agreeable definitive
transaction agreement on or before April 29, 2005.  The parties involved had
not reached an agreement and on May 2, 2005, PLDT formally requested for the
return of amount deposited which was returned on May 12, 2005.</p>

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

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">As
at June 30, 2005, PLDT&#146;s aggregate remaining minimum obligation under
the original Air Time Purchase Agreement was approximately Php11,857 million.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">We
made a reasonable estimate of the amount necessary in the event such obligation
would be settled and have made the appropriate provisions in our unaudited
consolidated financial statements as at June 30, 2005 with due consideration of
AIL&#146;s existing indebtedness and of PLDT&#146;s share as one of the founder NSPs.  </p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><a name="OLE_LINK25">&nbsp;</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"><a name="OLE_LINK11">&nbsp;</a></p>

</div>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>24. Financial Assets and Liabilities</b></p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Our
financial assets and liabilities are recognized initially at fair value.
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='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:0in' 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 June 30, 2005 and December 31, 2004.  There are no material unrecognized financial assets and liabilities as
at June 30, 2005 and December 31, 2004.</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:97.22%;margin-left:18.4pt;border-collapse:collapse'>

 <tr style='page-break-inside:avoid;height:15.35pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;height:15.35pt'>
 <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;height:15.35pt'>
 <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;height:15.35pt'>
 <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:15.35pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;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;height:15.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>June 30, <br>
 2005</b><b> (Unaudited)</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:15.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">December 31,<br>
  2004 (Audited)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:15.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>June 30, <br>
 2005</b><b> (Unaudited)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:15.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">December 31,<br>
  2004 (Audited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.5pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 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;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 million pesos)</p>
 </td>
 </tr>

 <tr style='height:11.25pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:11.25pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Noncurrent Financial
 Assets</b></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"><b>&nbsp;</b></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:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <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=' padding:0in 0in 0in 0in;
 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"><b>109</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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">104</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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"><b>109</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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">104</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:10.35pt'>
 <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=' padding:0in 0in 0in 0in;
 height:10.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>3,694</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:10.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,116</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:10.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>3,694</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:10.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,116</p>
 </td>
 </tr>
 <tr style='height:11.7pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:11.7pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Notes
 receivable</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:11.7pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>346</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:11.7pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">286</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:11.7pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>346</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:11.7pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">286</p>
 </td>
 </tr>
 <tr style='height:8.95pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:8.95pt'>
 <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;padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4,149</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,506</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4,149</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,506</p>
 </td>
 </tr>
 <tr style='height:9.85pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:9.85pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Current Financial Assets</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:9.85pt'>
 <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;
 height:9.85pt'>
 <p align=right 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:9.85pt'>
 <p align=right 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:9.85pt'>
 <p 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:11.7pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:11.7pt'>
 <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=' padding:0in 0in 0in 0in;
 height:11.7pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>35,629</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:11.7pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">27,321</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:11.7pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>35,629</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:11.7pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">27,321</p>
 </td>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <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=' padding:0in 0in 0in 0in;
 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"><b>27</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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">3,873</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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"><b>27</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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">3,873</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <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=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>8,457</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,404</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>8,457</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,404</p>
 </td>
 </tr>
 <tr style='height:8.1pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:8.1pt'>
 <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;padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>217</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">335</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>217</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">335</p>
 </td>
 </tr>
 <tr style='height:8.95pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:8.95pt'>
 <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;padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>44,330</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">41,933</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>44,330</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">41,933</p>
 </td>
 </tr>
 <tr style='height:10.75pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:10.75pt'>
 <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;padding:0in 0in 0in 0in;height:10.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>48,479</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:10.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">46,439</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:10.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>48,479</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:10.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">46,439</p>
 </td>
 </tr>
 <tr style='height:6.6pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:6.6pt'>
 <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;
 height:6.6pt'>
 <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;
 height:6.6pt'>
 <p align=right 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:6.6pt'>
 <p align=right 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:6.6pt'>
 <p 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:8.1pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Noncurrent Financial
 Liabilities</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <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;
 height:8.1pt'>
 <p align=right 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:8.1pt'>
 <p align=right 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:8.1pt'>
 <p 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:.1in'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.1in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Long-term
 debt - net of current portion*</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.1in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>102,675</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.1in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">121,012</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.1in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>112,214</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.1in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">132,803</p>
 </td>
 </tr>
 <tr style='height:4.5pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.5pt'>
 <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=' padding:0in 0in 0in 0in;
 height:4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>516</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">601</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>516</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">601</p>
 </td>
 </tr>
 <tr style='height:9.45pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.45pt'>
 <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=' padding:0in 0in 0in 0in;
 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"><b>13,611</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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">14,375</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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"><b>16,994</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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">18,237</p>
 </td>
 </tr>
 <tr style='height:5.85pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:5.85pt'>
 <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=' padding:0in 0in 0in 0in;
 height:5.85pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4,755</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:5.85pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,903</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:5.85pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4,755</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:5.85pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,903</p>
 </td>
 </tr>
 <tr style='height:7.6pt'>
 <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:7.6pt'>
 <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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>121,557</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:7.6pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">141,891</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:7.6pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>134,479</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:7.6pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">157,544</p>
 </td>
 </tr>
 <tr style='height:4.0pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:4.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Current Financial
 Liabilities</b></p>
 </td>
 <td   valign=bottom style=' border:none;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"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;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=' border:none;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"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;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>
 </tr>
 <tr style='height:.1in'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.1in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Notes
 payable*</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.1in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>56</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.1in'>
 <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=bottom style=' padding:0in 0in 0in 0in;
 height:.1in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>56</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.1in'>
 <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>
 </tr>
 <tr style='height:8.1pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p style='margin-left: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=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>28,880</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">28,018</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>29,614</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">29,083</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:10.35pt'>
 <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=' padding:0in 0in 0in 0in;
 height:10.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>527</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:10.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">425</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:10.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>527</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:10.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">425</p>
 </td>
 </tr>
 <tr style='height:4.95pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:4.95pt'>
 <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=' 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"><b>5,300</b></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">7,029</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"><b>5,300</b></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">7,029</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <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=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>229</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">474</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>229</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">474</p>
 </td>
 </tr>
 <tr style='height:9.85pt'>
 <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:9.85pt'>
 <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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:9.85pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>34,992</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:9.85pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">36,004</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:9.85pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>35,726</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:9.85pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">37,069</p>
 </td>
 </tr>
 <tr style='height:6.25pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:6.25pt'>
 <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;padding:0in 0in 0in 0in;height:6.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>156,549</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:6.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">177,895</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:6.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>170,205</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:6.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">194,613</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">*    <i>Included under &#147;Interest-bearing Financial Liabilities&#148;
in the consolidated balance sheets.</i></p>

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

<p style='margin-left:.25in;text-indent:0in' 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='margin-left:.25in;text-indent:0in' 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">Interest-bearing Financial Liabilities:</p>

<p style='margin-left:.25in;text-indent:0in' 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>Long-term debt:</i>
Fair value is based on the following:</p>

<p style='margin-left:.25in;text-indent: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=1 cellspacing=0 cellpadding=0
 style='width:96.2%;margin-left:18.4pt;border-collapse:collapse;border:none'>
 <tr>
 <td   valign=top 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=top 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:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' 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='margin-left:.25in' 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">Derivative instruments:</p>

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

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

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

<p style='margin-left:.25in;text-indent:0in' 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 amount of consideration at the time of initial
recognition.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0"><i>Financial
assets and liabilities carried at amortized cost</i></p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Unamortized
debt discount, representing debt issuance cost and any difference between the
fair value of consideration given or received on initial recognition, included
in following financial liabilities amounted to Php15,370 million and Php17,363
million as at June 30, 2005 and December 31, 2004, respectively, see <i>Note 17
&#150; Interest-bearing Financial Liabilities</i>.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0"><i>Financial
assets and liabilities carried at fair value</i></p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">The
following financial assets and liabilities carried at fair value as at June 30, 2005 and December 31, 2004.</p>

<p style='margin-left:.25in;text-indent: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:96.86%;margin-left:18.4pt;border-collapse:collapse'>

 <tr>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:3.0pt;margin-right:0in;margin-bottom:
 0in;margin-left:0in;margin-bottom:.0001pt;punctuation-wrap:hanging;
 text-autospace:ideograph-numeric ideograph-other' 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:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>June 30, <br>
 2005</b><b><br>
 (Unaudited)</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:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">December 31, 2004<br>
 (Audited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.0pt'>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:8.0pt'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 padding:0in 0in 0in 0in;height:8.0pt'>
 <p align=center style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:40.5pt;text-align:center' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>

 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Investments-available-for-sale</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"><b>109</b></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">104</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Derivative instruments</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(1,073)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,926)</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 0in 0in 0in'>
 <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;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(964)</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 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,822)</p>
 </td>
 </tr>
</table></center></div>

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

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

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Our
derivative financial instruments are accounted for as either cash flow hedges
or transactions not designated as hedges.  Cash flow hedges refer to those
transactions that hedge our exposure to variability in cash flows attributable
to a particular risk associated with a recognized asset or liability. Changes
in the fair value of these instruments are recognized as cumulative translation
adjustments in equity until the hedged item is recognized in earnings.  For
transactions that are not designated as hedges, any gains or losses arising
from the changes in fair value are recognized directly to income for the
period.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">The table
below sets out the information about our derivative financial instruments as at
 June 30, 2005 and December 31, 2004:</p>

<p style='margin-left:.25in;text-indent: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:96.86%;margin-left:18.4pt;border-collapse:collapse'>

 <tr style='page-break-inside:avoid;height:10.25pt'>
 <td   colspan=2 valign=bottom style=' border:none;
 border-top:solid windowtext 1.5pt;padding:0in 0in 0in 0in;height:10.25pt'>
 <p align=center style='margin-top:3.0pt;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;height:10.25pt'>
 <p align=center style='margin-top:3.0pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>June 30, 2005</b><b><br>
 (Unaudited)</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:10.25pt'>
 <p align=center style='margin-top:3.0pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">December 31, 2004<br>
 (Audited)</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>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 <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-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:9.35pt;
 margin-bottom:0in;margin-left:.2pt;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' 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;
 page-break-after:avoid' 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;
 page-break-after:avoid' 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;
 page-break-after:avoid' 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;
 page-break-after:avoid' 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;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 style='margin-left:9.0pt;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'>
 <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   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>PLDT</i></b></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"><b>&nbsp;</b></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"><b>&nbsp;</b></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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 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: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'>
 <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'>
 <p align=right 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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cash flow hedges:</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"><b>&nbsp;</b></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"><b>&nbsp;</b></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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Long-term currency swaps</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"><b>&nbsp;</b></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"><b>&nbsp;</b></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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:20.9pt;
 margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2017</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>US$</b><b>300</b></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"><b>Php</b><b>624</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$300</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">Php748</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.1pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p align=right style='margin-top:0in;margin-right:20.9pt;
 margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2012</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p align=right style='margin-right:11.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>250</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(361)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p align=right style='margin-right:11.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">250</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">282</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right;
 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=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'>
 <p align=right style='margin-right:11.5pt;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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Long-term foreign currency options</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:20.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2009</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>175</b></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"><b>915</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;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'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">672</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.5pt;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:11.5pt;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'>
 <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'>
 <p align=right style='margin-right:11.5pt;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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Short-term foreign currency options</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>76</b></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"><b>(156)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">76</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">(198)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right;
 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=right style='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'>
 <p align=right style='margin-right:11.5pt;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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Transactions not designated as hedges:</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right;
 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=right style='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'>
 <p align=right 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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Long-term foreign currency options</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"><b>175</b>(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"><b>76</b></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">175(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">(22)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right;
 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=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'>
 <p align=right 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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Short-term currency options</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"><b>88</b>(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"><b>76</b></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">76(2)</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">117</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>JPY</b><b>655</b></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"><b>(12)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">JPY&#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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right;
 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=right style='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'>
 <p align=right style='margin-right:11.5pt;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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Interest rate swap</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>US$125</b></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"><b>(2,315)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$125</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">(3,468)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right;
 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=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'>
 <p align=right 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='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   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Forward foreign exchange contracts</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>87</b></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"><b>92</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;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'>
 <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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 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:11.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>JPY</b><b>879</b></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"><b>(19)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">JPY14</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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 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:11.5pt;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'>
 <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'>
 <p align=right style='margin-right:11.5pt;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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Bifurcated embedded derivatives</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:11.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>US$</b><b>&#150;</b></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:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></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:11.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$1</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='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   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;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=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;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:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(1,080)</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:11.5pt;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='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,863)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Smart</i></b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;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:2.9pt;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'>
 <p align=right style='margin-right:11.5pt;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='text-align:right;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=2 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:11.5pt;text-align:right;
 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=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'>
 <p align=right style='margin-right:11.5pt;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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Transactions not designated as hedges:</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right;
 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=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'>
 <p align=right style='margin-right:11.5pt;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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Forward foreign exchange contracts</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>US$</b><b>&#150;</b></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"><b>(1)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$69</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">(77)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Bifurcated embedded derivatives</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:11.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>9</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"><b>8</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:11.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">19</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">14</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <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:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;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:
 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>7</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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(63)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net liabilities</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(Php</b><b>1,073)</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;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:
 double windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php1,926)</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-left:31.5pt;text-indent:-13.5pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>(1)</i><i>   Non-hedged portion of 2009 long-term foreign
currency options based on the same notional amount as the hedged portion.</i></p>

<p style='margin-left:31.5pt;text-indent:-13.5pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>(2)</i><i>   Non-hedged portion of short-term foreign currency
options based on the same notional amount as the hedged portion.</i></p>

<p style='margin-left:31.5pt;text-indent:-13.5pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>(3)</i><i>   Non-hedged portion of short-term foreign currency
options is inclusive of the same notional amount as the hedged portion and
additional short-term foreign currency options not designated as hedges.</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:96.86%;margin-left:18.4pt;border-collapse:collapse'>

 <tr>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.5pt;
 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:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>June 30, <br>
 2005</b><b> (Unaudited)</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:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' 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'>
 <p align=right style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">December 31, 2004<br>
 (Audited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.0pt'>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:8.0pt'>
 <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;height:8.0pt'>
 <p align=center style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:9.05pt;text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>

 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Presented as:</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"><b>&nbsp;</b></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">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Noncurrent assets</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"><b>3,694</b></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">4,116</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Current assets</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"><b>217</b></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">335</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Noncurrent liabilities</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(4,755)</b></p>
 </td>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(5,903) </p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Current liabilities</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(229)</b></p>
 </td>
 <td   valign=bottom style=' 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=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(474)</p>
 </td>
 </tr>
 <tr style='height:6.7pt'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 0in 0in 0in;height:6.7pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Net
 liabilities</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 0in 0in 0in;height:6.7pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(1,073)</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 0in 0in 0in;height:6.7pt'>
 <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 0in 0in 0in;height:6.7pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,926)</p>
 </td>
 </tr>
</table></center></div>

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

<p style='text-indent:.25in' style="margin-top:0;margin-bottom:0">Cumulative translation adjustments as at June 30, 2005 and December 31, 2004 consists of:</p>

<p style='margin-left:.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:96.86%;margin-left:18.4pt;border-collapse:collapse'>

 <tr>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:3.0pt;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'>
 <p align=right style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>June 30, <br>
 2005</b><b> (Unaudited)</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:2.9pt;
 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=' 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:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">December 31, 2004<br>
 (Audited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.0pt'>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;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;height:8.0pt'>
 <p align=center style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:9.05pt;text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>

 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cumulative
 translation adjustments &#150; beginning</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>362</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">&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">549</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Movements
 of cumulative translation adjustments:</p>
 </td>
 <td   valign=bottom style=' border: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>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border: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">&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;
 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:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Currency
 translation differences</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"><b>(2)</b></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">17</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net loss
 on cash flow hedges</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"><b>(867)</b></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='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(159)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net gain
 (loss) on available-for-sale financial 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"><b>6</b></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='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(5)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Net gain (loss) on cash flow hedges removed from cumulative
 translation adjustments and taken to profit or loss</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"><b>131</b></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='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(133)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Deferred
 income tax effects on cash flow hedge</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>236</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">&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">93</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;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;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(496)</b><b> </b></p>
 </td>
 <td   valign=bottom style=' border: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">&nbsp;</p>
 </td>
 <td   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">(187)</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 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cumulative
 translation adjustments &#150; ending</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 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(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;
 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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;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"> 362</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">Analysis
of gain (loss) on derivative transactions for the six months ended June 30, 2005 and 2004 are as follows:</p>

<p style='margin-left:.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:96.86%;margin-left:18.4pt;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-top:3.0pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</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'>
 <p align=center style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Six Months Ended June 30,</b></p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <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;padding:0in 0in 0in 0in;
 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>2005</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:13.45pt'>
 <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-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;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">2004</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;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   colspan=3 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:2.9pt;
 margin-bottom:0in;margin-left:49.65pt;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Unaudited)</p>
 </td>
 </tr>
 <tr style='height:8.45pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:8.45pt'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net
 mark-to-market loss &#150; ending</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:8.45pt'>
 <p align=right style='text-align:right;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>(1,073)</b></p>
 </td>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in;
 height:8.45pt'>
 <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;
 height:8.45pt'>
 <p align=right style='text-align:right;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(1,664)</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:10.35pt'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net
 mark-to-market loss &#150; beginning</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='text-align:right;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>(1,926)</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <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;padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='text-align:right;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(1,060)</p>
 </td>
 </tr>
 <tr style='height:7.6pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:7.6pt'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net
 change</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:7.6pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b> 853</b></p>
 </td>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in;
 height:7.6pt'>
 <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;
 height:7.6pt'>
 <p align=right style='text-align:right;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(604)</p>
 </td>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net
 loss charged to cumulative translation adjustments</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 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"><b>867</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <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=' padding:0in 0in 0in 0in;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <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 period</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <p align=right style='text-align:right;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>(533)</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 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=' padding:0in 0in 0in 0in;
 height:6.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">99</p>
 </td>
 </tr>
 <tr style='height:7.6pt'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 0in 0in 0in;height:7.6pt'>
 <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=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,187</b></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 0in 0in 0in;height:7.6pt'>
 <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;
 padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='text-align:right;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(505)</p>
 </td>
 </tr>

</table></center></div>

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

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

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b><i>Cash
Flow Hedges</i></b></p>

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

<p style='margin-left:27.0pt;text-indent:0in' style="margin-top:0;margin-bottom:0"><i>Long-term
Currency Swaps</i></p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">PLDT
entered into long-term principal-only currency swap agreements with various
foreign counterparties to hedge the currency risk on its fixed rate notes
maturing in 2009, 2012 and 2017.  As at June 30, 2005 and December 31, 2004, these long-term currency swaps have an aggregate notional amount of US$550
million.  Under the 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
 June 30, 2005 and December 31, 2004, the outstanding swap contracts have an
agreed average swap exchange rate of Php50.76.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">In order
to manage hedge costs, these swaps included 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 agreed threshold amounts
where applicable, 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 June 30, 2005 and December 31, 2004, US$725 million of PLDT&#146;s long-term currency swaps/options have 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 about 3.79% and 2.95% per annum as at June 30, 2005 and December 31, 2004, respectively.  As cash flow hedges, any movements in the fair value of
these instruments will be taken as a cumulative translation adjustment under
equity in our consolidated balance sheets.</p>

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

<p style='margin-left:27.0pt;text-indent:0in' style="margin-top:0;margin-bottom:0"><i>Long-term
Foreign Currency Options</i></p>

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

<p style='margin-left:.25in;text-indent:0in' 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 maturity date settles
beyond Php90.00 to US$1.00, PLDT will have to purchase U.S. dollar at an
exchange rate of Php52.50 to US$1.00 plus 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 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 4.72% and 3.94% per
annum as at June 30, 2005 and December 31, 2004, respectively.</p>

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

<p style='margin-left:.25in;text-indent:0in' 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 prevailing spot rate at maturity whichever is lower, qualifies as
a cash flow hedge.  The option currency contract relating to the counterparty&#146;s
option to purchase foreign currency from PLDT at Php90.00 to US$1.00 is not
designated as a hedge.  Please refer to discussion below (under transactions
not designated as hedges).</p>

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

<p style='margin-left:27.0pt;text-indent:0in' style="margin-top:0;margin-bottom:0"><i>Short-term
Foreign Currency Options</i></p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">PLDT
utilized structures incorporating currency options to hedge the maturing
principal on its fixed rate notes due June 2004 and August 2005.  Under the
terms of the contracts, PLDT will have the option to purchase U.S. dollar at an
agreed Philippine peso to U.S. dollar spot exchange rate or prevailing spot
rate at maturity whichever is lower.</p>

<p style='margin-left:.25in' 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>Transactions Not Designated as Hedges</i></b></p>

<p style='margin-left:.25in;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">Due to the amounts of PLDT&#146;s foreign currency hedging requirements
and the large interest differential between the Philippine peso and the U.S.
dollar, the costs to book long-term hedges can be significant.  In order to
manage such hedging costs, PLDT utilizes structures that include currency
option contracts, and fixed-to-floating coupon-only swaps that may not qualify
for hedge accounting. </p>

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

<p style='margin-left:27.0pt;text-indent:0in' style="margin-top:0;margin-bottom:0"><i>Long-term
Foreign Currency Options</i></p>

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

<p style='margin-left:.25in;text-indent:0in' 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
long-term currency option contract classified under cash flow hedges, PLDT has
the obligation to purchase U.S. dollar at an exchange rate of Php52.50 to
US$1.00 plus 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='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:27.0pt;text-indent:0in' style="margin-top:0;margin-bottom:0"><i>Short-term
Currency Options</i></p>

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

<p style='margin-left:.25in' 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 August 2005 have features similar to that of the
long-term currency option contracts.  PLDT simultaneously sold currency option
contracts with the same notional amounts with same maturity.  Together with the
other short term currency option contracts classified under cash flow hedges,
PLDT has the obligation to buy U.S. dollar at the agreed strike price plus the
excess above the agreed threshold rate should the Philippine peso to U.S.
dollar spot exchange rate on 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='margin-left:.25in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">PLDT also entered into short-term U.S. dollar
subsidized forwards and Japanese yen currency option contracts to hedge other
short-term foreign currency obligations.</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:27.0pt;text-indent:0in' style="margin-top:0;margin-bottom:0"><i>Interest
Rate Swap</i></p>

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

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

<p style='margin-left:27.0pt;text-indent:0in' style="margin-top:0;margin-bottom:0"><i>Forward
Foreign Exchange Contracts</i></p>

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

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

<p style='margin-left:27.0pt;text-indent:0in' style="margin-top:0;margin-bottom:0"><i>Bifurcated
Embedded Derivatives</i></p>

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

<p style='margin-left:.25in;text-indent:0in' 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 as at December 31, 2004 covered service contracts denominated in
U.S. dollars paid out to a Japanese company in April 2005.  There are no
outstanding bifurcated embedded derivative transactions as at June 30, 2005.</p>

<p style='margin-left:.25in' 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"><b><i>Smart</i></b></p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Smart&#146;s
embedded derivatives were bifurcated from service and purchase contracts.  As
at June 30, 2005 and December
 31, 2004, outstanding contracts included
a service contract with foreign equipment supplier and various suppliers
covering handset and equipment importations payable in U.S. dollars.</p>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Embedded
derivatives were also bifurcated from prepaid forwards.  The related
prepayments amounting to Php27 million and Php3,873 million as at June 30, 2005 and December 31, 2004,
respectively, are presented under &#147;Short-term investments.&#148;  The embedded
foreign currency derivatives bifurcated from these prepaid forwards are
presented as derivative assets or derivative liabilities.</p>

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

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Financial Risk Management Objectives and Policies</b></p>

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

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

<p style='margin-left:.25in' 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 reviews and
agrees with policies for managing each of these risks and they 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 2 &#150; Summary of Significant Accounting Policies</i>.</p>

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

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

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

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

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b><i>Foreign
Currency Risk</i></b></p>

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

<p style='margin-left:.25in' 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 June 30, 2005 and December 31, 2004:</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:96.2%;margin-left:18.4pt;border-collapse:collapse'>

 <tr style='page-break-inside:avoid;height:15.35pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;height:15.35pt'>
 <p 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:15.35pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>June 30, 2005</b><b><br>
 (Unaudited)</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:15.35pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">December 31, 2004<br>
 (Audited)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:20.2pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:20.2pt'>
 <p 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:20.2pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>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 0in 0in 0in;height:20.2pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Php Equivalent</b>(1)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:20.2pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">U.S. Dollar</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:20.2pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">Php Equivalent(2)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.5pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:11.5pt'>
 <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;height:11.5pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>

 <tr style='height:11.7pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0"><b>Noncurrent Financial Assets</b></p>
 </td>
 <td   valign=bottom style=' 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"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' 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=' 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"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' 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"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Derivative assets</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>US$</b><b>61</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Php3,435</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">US$73</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php4,113</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Notes receivable</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <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=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>346</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <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;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">286</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <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:13.45pt'>
 <p style='margin-left:.25in' 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;
 padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>  67</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:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>3,781</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:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">  78</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:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,399</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p style="margin-top:0;margin-bottom:0"><b>Current Financial Assets</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:13.45pt'>
 <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;
 height:13.45pt'>
 <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;
 height:13.45pt'>
 <p 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;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Cash and cash equivalents</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>315</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>17,668</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">251</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">14,142</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Short-term investments</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <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=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>68</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">69</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,888</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Trade and other receivables</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>141</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>7,938</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">146</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">8,226</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Derivative assets</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>21</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>476</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <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;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">338</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <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:13.45pt'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Total current 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;
 padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b> 478</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:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>26,150</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:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 472</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:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">26,594</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:13.45pt'>
 <p style='margin-left:8.6pt' 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;padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' 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;padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Php29,931</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">US$550</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php30,993</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:13.45pt'>
 <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;
 height:13.45pt'>
 <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;
 height:13.45pt'>
 <p 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;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p style="margin-top:0;margin-bottom:0"><b>Noncurrent Financial Liabilities</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <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;
 height:13.45pt'>
 <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;
 height:13.45pt'>
 <p 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;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Interest-bearing financial
 liabilities</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>US$</b><b>2,022</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Php113,578</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">US$2,330</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php131,275</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Derivative liabilities</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>85</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>4,755</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">105</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">5,916</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <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:13.45pt'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Total noncurrent financial
 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;
 padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,107</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:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>118,333</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:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,435</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:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">137,191</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 <p style="margin-top:0;margin-bottom:0"><b>Current Financial Liabilities</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:13.45pt'>
 <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;
 height:13.45pt'>
 <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;
 height:13.45pt'>
 <p 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;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Accounts payable</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>20</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,124</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">46</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,592</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Accrued expenses and other
 current liabilities</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>54</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>3,017</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">77</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,338</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Derivative liabilities</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>4</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>229</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">451</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:13.45pt'>
 <p style='margin-left:9.0pt' 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;padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>511</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>28,644</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">483</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">27,213</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:13.45pt'>
 <p style='margin-left:.25in' 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;padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b> 589</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>33,014</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 614</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">34,594</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:13.45pt'>
 <p style='margin-left:9.0pt' 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;padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>US$</b><b>2,696</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Php</b><b>151,347</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">US$3,049</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php171,785</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><i>(1)</i><i>   The exchange
rate used was Php56.177 to US$1.00.</i></p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><i>(2)     </i><i>The exchange
rate used was Php56.341 to US$1.00.</i></p>

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

<p style='margin-left:.25in;text-indent:0in' 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 Php56.177 to US$1.00 and
Php56.341 to US$1.00, the Philippine peso-U.S. dollar exchange rates as at June 30, 2005 and December 31, 2004, respectively.</p>

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">As at August 3, 2005, the peso&#150;dollar exchange rate was Php56.106 to US$1.00.  Using this
exchange rate, our consolidated net foreign currency&#150;denominated liabilities as
at June 30, 2005 would have decreased by Php153 million.</p>

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

<p style='margin-left:.25in;text-indent:0in' 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='margin-left:.25in;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">As at June 30,
 2005, 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 62% 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 17 &#150;
Interest-bearing Financial Liabilities</i>.</p>

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

<p style='margin-left:.25in;text-indent:0in' 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.</p>

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

<p style='margin-left:.25in' 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-left:.25in' 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"><b><i>Interest
Rate Risk</i></b></p>

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

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">The
following tables set out the carrying amount, by maturity, of our financial
instruments that are exposed to interest rate risk:</p>

<p style='margin-left:.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:auto' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">Six
Months Ended June 30, 2005 (Unaudited)</h1>

<p style='margin-left:.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:101.52%;margin-left:5.4pt;border-collapse:collapse'>

 <tr>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;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>&nbsp;</b></p>
 </td>
 <td   colspan=5 valign=bottom style=' border:none;
 border-top: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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top: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">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-top: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">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-top: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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top: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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top: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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top: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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top: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"><b>Discount/</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top: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"><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=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 border-top: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"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' 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>&nbsp;</b></p>
 </td>
 <td   colspan=5 valign=bottom 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=bottom 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' 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>
 <td   valign=bottom 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=bottom 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=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Debt</b></p>
 </td>
 <td   valign=bottom style=' 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   colspan=3 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>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.5pt'>
 <td   rowspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:7.5pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=5 rowspan=2 valign=bottom style='
 padding:0in 5.4pt 0in 5.4pt;height:7.5pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   rowspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:7.5pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   rowspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:7.5pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   rowspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:7.5pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   rowspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:7.5pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0"><b>Over 5 </b></p>
 </td>
 <td   rowspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:7.5pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0"><b>In </b><b>U.S.</b><b> </b></p>
 </td>
 <td   rowspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:7.5pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   rowspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:7.5pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Issuance Cost</b></p>
 </td>
 <td   rowspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:7.5pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Carrying Value</b></p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:
 7.5pt'>
 <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;height:7.5pt'>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 5.4pt 0in 5.4pt;height:7.5pt'>
 <p align=center style=';text-align:center' style="margin-top:0;margin-bottom:0"><b>In </b><b>U.S.</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt;height:7.5pt'>
 <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=' border:none;border-bottom:
 solid windowtext 1.0pt;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>&nbsp;</b></p>
 </td>
 <td   colspan=5 valign=bottom 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"><b>Below 1 year</b></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='text-align:right' style="margin-top:0;margin-bottom:0"><b>1-2 years</b></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=';text-align:right' style="margin-top:0;margin-bottom:0"><b>2 &#150; 3 years</b></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=';text-align:right' style="margin-top:0;margin-bottom:0"><b>3-5 years</b></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=';text-align:right' style="margin-top:0;margin-bottom:0"><b>years</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' style="margin-top:0;margin-bottom:0"><b>Dollar</b></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='text-align:right' style="margin-top:0;margin-bottom:0"><b>In Php</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' style="margin-top:0;margin-bottom:0"><b>In Php</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' style="margin-top:0;margin-bottom:0"><b>In Php</b></p>
 </td>
 <td   colspan=2 valign=bottom 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"><b>Dollar</b></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='text-align:right' style="margin-top:0;margin-bottom:0"><b>In Php</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;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>&nbsp;</b></p>
 </td>
 <td   colspan=5 valign=bottom style=' border:none;
 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=bottom style=' border:none;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;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;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=bottom style=' border:none;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=bottom style=' border:none;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=bottom style=' border:none;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   colspan=5 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>(in millions)</b></p>
 </td>
 </tr>

 <tr>
 <td   valign=bottom style=' 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>Liabilities:</b></p>
 </td>
 <td   colspan=5 valign=bottom 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=bottom 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' 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>
 <td   valign=bottom 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=bottom 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=bottom 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=bottom style=' 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=' 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   colspan=2 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' 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'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Long-term Debt</p>
 </td>
 <td   colspan=5 valign=bottom 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=bottom 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' 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>
 <td   valign=bottom 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=bottom 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=bottom 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=bottom style=' 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=' 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   colspan=2 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' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:4.5pt' style="margin-top:0;margin-bottom:0"><i>Fixed
 Rate</i></p>
 </td>
 <td   colspan=5 valign=bottom 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=bottom 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' 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>
 <td   valign=bottom 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=bottom 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=bottom 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=bottom 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=bottom 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   colspan=2 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' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">US$
 Notes (in millions)</p>
 </td>
 <td   colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">230</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">236</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <p align=right style='margin-right:.4pt;text-align:right' style="margin-top:0;margin-bottom:0">550</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">1,191</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">66,879</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">837</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">66,042</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">1,293</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">72,650</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Interest
 rate</p>
 </td>
 <td   colspan=5 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">9.25% to <br>
 9.875%</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">7.85% to 10.625%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <p align=right style='margin-right:.4pt;text-align:right' style="margin-top:0;margin-bottom:0">10.50%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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'>
 <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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">101</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">52</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">42</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' 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:.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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">514</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">28,861</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">7,000</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">21,861</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">414</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">23,193</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">4.49% to 6.66%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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'>
 <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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Japanese
 Yen (in millions)</p>
 </td>
 <td   colspan=5 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">25</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">25</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">25</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">75</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">4,238</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">4,238</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">76</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">4,280</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   colspan=5 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Philippine
 Peso (in millions)</p>
 </td>
 <td   colspan=5 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">14</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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'>
 <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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">1,926</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' 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='text-align:right' style="margin-top:0;margin-bottom:0">1,921</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">38</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">2,141</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">11.18% to 24%</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">15.816% to 24%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">15.00%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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'>
 <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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <p style='margin-left:4.5pt' style="margin-top:0;margin-bottom:0"><i>Variable
 Rate</i></p>
 </td>
 <td   colspan=5 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' 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:.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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 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=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">U.S.
 Dollar (in millions)</p>
 </td>
 <td   colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">149</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">160</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">115</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">147</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">104</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">675</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">37,917</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">1,958</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">35,959</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">675</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">37,917</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   colspan=5 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">GOVCO&#146;s Cost + 0.20%; 0.15% to 4.30% over  LIBOR</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">GOVCO&#146;s Cost + 0.20%; 0.15% to 4.30% over LIBOR</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">GOVCO&#146;s Cost + 0.20%; 0.15% to 4.30% over LIBOR</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">0.15% to 2.50% over LIBOR</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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'>
 <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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Japanese
 Yen (in millions)</p>
 </td>
 <td   colspan=5 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <p align=right style='margin-right:.6pt;text-align:right' 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:.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'>
 <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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">17</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">958</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">956</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">17</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">958</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   colspan=5 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">1.70% over LIBOR</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">1.70% over LIBOR</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">1.70% over LIBOR</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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=5 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <p align=right style='margin-right:.6pt;text-align:right' 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:.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'>
 <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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">12</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">689</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">111</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"> 578</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">12</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">689</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   colspan=5 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% over 91-day T-bill rate; 11% to 11.25%</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% over 91-day T-bill rate; 11% to 11.25%</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">1% over 91-day T-bill rate; 11% to 11.25%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">1% over 91-day T-bill rate</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">1% over 91-day T-bill rate</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">&#150;</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">&#150;</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">&#150;</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">&#150;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</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'>
 <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=5 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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>2,518</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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>141,468</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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>9,913</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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>131,555</b></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;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>2,525</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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>141,828</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=5 valign=bottom 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=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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'>
 <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' 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>
 <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   colspan=2 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' 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'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Interest rate swap (fixed to floating)</i></p>
 </td>
 <td   colspan=2 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='margin-right:.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:.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:.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='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>
 <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   colspan=2 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   colspan=3 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">U.S. Dollar (US$125 million)</p>
 </td>
 <td   colspan=3 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">&#150;</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">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</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">(41)</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">(2,315)</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">&#150;</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">&#150;</p>
 </td>
 <td   colspan=2 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">(41)</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">(2,315)</p>
 </td>
 </tr>
 <tr>
 <td   colspan=5 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt;page-break-after:
 avoid' 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'>
 <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='margin-right:.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:.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:.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</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">&#150;</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">&#150;</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">&#150;</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">&#150;</p>
 </td>
 <td   colspan=2 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">&#150;</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">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Fixed Rate on US$ notional </p>
 </td>
 <td   colspan=5 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">11.375%</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">11.375%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11.375%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11.375%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11.375%</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">&#150;</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">&#150;</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">&#150;</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">&#150;</p>
 </td>
 <td   colspan=2 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">&#150;</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">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   colspan=2 valign=top style=' border:none;
 border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Variable Rate on JPY notional</p>
 </td>
 <td   colspan=4 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">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'>
 <p align=right style='text-align:right;page-break-after:avoid' 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'>
 <p align=right style='margin-right:.6pt;text-align:right;
 page-break-after:avoid' 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'>
 <p align=right style='margin-right:.6pt;text-align:right;
 page-break-after:avoid' 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'>
 <p align=right style='margin-right:.6pt;text-align:right;
 page-break-after:avoid' 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'>
 <p align=right style='text-align:right;page-break-after:avoid' 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'>
 <p align=right style='text-align:right;page-break-after:avoid' 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'>
 <p align=right style='text-align:right;page-break-after:avoid' 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'>
 <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=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">&#150;</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">&#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>
 <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' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in;text-indent:-.25in;page-break-after:auto' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">Year
Ended December 31, 2004 (Audited)</h1>

<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:101.52%;margin-left:5.4pt;border-collapse:collapse'>

 <tr>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;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>&nbsp;</b></p>
 </td>
 <td   colspan=4 valign=bottom style=' border:none;
 border-top: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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top: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">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-top: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">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-top: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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top: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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top: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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top: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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top: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"><b>Discount/</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top: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"><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=right style='text-align:right' 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'>
 <p align=right style='text-align:right' 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 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=4 valign=bottom 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=bottom 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' 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>
 <td   valign=bottom 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=bottom 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=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Debt</b></p>
 </td>
 <td   valign=bottom style=' 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   colspan=2 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>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.5pt'>
 <td   rowspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:7.5pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=4 rowspan=2 valign=bottom style='
 padding:0in 5.4pt 0in 5.4pt;height:7.5pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   rowspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:7.5pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   rowspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:7.5pt'>
 <p align=center style=';text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   rowspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:7.5pt'>
 <p align=center style=';text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   rowspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:7.5pt'>
 <p align=center style=';text-align:center' style="margin-top:0;margin-bottom:0"><b>Over 5</b></p>
 </td>
 <td   rowspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:7.5pt'>
 <p align=center style=';text-align:center' style="margin-top:0;margin-bottom:0"><b>In </b><b>U.S.</b></p>
 </td>
 <td   rowspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:7.5pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   rowspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:7.5pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Issuance Cost</b></p>
 </td>
 <td   rowspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:7.5pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Carrying Value</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:
 7.5pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Fair Value</b><b>
 </b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.5pt'>
 <td   valign=bottom style=' border:none;padding:0in 5.4pt 0in 5.4pt;
 height:7.5pt'>
 <p align=center style=';text-align:center' style="margin-top:0;margin-bottom:0"><b>In </b><b>U.S.</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt;height:7.5pt'>
 <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=' border:none;border-bottom:
 solid windowtext 1.0pt;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>&nbsp;</b></p>
 </td>
 <td   colspan=4 valign=bottom 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"><b>Below 1 year</b></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='text-align:right' style="margin-top:0;margin-bottom:0"><b>1-2 years</b></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=';text-align:right' style="margin-top:0;margin-bottom:0"><b>2-3 years</b></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=';text-align:right' style="margin-top:0;margin-bottom:0"><b>3-5 years</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' style="margin-top:0;margin-bottom:0"><b>years</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' style="margin-top:0;margin-bottom:0"><b>Dollar</b></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='text-align:right' style="margin-top:0;margin-bottom:0"><b>In Php</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' style="margin-top:0;margin-bottom:0"><b>In Php</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' style="margin-top:0;margin-bottom:0"><b>In Php</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' style="margin-top:0;margin-bottom:0"><b>Dollar</b></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='text-align:right' style="margin-top:0;margin-bottom:0"><b>In Php</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;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>&nbsp;</b></p>
 </td>
 <td   colspan=4 valign=bottom style=' border:none;
 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=bottom style=' border:none;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;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;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=bottom style=' border:none;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=bottom style=' border:none;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=bottom style=' border:none;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   colspan=4 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>(in millions)</b></p>
 </td>
 </tr>

 <tr>
 <td   valign=bottom style=' 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>Liabilities:</b></p>
 </td>
 <td   colspan=4 valign=bottom 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=bottom 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' 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>
 <td   valign=bottom 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=bottom 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=bottom 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=bottom style=' 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=' 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=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' 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'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Long-term Debt</p>
 </td>
 <td   colspan=4 valign=bottom 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=bottom 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' 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>
 <td   valign=bottom 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=bottom 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=bottom 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=bottom style=' 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=' 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=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' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:4.5pt' style="margin-top:0;margin-bottom:0"><i>Fixed
 Rate</i></p>
 </td>
 <td   colspan=4 valign=bottom 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=bottom 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' 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>
 <td   valign=bottom 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=bottom 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=bottom 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=bottom 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=bottom 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' 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">US$
 Notes (in millions)</p>
 </td>
 <td   colspan=4 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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'>
 <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'>
 <p align=right style='margin-right:.4pt;text-align:right' style="margin-top:0;margin-bottom:0">550</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">1,237</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">69,725</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">930</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">68,795</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">1,307</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Interest
 rate</p>
 </td>
 <td   colspan=4 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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=4 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">93</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">51</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">58</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">7,340</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">26,850</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">576</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   colspan=4 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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'>
 <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=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Japanese
 Yen (in millions)</p>
 </td>
 <td   colspan=4 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">96</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   colspan=4 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Philippine
 Peso (in millions)</p>
 </td>
 <td   colspan=4 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <p align=right style='text-align:right' 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='text-align:right' style="margin-top:0;margin-bottom:0">2,366</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">45</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   colspan=4 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">11.18% to 24%</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">11.6% to 24%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <p style='margin-left:4.5pt' style="margin-top:0;margin-bottom:0"><i>Variable
 Rate</i></p>
 </td>
 <td   colspan=4 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' 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:.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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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' 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' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">U.S.
 Dollar (in millions)</p>
 </td>
 <td   colspan=4 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">213</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">139</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">117</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">2,045</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">43,787</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">814</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   colspan=4 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">0.15% to 4.3% over LIBOR</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">0.15% to 4.3% over LIBOR</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">0.15% to 4.3% over LIBOR</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">0.15% to 4.3% over LIBOR</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Japanese
 Yen (in millions)</p>
 </td>
 <td   colspan=4 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   colspan=4 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">1.7% over JPY LIBOR </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">1.7% over JPY LIBOR </p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">1.7% over JPY LIBOR </p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">1.7% over JPY LIBOR</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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=4 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <p align=right style='margin-right:.6pt;text-align:right' 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:.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'>
 <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'>
 <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'>
 <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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">120</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"> 657</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">13</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   colspan=4 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">1.0% over 91-day T-bill rate; 11% to 11.25%</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">1.0% over 91-day T-bill rate; 11% to 11.25%</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">1% over 91-day T-bill rate; 11% to 11.25%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">1% over 91-day T-bill rate</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">1% over 91-day T-bill rate</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">&#150;</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">&#150;</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">&#150;</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">&#150;</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">&#150;</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">&#150;</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'>
 <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=4 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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>2,830</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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>159,470</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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>10,440</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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>149,030</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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>2,873</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'>
 <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'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=4 valign=bottom 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=bottom 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=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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'>
 <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' 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>
 <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' 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   colspan=4 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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' 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:.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'>
 <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'>
 <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'>
 <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' 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>
 <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' 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   colspan=3 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">U.S. Dollar (US$125 million)</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">(62)</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">(3,468)</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">(62)</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">(3,468)</p>
 </td>
 </tr>
 <tr>
 <td   colspan=3 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Fixed Rate on US$ notional </p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   colspan=2 valign=top style=' border:none;
 border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'>
 <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=3 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">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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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'>
 <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>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in;text-indent:0in' 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='page-break-after:auto' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">&nbsp;</h1>

<p style='margin-left:.25in;text-indent:0in' 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.  Financial instruments that are not subject to
interest rate risk were not included in the above tables.</p>

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">&nbsp;</h1>

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

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

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

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

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">We have no
significant concentrations of credit risk.</p>

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

<p style='margin-left:.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="margin-top:0;margin-bottom:0"><b>25. Other
Matters</b></p>

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

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">a.   Interconnection Agreements</p>

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

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

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">b.   U.S. Federal Communications Commission, or U.S. FCC,
Ruling versus Philippine Telecommunications Companies</p>

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

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

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

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

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

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

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

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

<p style='margin-left:.5in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">c.   Investigation by the U.S.
Department of Justice</p>

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

<p style='margin-left:.5in;text-indent:0in' 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 being conducted by the U.S. Department of Justice with respect to
alleged anti-trust 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 align=left style='text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

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